Three Branford companies have agreed to a settlement that calls for them to pay nearly $33 million in penalties for alleged deceptive and unfair Internet marketing and sales tactics, state officials announced.
LeanSpa LLLC, NutraSlim LLC and NutraSlim U.K. Ltd., and their owner Boris Mizhen of Guilford allegedly used fake news websites and testimonials to market dietary and other supplements; promised free trials but charged customers’ cards; and failed to provide refunds, among other allegations.
However, the judgment will be suspended because the companies and Mizhen don’t have the ability to pay it, according to Attorney General George Jepsen and state Department of Consumer Protection Commissioner William M. Rubenstein.
Instead, a court-appointed receiver would sell real estate and other assets belonging to Mizhen and his wife Angelina Strano — who is a relief defendant.
Officials estimate those liquidations would yield as much as $7 million, which would be used to compensate customers.
Jepsen said his office reviewed more than 1,200 consumer complaints about the companies from around the country.
The companies marketed their weight-loss and colon-cleanse products that included LeanSpa, NutraSlim, QuickDetox and SlimFuel.
