A Salt Lake City man has been sentenced to three years in federal prison for his role in a fraudulent scheme involving dietary supplements and money laundering. U.S. District Court Judge David Barlow handed down the sentence to Phillip Gannuscia, 55, who pleaded guilty last April to conspiracy to commit money laundering.
In addition to his prison term, Gannuscia was ordered to serve two years of supervised release and must forfeit a Porsche 911 convertible linked to the illegal activity.
According to court records and statements made during Gannuscia’s plea and sentencing hearings, the fraud took place from December 2018 through April 2022. Gannuscia and others created fake companies using personal information from family members and friends. These companies were used to open credit card processing accounts that facilitated sales of nutraceutical and dietary products. The products were marketed with misleading advertising, which led to frequent account shutdowns due to high refund rates or “chargebacks.” To avoid detection, new fake companies were established as needed, allowing the operation to continue.
At the time of these activities, Gannuscia was already under a court order prohibiting him from engaging in credit card laundering or making false statements related to obtaining credit card processing services. He admitted he set up operations specifically designed to hide his involvement and instructed others on how to forge signatures for company documents.
Gannuscia acknowledged laundering money multiple times, each instance involving over $10,000 in fraud proceeds. The total amount attributed directly to him exceeded $1.5 million.
“The case was investigated by the IRS Criminal Investigation (IRS-CI), and FDA Office of Criminal Investigations.”
“Assistant United States Attorneys Brent L. Andrus and Luisa Gough of the U.S. Attorney’s Office for the District of Utah prosecuted the case.”
