Puerto Rico Tax Break Beneficiary Indicted for Allegedly Manipulating Testosterone Supplement Ratings on Amazon
He is also accused of defrauding a company who purchased the assets he allegedly manipulated and using the profits to buy a Bugatti, according to the indictment.
Kevin Thobias, an entrepreneur and beneficiary of a tax break meant to attract outside investors to Puerto Rico, has been indicted by a grand jury on charges of wire fraud and money laundering, according to an indictment obtained by Heavy Weather.
The indictment, filed Wednesday, July 3,[[1]] in the District Court of Puerto Rico, alleges Thobias and others in his employ used “black hat services” to manipulate the rating of testosterone supplements and other products he sold on Amazon through a series of companies owned by Nutragroup Holdings, LLC.
Thobias was arraigned on Friday, July 11, in San Juan. He was released on his own recognizance and pleaded not guilty to all the charges against him, according to the court docket.
Thobias is a beneficiary of Puerto Rico's Act 22 tax break, which allows investors who become residents of the archipelago to pay no capital gains tax. According to the indictment, he is listed as the sole stockholder in Nutragroup's application for an Act 20 tax exemption, which allows qualifying companies to pay a 4% tax rate on export services.
