History of MetaboLife

It initially was flying off store shells, in hot demand by dieters seeking to shed pounds. But a probe by the U.S. Food and Drug Administration nearly shut down MetaboLife, a dietary supplement manufacturer, because it initially contained a sometimes dangerous ingredient known as ephedra.

Origins

• MetaboLife first hit store shelves in the early 1990s when company founder Michael Ellis and his business partner Michael Blevins released the product. Initially, it was marketed toward bodybuilders because it contained ephedra, an herbal remedy long used by Chinese people to cure such everyday ailments as colds. As a stimulant, ephedra is known to constrict blood vessels and increase the heart rate and blood pressure. After several years on the market, Ellis and Blevins decided to expand the marketing of MetaboLife and began to go after the captive audience of dieters.

Background on Founders

• Prior to forming MetaboLife, Ellis was a police officer in National City, California. He was arrested, placed on probation and subsequently charged in 1989 for operating a methamphetamine lab with Blevins, who also was charged for the offense. According to news accounts at the time, both men received light sentences because they were cooperative with federal authorities. When Ellis and Blevins were released from jail, they founded MetaboLife.

Early Success

• Once it was targeted toward dieters in the mid 1990s, MetaboLife began to soar. Ellis, Blevins and other company officials devised a marketing plan that called on customers to share how the product transformed their lives. According to company officials, MetaboLife at its peak was bringing in millions of dollars annually.

Federal Probe

• After receiving complaints of possible adverse reactions to ephedra, the U.S. Food and Drug Administration began to investigate possible dangers associated with the drug. MetaboLife, considered the largest diet supplement manufacturer to carry ephedra, was at the center of the investigation. The FDA claimed to have received reports of more than 100 deaths linked to side effects from ephedra. Causes included strokes, heart attacks and mild cardiac arrhythmia. MetaboLife officials continued to back the claim their product was safe throughout the investigation.

Controversy

• The FDA eventually banned the use of ephedra, and sales of MetaboLife products were spiraling downward at the beginning of the 21st Century. A 2002 report written by members of the Congressional Special Investigations Division accused MetaboLife officials of concealing important information during the federal probe. A summary in the report read, "MetaboLife took a careless approach to the adverse event reports, did not report them in a timely fashion to FDA and routinely failed to obtain the medical records necessary to evaluate the safety of its products." Ellis eventually was sentenced to six months in federal prison and fined $20,000 for making false statements to the FDA during its probe. Company officials also faced legal ramifications for tax evasion and filing fraudulent tax returns to the Internal Revenue Service.

Bankruptcy

• Legal costs, compounded with falling sales from the negative publicity, resulted in sharp declines in revenue at MetaboLife. In 2005--a decade after reaching its pinnacle--the company filed for Chapter 11 bankruptcy protection. The company had more than $1 billion in personal injury legal claims.

New Ownership

• When the dust settled from bankruptcy proceedings, MetaboLife was purchased in 2007 by dietary manufacturing manufacturer Ideasphere. Because of the FDA ban and negative publicity associated with ephedra, MetaboLife no longer contains the drug. According to Ideasphere's website, the "new" MetaboLife has evolved into a two-tiered system of products. MetaboLife Ultra, deemed the most popular product by Ideasphere, features a co-enzyme known as Q10 that delivers sustained energy without increasing caffeine levels.