Thomas E. Jackson, co-founder of Imperial Integrative Health Research and
Development LLC (Imperial) was sentenced for wire fraud and money laundering.
On March 25, Jackson was convicted of conspiracy to both commit wire fraud
and money laundering, eight counts of wire fraud, and 12 counts of money
laundering. He was sentenced to serve almost seven years in prison, three
years of supervised release, and must pay $8,840,106 in restitution to
Preston J. Harrison, Jackson’s business partner, was also charged
and sentenced for wire fraud, tax fraud, and money laundering. Preston
was found guilty for filing false income tax returns, conspiracy to defraud
the United States, conspiracy to wire fraud and money laundering, and
12 counts of money laundering. On August 25, he received a similar sentence
Lovena Harrison, Preston’s wife, has also been convicted of filing
false income tax returns, conspiracy to defraud the United States, and
evading currency reporting requirements. On August 25, she was sentenced
to serve a year in prison, have three years of supervised release, and
pay approximately $367,000 to the IRS in restitution.
According to court testimony, Jackson and Harrison founded and operated
Imperial, which developed and sold OXYwater, a supposedly all natural
sports drink filled with vitamins. The business allegedly engaged in deceiving
investors about the company’s productivity and success. According
to reports, Jackson and Harrison sent out false documents and notices
that misrepresented the company’s profitability and success. They
allegedly used these documents to gain additional funds from investors.
They allegedly used this money to fund their personal lifestyle, which
includes buying jewelry, cars, weapons, etc.
Between August 2010 and the spring of 2013, Jackson and Harrison supposedly
defrauded $2.2M of investor’s money. Because the company filed for
bankruptcy with no assets, investors lost approximately $9 million dollars.
In 2011, Harrison and his wife allegedly misappropriated $1.1M in investor’s
money, redirecting it to a daycare business. They used these funds for
personal use and failed to report it on their income tax return.