NEWS: OXYwater Co-Founder and Partner Sentenced for Wire Fraud and Money Laundering
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 his victims.
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 to Jackson.
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.