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Diet-Patch Firm Raided: Forty law enforcement agents...

Diet-Patch Firm Raided: Forty law enforcement agents swooped down on the Irvine headquarters of a diet-patch company armed with a federal search warrant, filling two postal trucks with potential evidence in an investigation into securities and tax violations and mail fraud. New Source Ltd. and nearly 40 sister companies are the target of a probe into “misrepresentations about products, particularly transdermal (skin patch) products,” said Postal Inspector James C. Vach. In the past year, he said, the firms have bilked about 22,000 investors out of $9 million to $11 million through the sale of patches, distributorships and securities. No arrests were made Thursday and no charges have been filed.


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