Unlicensed distiller sold deadly product, gets 48 months in prison

Dennis R. Zeedyk, of La Porte, Indiana, was sentenced to 48 months in prison after pleading guilty to mail fraud and tax fraud by a distiller.

Zeedyk, who owned Glycerin Traders, marketed and sold an “Ethanol Extraction” product as a pure food-grade product. According to documents in the case, Zeedyk used an unregistered still to illegally produce a product that contained toxic levels of methanol and resulted in the deaths of at least three customers.

Dennis R. Zeedyk, 53 years old, was sentenced by United States District Court Judge Damon R. Leichty. He was also ordered to pay restitution to the victims of the offense in a total amount of $43,727, and to pay a fine of $76,500.

The product, which was marketed as pure, non-denatured, food-grade grain ethanol distilled from 100% corn was, in fact, sourced from the remnants of denatured industrial alcohol shipments from Lake Michigan barges.

“Defendant Zeedyk is a modern-day snake oil salesman, who hawked his product to unwitting consumers as being a ‘pure’, food-safe and “safe for human consumption” ethanol product when, in fact, his product contained high levels of deadly methanol,” said United States Attorney Clifford D. Johnson.  “As this prosecution shows, the United States government, through its various law enforcement agencies, will use its power to protect the consuming public from criminal businessmen, like Zeedyk,  who use lies to entice consumers to purchase and to use products that are dangerous.”

This case was investigated by the Alcohol & Tobacco Tax and Trade Bureau with assistance from the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation Division, the U.S. Food and Drug Administration, the U.S. Environmental Protection Agency – Criminal Investigation Division, the Indiana State Department of Health, and the Hadley Police Department (Massachusetts).

Anthony Gledhill, Assistant Administrator for Field Operations for TTB said, “This was an egregious, and thankfully, rare crime involving an illegal still and fraudulent product misrepresentations that resulted in the loss of life because of a product that should have never entered the domestic marketplace. TTB takes our responsibility for maintaining a reliable and safe alcohol marketplace seriously, and we greatly appreciate the efforts of the U.S. Attorney’s Office for the Northern District of Indiana and our local, state, and federal partners.”

Background of the case

According to documents in the case, Zeedyk owns a business called Glycerin Traders that processes and trades glycerin, methanol, and other biofuel products. From October 2016 through May 2018, Zeedyk manufactured and sold a product called “Ethanol Extraction.” Zeedyk marketed the Ethanol Extraction product as pure, non-denatured, food-grade grain ethanol distilled from 100% corn.

Zeedyk advertised the product as a solvent to extract essential oils from cannabis, herbs, and other plants; for creating medicinal tinctures and perfumes; for baking in the kitchen; and as an all-natural cleaning product, among many other uses. The product was labeled as 95% ethanol and 5% purified water. Zeedyk sold Ethanol Extraction through Amazon, eBay, and an online website to customers in states throughout the country.

Zeedyk’s representations about the product were false. In actuality, the source material for the Ethanol Extraction product came from the remnants of denatured industrial alcohol shipments from Lake Michigan barges.

Zeedyk then illegally distilled the alcohol through a distilling apparatus not registered with the federal government. The final product that Zeedyk sold to customers contained toxic high levels of methanol—approximately 30% to 45% methanol. When ingested, methanol can cause a wide variety of symptoms, such as difficulty breathing, blurred vision, dizziness, headaches, seizures, abdominal pain, vomiting, blindness, and even death.

From October 2016 to May 2018, more than 1,200 customers bought Ethanol Extraction. Zeedyk stopped selling the product in May 2018 after learning that a customer had died from drinking it. Attempts were made to distribute recall notices, but not all customers responded to the recall, and there are unaccounted containers of Ethanol Extraction. At least three customers have died from ingesting the product, and several others suffered severe physical injuries.