Founder Of Manhattan Beach Production Company To Be Tried For Fraud

LOS ANGELES, CA — A South Bay man with a checkered history is slated to stand trial in February on charges he allegedly used the Desilu Studios name associated with Lucille Ball and Desi Arnaz's television production to defraud investors.

Charles Hensley, 68, of Redondo Beach, faces 11 counts of wire fraud and one count of aggravated identity theft. He pleaded not guilty to the federal charges last week. Hensley is best known for inventing the cold remedy Zicam and for later pleading guilty to marketing an unapproved drug as a cure for the H5N1 virus, or bird flu. The guilty plea in that case netted him a probation sentence.

Trial has been set for Feb. 21 in Los Angeles federal court, according to the U.S. Attorney's Office.

According to the indictment, from August 2017 to May 2018, Hensley successfully pitched investments in companies he owned, including Desilu Studios Inc. and Migranade Inc., which he operated out of offices in Manhattan Beach and other locations in Southern California.

Despite Hensley's claims that Desilu Studios was valued at more than $11 billion and Migranade at more than $50 million, the companies were actually shell corporations with few assets or none at all, according to the indictment.

Hensley told investors he was extremely wealthy and was backing Desilu Studios with his personal funds, according to prosecutors. However, according to the indictment, Hensley had few assets, repeatedly bounced checks, and overdrew bank accounts to get cash and pay expenses.

It further alleges that Hensley falsely represented that Desilu Studios was about to go public and that the company's stock was worth more than its face value and more than investors were paying, and would increase in value following its imminent initial public offering. Prosecutors also say Hensley stole someone's identity to list as Desilu Studio's chief financial officer in offering materials.

Hensley's lawyer could not immediately be reached for comment.

The alleged scheme impacted many investors, including some who wired the $331,000 identified in the wire fraud counts. Hensley also allegedly targeted multiple companies in the entertainment industry.

Hensley could face up to 20 years in federal prison for each wire fraud count if convicted, plus a mandatory two-year prison sentence for the aggravated identity theft count, according to the U.S. Attorney's Office.

City News Service and Patch staffer Paige Austin contributed to this report.