Gary Stephen Kaplan, the founder of BetOnSports PLC, was arrested on Wednesday in the Dominican Republic. He was sent from there to Puerto Rico to appear before a magistrate, and will soon be sent to St. Louis.

Kaplan has been wanted by the U.S. on charges of fraud and a racketeering conspiracy. He was charged in St. Louis federal court last year for allegedly running a criminal enterprise that illegally took $3.5 billion in bets since 2001. Kaplan, 10 people, and 4 corporations were indicted, and co-owner of BetOnSports Norman Steinberg is still on the run. After one executive was arrested in July, the company announced it was stopping U.S. operations, which accounted for about 90% of its business.

In October, the U.S. Congress passed a law which banned almost all forms of online gambling.

After Barry Minkow and Fraud Discovery Institute revealed earlier this week that Denis Waitley (board of directors for Usana) didn’t have the credentials he claimed, Usana is covering for him. They announced late today that he will be retiring, with this statement:

Dr. Denis Waitley has decided not to stand for reelection to the USANA board of directors. Dr. Waitley recently informed USANA that an error appeared in his biography listed in the Company’s proxy statement and that he did not in fact earn a masters degree in Organizational Development from the Naval Post Graduate School in Monterey, California. Dr. Waitley did confirm that he earned a Bachelor of Science degree from the United States Naval Academy in Annapolis, Maryland, and a Ph.D. in Human Behavior from La Jolla University. Dr. Waitley’s board term will end on April 17, 2007, at which time he will retire as a director of the Company.

That’s four in one day!

An “internal audit committee” at Dell Inc has found evidence of accounting errors and misconduct. The committee has been investigating accounting and financial reporting issues, which included examining historical earnings statements.

A press release issued by Dell said the committee “…identified a number of accounting errors, evidence of misconduct, and deficiencies in the financial control environment.”

Dell also announced that it would not file its annual 10-K with the Securities and Exchange Commission on time.

The Law Firm of Goldman Scarlato & Karon, P.C. Announces Class Action Lawsuit Against USANA Health Sciences, Inc.

CONSHOHOCKEN, Pa.– Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the District of Utah, on behalf of persons who purchased or otherwise acquired publicly traded securities of USANA Health Sciences, Inc. (“USANA” or the “Company”) (NASDAQ:USNA – News) between July 18, 2006 and March 14, 2007, inclusive, (the “Class Period”). The lawsuit was filed against USANA and certain officers and directors (“Defendants”).

If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at info@gsk-law.com and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than May 25, 2007 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants issued a series of false and misleading statements regarding the Company’s financial results. More specifically, the complaint alleges that Defendants failed to disclose, among other things: (1) that the Company’s multi-level marketing strategy was operating as a pyramid scheme; (2) the bulk of the Company’s sold not to end customers, but to other associates; (3) that the Company was experiencing a high associate turnover rate.

If you bought USANA securities between July 18, 2006 and March 14, 2007, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 668-4130 to speak with an advisor.

Note: This is important because the alleged credentials of Denis Waitley have been included in Usana’s SEC filings.

SAN DIEGO, March 28, 2007 — An independent inquiry ordered by the Fraud Discovery Institute, Inc. (FDI) to look into the background of Denis E. Waitley, longtime director and spokesman of Usana Health Sciences Inc. (Nasdaq: USNA – News), could not confirm statements made on multiple, official S.E.C. filings about Mr. Waitley’s educational credentials, it was announced by Barry Minkow and FDI today. Usana has made headlines in the last two weeks after coming under S.E.C. scrutiny following a 500-page report from FDI that was made public and a subsequent investigative cover story in the Money & Investing section of the Wall Street Journal (March 15).

Let the fun begin! A couple days ago I saw a commercial for a program called “A Home Run for Trademark” on TLC. It looked like this will be the warmup for the new show featuring Richard Davis, Ginger, and Trademark Properties. Richard and crew are out of the clutches of A&E and the “Flip This House” fiasco. They are starting over on TLC with a new reality show called “The Real Deal.”

And sure enough, I got an email last night from Trademark about the show:

In the one-hour special, Davis and his team first purchase the former home of baseball great Shoeless Joe Jackson in Greenville, SC and then work to transform it into a Shoeless Joe museum. Although Shoeless Joe was banned from baseball in 1921 due to his alleged involvement in the “Black Sox” scandal, his fans have worked tirelessly to restore his reputation ever since. For his part, Davis puts together a crew, transplants and repositions the house all in just one week, giving Shoeless Joe a place of honor in the hearts of baseball fans everywhere.

Assisting Davis in the project is construction foreman Josh Hamilton. A former professional baseball player himself with the Tampa Bay Devil Rays, Hamilton was sidelined in 2002 when a drug addiction crippled his ability to play. He was subsequently suspended from baseball. Now, Hamilton has a second chance: out of rehab and into Davis’ construction crew, Hamilton hopes this will be a stepping stone to getting his career back on track.

Davis and his team have just one shot to give both of these baseball greats a second chance. Will they pull it off?

Go Trademark!!!

Dreier LLP Files Class Action Lawsuit Against USANA Health Sciences, Inc. (USNA)
Monday March 26, 7:40 pm ET

NEW YORK, March 26 /PRNewswire/ — Dreier LLP today announced that a class action lawsuit was commenced in the United States District Court for the District of Utah, on behalf of purchasers of the common stock of USANA Health Sciences, Inc. (“USANA” or the “Company”) (Nasdaq: USNA – News) during the period July 18, 2006 through March 14, 2007, inclusive (the “Class Period”). The complaint alleges violations of the federal [tag]securities laws[/tag], including Section 10(b) of the Securities Exchange Act of 1934.

If you purchased USANA common stock during the Class Period, you may be a member of the proposed Class. You must move the Court on or before May 25, 2007 if you wish to serve as a lead plaintiff. Lead plaintiffs must meet certain legal requirements. To learn more about this lawsuit or if you are interested in serving as a lead plaintiff, please contact plaintiff’s counsel, Lee A. Weiss (classlaw@dreierllp.com) of Dreier LLP at 800-952-8897. Class members may retain counsel of their choice and move the Court to serve as a lead plaintiff, or may choose to do nothing and remain absent class members.

USANA is a health sciences company engaged in the manufacture and sale of nutritional and personal care products headquartered in Salt Lake City, Utah. The Complaint alleges that, throughout the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results and failed to disclose, among other things, that: (1) the Company’s multi-level marketing system was operating as a [tag]pyramid scheme[/tag]; (2) the majority of the Company’s Associates did not sell to consumers, but sold to other Associates; (3) the Company was experiencing an exceedingly high Associate attrition rate, resulting in an unsustainable sales force; (4) 74% of the Company’s new Associates were failing within the first year; and (5) 87% of the Company’s Associates were losing money.

The Complaint further alleges that, as a result of these [tag]false statements[/tag] and omissions, USANA common stock traded at artificially inflated or distorted prices. On March 15, 2007, the Fraud Discovery Institute issued a press release and The Wall Street Journal published an article concerning a three-year investigation by the Fraud Discovery Institute that had revealed that USANA’s multi-level marketing system was an unsustainable pyramid scheme. In reaction to this news, the price of the Company’s stock declined $8.92 per share, or 15%, to close on March 15, 2007 at $49.85 per share, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of all members of the proposed Class.

The plaintiff is represented by Dreier LLP. Dreier LLP’s Class Action Litigation Group has vast experience representing domestic and foreign institutional and individual investors in securities and other class actions throughout the country. The partners who head Dreier LLP’s Class Action Litigation Group have successfully prosecuted securities fraud class actions in a wide variety of industries and have played a significant role in cases that have resulted in some of the largest securities class action settlements.

The Securities and Exchange Commission (SEC) censured Ernst & Young LLP for doing work that compromised its indepence with regard to American International Group (AIG) and PNC Financial Services Group. The work included helping AIG develop and market a financial product that was sold to PNC, who was an audit client of E&Y.

PNC improperly accounted for certain transactions, which led to a restatement of income by $155 million. The SEC claims that E&Y didn’t detect these accounting errors because the firm didn’t scrutinize transactions, relying instead on information from E&Y partners who worked on the AIG project./

E&Y will also pay $1.5 million dollars to settle these charges, but did not admit or deny the charges. This is the second time E&Y has been censured for lack of independence in audits. The first charge was in 2003, when E&Y was receiving money for recommending PeopleSoft software to clients, even though PeopleSoft was an auditing client of E&Y.

Wise Bread discusses a scam at Best Buy that looks like it may have been resolved. Apparently Best Buy was selling items at lower prices on the internet. If you went into a store to buy the item (which the internet said was in stock), you would see the higher price. If you asked a sales associate about it, they would “go online” and show you that the price on the item was correct. The problem was that they were pulling the price from their INTRANET, which is an internal system only… which happened to have higher prices than the INTERNET.

Sox First discusses a paper on external auditors and red flags. The author of the paper identified 42 red flags, which, if seen by an external auditor, should be a sign that fraud may be occurring at a company.

Trusted Advisor talks about his recent trip to Argentina and issues of trust.

The Real Estate Forum features a commentary on subprime lending and laws that are written for the lowest common denominator.

Badger Blogger highlights the head of the Wisconsin Department of Transportation, Frank Busalacchi. It seems the dog ate his homework.

Wenchypoo treats us to a fascinating commentary on the farce of alternative energy sources. I’ve always said that “alternative energy” sounds nice and makes people feel good, but for now is not viable.

And finally, I’ve got more information on the Fraud Discovery Institute’s investigation of Usana Health Sciences. Usana filed a lawsuit, but curiously, addresses almost none of the real issues revealed during our investigation.