31 Oct

Usana Insider in Charge of Asia Pacific Unloads Tons of Stock After Minkow Exposes Company for Cheating in China

Insider: Bradford Richardson, Executive Vice President of Asia Pacific

Company Bio: Bradford joined USANA in December 1997 as executive director of international development, and from 1999-2005 held the roles of vice president of international development and vice president of international. In January 2006, he was appointed executive vice president of Asia Pacific, and currently has profit & loss responsibility for USANA’s operations in the Asia Pacific region. Additionally, Bradford is responsible for the definition and execution of USANA’s international expansion strategy.

Cheating in China: Barry Minkow and Fraud Discovery Institute reveal on October 18 that Usana is illegally doing business in China. Usana employees in Hong Kong teach people how to get around Chinese laws prohibiting the operation of multi-level marketing businesses by opening bank accounts in Hong Kong and having the company ship products to a Hong Kong address for later delivery to the Chinese resident by a friend or family member.

Stock Trades:

October 25 – 5,000 shares for $207,500

October 25 – 5,000 shares for $210,000

October 26 – 5,000 shares for $210,568

Total proceeds = $628,068

Does anyone doubt that he knows how serious the violation of Chinese laws are? Does anyone doubt that Richardson knew full well that the company was violating these laws?

The company falsely stated in SEC filings that they were complying with laws in China. What does this sell-off by an insider tell you? Too bad he’s got another 20,000 shares to unload and probably has to space out his transactions.

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