In the past, I’ve discussed the improper EBITDA numbers reported by Overstock.com (NASDAQ:OSTK). It comes as no surprise that the con game continues with Overstock’s latest reported numbers.

The SEC rules are very simple. “EBITDA” refers to a specific calculation, which is “earnings before interest, taxes, depreciation, and amortization.” Overstock.com and CEO Patrick Byrne have taken liberties with this number, in violation of guidance provided by the SEC on the issue.

I just got back from the annual Fraud Conference put on by the Association of Certified Fraud Examiners. We were in Boston, and as usual, the sessions were fabulous. In terms of the sessions I had, this was the best conference yet. So much value provided by really excellent speakers. Thanks to everyone who bought copies of Essentials of Corporate Fraud, especially those who made it to my book signing at the Wiley booth!

Yesterday Fox Business interviewed Joe Wikert, a blogger and Vice President and Executive Publisher at John Wiley & Sons (the company that published my book!) Take a look at what Joe has to say below. I agree with him – Book publishing is not going away. It’s simply changing to capitalize on changes in the industry, especially as they relate to technology like Amazon’s Kindle.

Written by QuixtarIsACult

Have you ever had an invite from a friend, associate, or a stranger that left you in the lurch wondering just what the invite was all about? Maybe, just out of the blue, an old acquaintance that you have not seen since high school calls you up and invites you to see something that is so important that you absolutely must do it! Your old friend is very vague about just what this “something” is.

Even if you become suspicious and ask if it is “Amway?” Your friend might respond and say something like this: “I can’t really talk about it over the phone; you will just have to see this for yourself.” Your curiosity has been piqued.

Another letter opposing the FTC’s Business Opportunity Rule was submitted by MLM attorney Gerry Nehra. His problem in this letter? The fact that there are many companies that would have to comply with the rule and the FTC cited the wrong number! Why would it matter if there are 150 or 1,500 companies that are multi-level marketing schemes? If they need to be regulated, they need to be regulated, no matter how many there are!

I thought it might be some fun to do a little research on Gerald Nehra, the attorney for Shop To Earn, who likes to intimidate bloggers who write negative reviews of MLMs. I found this item from Nehra, in response to the FTC’s proposed Business Opportunity Rule.

The rule is unlikely to be enacted in any form that will do something to stop the abuses by multi-level marketing companies. Nonetheless, these comments are fun to read. Nehra’s biggest complaint in this note? The fact that it will take time to comply with the rules! Heavens, no!

This was written by TerminatedRamp, of Usana (NASDAQ:USNA) stock message board infamy:

Understanding USANA’s Pyramid Scheme is Key To Financial Freedom

If you want financial freedom, then understanding how USANA is a pyramid scheme can help you avoid losing thousands of dollars.

All MLM companies admit that in a pyramid scheme, distributors are paid commission for signing new distributors up. The commission would come from the $20-$40 fee that new distributor pays to become a distributor. USANA avoids this and claims they are a legitimate business opportunity and not a pyramid scheme. Ok, so that must mean USANA is not a pyramid, right? Wrong.

Blatant acts of consumerism are occurring all over the internet. Far and wide, bloggers are banding together to spread the word about multi-level marketing attorney Gerald Nehra threatening bloggers on behalf of his client, Shop To Earn.

It all started a few weeks ago when blogger Everyday Finance wrote a post about the ShopToEarn and ShopToEarth program. He highlighted both positives and negatives that he found with their MLM program. It wasn’t long before he got a cease and desist email from Gerry Nehra (former attorney for mlm giant Amway), threatening legal action if he didn’t take down his negative comments about the company.

ShopToEarn is a multi-level marketing company recruiting new members who can receive a small percentage of cash back on their internet purchases. If they recruit enough new people into the scheme, who pay the $450 fee and do some shopping of their own, they can make a little more money.

I have a dim view of this program, and so does Everyday Finance. The blogger at Everyday Finance was threatened by MLM attorney Gerald Nehra about posting his opinions on the company. The blogger amended parts of his original article, making it very clear that he was citing personal opinions (both good and bad) about the program. I got my own cease and desist letter this week from Gerry Nehra and Shop To Earn.

Earlier today I reported that I had been threatened by Gerald Nehra, attorney for multi-level marketing company ShopToEarn for writing about my opinions on the company here. I am not the first blogger that he and Shop To Earn have threatened, and the threats continue.

The blogger writing Everyday Finance has been threatened more than once by Gerry Nehra because he posted his personal review of Shop To Earn and the ShopToEarth program. He had some concerns about the program, the Shop To Earth products, how commissions are paid out, and the MLM structure. I quoted from his analysis here. He found some positives and negatives with the program.

More threats have been issued to this blogger, so he now has this posted on his blog: