Things couldn’t get any worse for villain of the year, Roca Labs. This company sells industrial goop, designed to help you pretend you’ve had gastric bypass surgery. Never mind the consistency of it, the potential dangers to your body, or the untruths in the company’s marketing.
Robert FitzPatrick of Pyramid Scheme Alert is bombarded every week by consumers who want to ask him, “What about this MLM?”
You see, the marketers of multi-level marketing companies have gotten very savvy. They know that plenty of us have figured out their con game. They now have consumers convinced that theirs is “one of the good ones.” They’ve convinced consumers that they’ve seen the “bad” MLMs, and that theirs is surely one of the “good” MLMs. (Yet they never tell consumers which ones are the “bad” ones, do they? Why is that?)Continue reading
Do you think it’s only the “bad” people who do bad things in multi-level marketing? Those who frontload new recruits, dial for dollars at the end of the month (i.e. get people to order products they don’t need), talk only about their highest commission check, lie about how profitable the MLM is for them, or hide the debt they incurred via their MLM?
Unfortunately, these problems are systemic in multi-level marketing. These are the things that must be done to get to the upper levels and to stay there. What about those “national sales directors” or “diamond executives” or “founders sapphires”??? They’ve just done more frontloading and general deception. They all lie. It is how things are done in MLM.
Listen to this former Mary Kay sales director, who was only a step away from becoming an national sales director when she walked away. On ABC’s 20/20, she explained how her “success” was at the expense of other women.
Nearly every lawsuit has a financial component to it. In many cases, the issues surrounding the numbers have high stakes. Cases involving securities fraud, money laundering, tax fraud, investment fraud, and Ponzi schemes rely on an accurate tabulation and evaluation of the numbers. To take the numbers as provided by the other side at face value, however, would be a huge mistake.
In fact, there is almost always a story behind the numbers. A case may very well be won or lost based on the ability to find out the story, which is often hidden from view. How, then, can a party best get to the truth?Continue reading
Over 9 years ago, I started the website “Pink Truth” to help educate consumers about the truth behind Mary Kay Inc. Four long-time Pink Truth members were interviewed at length for they story. They were all sales directors, and therefore part of the “top 2% of Mary Kay.” These women are part of the Mary Kay Cosmetics success story. Or are they? The truth is that the majority of the sales directors are barely making a minimum wage living, while some of them are actually losing money.
This story digs into the Mary Kay con that has been crafted and refined for over 50 years. Please take the time to watch this story. And if you have any friends or family involved in multi-level marketing, please encourage them to watch too.
One often overlooked key to successfully working with an expert witness is the protection of privilege and work product. Until the expert is actually disclosed to the other side, it’s in the best interest of the client to make sure that the expert’s work is protected.
While no airtight accountant-client privilege exists, it is still possible to protect communications when an accountant (or other expert) is working with an attorney on a litigation matter.Continue reading
What documents must be obtained in a divorce proceeding when your forensic accountant needs to evaluate and investigate the income of the parties? In the below video, Tracy Coenen lists some of the basic documents that are needed to analyze wages, self-employment income, and investment income.
Financial investigations have one common problem: Large volumes of data and documentation that need to be examined.
Cases such as corporate embezzlement, securities fraud, Ponzi schemes and white-collar crime often have lots of financial documentation that needs to be analyzed by a forensic accountant.
Many of these types of cases involve moving money around rapidly between multiple bank and brokerage accounts to disguise the true sources and uses of funds. The long trail of financial documentation needs to be examined by a forensic accountant and the data must be pieced together to form a winning strategy.Continue reading
Lifestyle Analysis For the employee who is receiving cash in lieu of a real paycheck or who is otherwise concealing wages and earnings, it can be very difficult to prove the case. Cash doesn’t leave much of a trail, and a company that is willingly participating in a fraud like this isn’t likely to offer up proof of the fraud either.Continue reading