Medifast Lawyers Continue to Lie to the Court

UPDATE: On February 17, 2010, Medifast Inc. filed suit in US District Court, Southern District of California, alleging defamation, violation of California Corporations Code, and unfair business practices. On March 29, 2011, Judge Janis Sammartino dismissed all of Medifast’s claims against me in her ruling on my anti-SLAPP motion.

The Medifast (NYSE:MED) lawsuit against Barry Minkow, Fraud Discovery Institute, me, Robert FitzPatrick, William Lobdell, and others marches on. Yesterday, the Medifast lawyers filed an amended complaint in the case. The passage of time has not made Medifast or its lawyers more honest, however, as the amended complaint repeats factual inaccuracies (those are called lies in my world) and even expands on them.

Grab a cup of coffee and kick up your feet while you read the amended complaint. The document now alleges a civil conspiracy related to Medifast’s Take Shape for Life (TSFL) division, and repeatedly refers to the defendants as co-conspirators. I can’t speak for the other defendants, but I certainly know that I conspired with no one. I simply performed services for a paying client, and I wrote about Medifast on this blog in a continuing effort to advance the discussion of the pitfalls of multi-level marketing.

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Maybe Auditors Aren’t as Smart as They Want You to Think They Are

Francine McKenna over at re: The Auditors has a nice piece about Dan Stulac, a former Arthur Andersen partner who was in charge of the Peregrine Systems audit. Dan used the “I was duped” defense in his criminal case (charges of conspiracy, securities fraud, and wire fraud).

The charges against him were dismissed by a judge. Will someone like this ever get a job again? After all, his defense attorney apparently spent quite a bit of time proving that he doesn’t know much.

Read moreMaybe Auditors Aren’t as Smart as They Want You to Think They Are

Jeffrey Skilling of Enron fame asks for a new trial

Jeffrey Skilling, the former CEO of Enron is appealing his federal conviction and arguing that his 24 year sentence is unconstitutional. In May 2006, Skilling was convicted of 19 counts of fraud, conspiracy and insider trading in the Enron case. The former chairman of Enron, Kenneth Lay, was convicted of many counts in the same … Read more Jeffrey Skilling of Enron fame asks for a new trial

Milberg Weiss Partner Pleads Guilty

David Bershad, former senior partner at Milberg Weiss & Bershad LLP, has pleaded guilty to conspiracy in federal court. He admitted to concealing secret payment agreements with plaintiffs in class action suits, and will forfeit $7.75 million and pay a $250,000 fine. Bershad could receive up to five years in prison, but if he cooperates in the prosecution of others, he will likely serve less than that.

Read moreMilberg Weiss Partner Pleads Guilty

Ernst & Young Indictment Unsealed

Last week, the U.S. Atorney’s office unsealed an indictment of Ernst & Young tax partners. The indictment alleges that Robert Coplan, Martin Nissenbaum, Richard Shapiro, and Brian Vaughn created and marketed tax shelters which were fraudulent, for use by individuals with taxable income in excess of $10 or $20 million. The tax shelters were created … Read more Ernst & Young Indictment Unsealed

Deferred Charge Against KPMG is Dismissed

A deferred criminal charge against KPMG related to the sales of tax shelters has been dismissed by a federal judge. In August 2005, a deferred prosecution agreement was agreed to by the parties in the case against KPMG, which accused the audit firm of creating and selling the tax shelters to help people avoid paying … Read more Deferred Charge Against KPMG is Dismissed

Jeffrey Skilling Gets a Long Prison Sentence

Today a federal judge sentenced former Enron executive Jeffrey Skilling to 24 years and 4 months in prison for his conviction on federal charges of conspiracy, fraud and insider trading. Skilling, 52, was also fined over $18 million for his crimes. He was denied bond while waiting to report to prison, and instead is on … Read more Jeffrey Skilling Gets a Long Prison Sentence

Milberg Weiss Indicted on Charges of Conspiracy to Give Kickbacks in Class-Action Cases

The New York based law firm of Milberg Weiss Bershad & Schulman was indicted in Los Angeles yesterday for twenty years of activities, including a conspiracy to give kickbacks to lead plaintiffs in securities class-action cases. It is alleged that the fraud included payment of over $11 million in kicbacks, disguised as referral fees or other legitimate payments.

Included in the charges are conspiracy, racketeering, mail fraud, money laundering, and filing false tax returns. Melvyn Weiss, a co-founder of the firm, is not named as a defendant, but partners David Bershad and Steven Schulman are.

Read moreMilberg Weiss Indicted on Charges of Conspiracy to Give Kickbacks in Class-Action Cases