With the recent settlement of the lawsuit Usana Health Sciences (NASDAQ:USNA) filed against Barry Minkow and Fraud Discovery Institute, the company’s stock price got a nice little boost. And just in time for retiring CFO Gil Fuller to cash in some of his stock options for a tidy little profit of more than $1.2 million.
Like I’ve always said, the real winners in multi-level marketing are the owners and executives (who own via stock held and stock options). These guys get rich at the expense of tons of little distributors who lose hundreds or thousands of dollars “investing” in these scams.
Utah Business magazine should be ashamed of itself. Its first ever “CFO of the Year” award went to Gil Fuller, the CFO of Usana Health Sciences (NASDAQ:USNA) who lied about being a CPA. The lies were repeated over and over in SEC filings until Barry Minkow and Fraud Discovery Institute revealed that in fact, Fuller was not a licensed CPA as he had represented.
Details about the award were reported in a Usana press release: Continue reading
Another top executive is caught lying about his credentials, but we’re supposed to think it’s no big deal. First it was Usana Health Sciences (NASDAQ:USNA) board member Denis Waitley lying about his college degrees. Then it was Usana CFO Gil Fuller lying about being a CPA. Then it was Usana exeuctive Timothy Wood lying about his college degree.
Now it’s the Herbalife (NYSE:HLF) president, Gregory Probert, lying about having an MBA from Cal State. But in typical multi-level marketing company (product-based pyramid scheme) fashion, you are urged to “pay no attention to the man behind the curtain,” in Wizard of Oz fashion.
As reported in today’s Wall Street Journal, the MBA degree was listed in at least 19 Securities and Exchange Commission filings. Probert’s excuse? Vanity. (No, we call that fraud, not vanity.) According to the article: Continue reading
See! Usana Health Sciences (NASDAQ: USNA) CFO Gill Fuller was right when he said that everyone was lying about their credentials (including him!).
The CEO of CellCyte (Public, OTC:CCYG) was recently busted for embellishing his resume, and the stockholders have paid dearly. Gary Reys, the co-founder and CEO of CellCyte Genetics was busted by The Seattle Times, who challenged the accuracy of statements in his biography on the company website.
The original biography on the website says, in part: Continue reading
This is from TerminatedRamp on the Yahoo message board for Usana. He raises an excellent issue. The IRS already has a generally dim view on multi-level marketing because the odds of turning a profit are less than 1:100 (1%). In order for business deductions on a tax return to be legitimate, the “business” activity must be done with the intent of making a profit and with a likelihood of profit. Doesn’t sound like a Usana distributorship meets these guidelines if you listen to Usana CFO Gil Fuller. Continue reading
This afternoon the Wall Street Journal ran a short piece entitled: “Probe Into Usana Officials Ends With Settlement.” Lots of people apparently got excited at this headline, and interpreted it as complete vindication for Usana Health Sciences.
Alas, nothing could be further from the truth. The SEC is still looking into the company.
This article deals with the fact that Usana’s CEO Gilbert Fuller and the board of directors “audit committee financial expert” Jerry McClaim both called themselves CPAs when they were not. Continue reading
Almost none of the business builders want to make money anyway, according to CFO Gil Fuller, so no one need worry. He says that only about 12% of Usana associates want to actually make any money, and only about half of those actually try to make money.
Here are a few of the facts that we know about Usana Health Sciences distributors:
- 67% never make one penny in commissions. That’s according to Usana’s own documents, summarizing 2006 commissions paid out. Continue reading