mlm scam

Medifast and Take Shape For Life: Appeals, Pyramid Schemes, Truth, and Lies

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Yesterday my attorneys filed my response to the appeal in the lawsuit brought against me by Medifast, Inc. for my non-defamatory writings about the company and its Take Shape For Life multi-level marketing business. Medifast sued me on February 17, 2010, lied repeatedly to the court about my writings leading up to the lawsuit, and ultimately the judge dismissed me from the lawsuit on March 29, 2011.

You can read an important filing related to our anti-SLAPP motion here, which details what did and did not happen prior to the lawsuit. Medifast is appealing my dismissal from the lawsuit. Below is our response to Medifast’s appeal, and a pdf of the filing is found here.

My favorite quote from the brief: “Medifast claims that Coenen published false information, but it is Medifast that continues to make false accusations against Coenen.”

Read moreMedifast and Take Shape For Life: Appeals, Pyramid Schemes, Truth, and Lies

Inline Marketing Scam: Same MLM Scam, Different MLM Name

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Through the years, multi-level marketing companies and MLM distributors have played a clever game of changing the wording to hide the truth. MLM activities have been referred to as direct sales, dual marketing, network marketing, multilevel marketing, consumer direct marketing, affiliate marketing, seller assisted marketing scams, home-based business franchising, and referral marketing. (Skeptics refer to this “business model” as pyramid selling, pyramid schemes, pyramid scams, endless chain recruiting, and Ponzi schemes.)

Why all the names? To confuse potential customers and recruits. These companies know negative impressions are associated with multi-level recruiting and sales. So if they can change the name, maybe they will get to people who would otherwise be turned off by the name MLM.

Read moreInline Marketing Scam: Same MLM Scam, Different MLM Name

Even an MLM Scammer Says MLMs Are Scams…

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stairsWho do you trust? That’s an issue that often arises for the former CFO of Crazy Eddie, Sam Antar. He’s been writing extensively about the financial statement fraud at Overstock.com, and has been dismissed by some as a con artist with ulterior motives.  But Sam has been vindicated, as Overstock.com has announced another restatement of earnings, meaning the company has a full decade of inaccurate financial statements now on file with the SEC. (Thankfully, the officers and directors of Overstock.com don’t have to take any responsibility for repeated misstatements of the financials, and are still getting health bonuses!!!!)

Read moreEven an MLM Scammer Says MLMs Are Scams…