Why Products Offered by Multi-Level Marketing Companies Are So Expensive

Multi-level marketing companies (MLMs) are nothing but legalized scams. Make no mistake… they are pyramid schemes, but the government allows them to operate. Why are these obvious Ponzi schemes (which, by the way, the MLMs will swear up and down they are not… thou doth protest too much) allowed to …

Multi-Level Marketing Income Disclosures

Some multi-level marketing (MLM) companies release income disclosures or earnings disclosures. These documents theoretically provide insight into how much distributors earn in commissions or overrides. However, the disclosures are generally worthless. What is more important than the information in these documents? The information that is not disclosed in the documents. …

Acquisition by Usana Health Sciences Gets Them Into China (Legally, This Time)

A few years ago, I was involved in an investigation of multi-level marketing company (MLM) Usana Health Sciences (NASDAQ:USNA).  One of the allegations that came out during that investigation was that Usana was illegally conducting business in China. China has strict laws against multi-level marketing, making it impossible for the …

Usana Health Sciences Knows it Products are Being Sold Illegally in China

Almost three years ago, Barry Minkow and Fraud Discovery Institute released a report on Usana Health Sciences (NSDAQ:USNA), listing ten red flags of fraud he and his team (which included me) uncovered about the company. The report criticized the company’s business model, essentially calling it a pyramid scheme in which …

Wondering Why Frauds at Public Companies Aren’t Being Pursued by the Feds?

Consumers are often left wondering why the Securities and Exchange Commission doesn’t heavily pursue allegations of fraud against public companies like Overstock.com (NASDAQ:OSTK), Usana Health Sciences (NASDAQ:USNA), Herbalife (NYSE:HLF), and the like. I’ve always said the answer is simple: There are not enough resources devoted to investigating and prosecuting fraud …

Usana Health Sciences and recruiting distributors in churches

If you’ve ever been involved in a multi-level marketing (MLM) company of any kind, you know that one of the favorite recruiting grounds is churches. Especially with companies that supposedly promote “Christian” values (like Mary Kay), the church is the logical place to find recruits. Sadly, many pastors have no …

Twin Pyramids: An Analysis of Distinctions and Points of Similarity between Usana Health Sciences and BurnLounge, Inc.

Introduction Behind Different Masks, the Same Face Two companies, BurnLounge Inc.(1) and Usana Health Sciences, are in the spotlight of federal regulators, investors, fraud investigators and business journalists. The fundamental legitimacy of each company is in question. Both are being called calculated and sophisticated frauds. Tens of thousands of consumers …