Lie About Your Credentials, Win CFO of the Year

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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

Irresponsible reporting about Usana by The Associated Press

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In an article today about the Usana Health Sciences (NASDAQ:USNA) buyout offer by Myron Wentz (Gull Holdings), the following inaccurate statement was made:

The Securities and Exchange Commission concluded during the first quarter USANA’s marketing model is not a pyramid scheme, but the stock has a short interest about 34 percent, meaning many investors are betting the stock will fall.

The SEC did not say that Usana is “not a pyramid scheme.” Nothing could be further from the truth, although company management would like you to believe that this is what the SEC said. Continue reading

Herbalife President: Well it’s ALMOST True….

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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

SEC Drops Informal Investigation into Usana Health Sciences

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Last week the Securities and Exchange Commission (SEC) informed Usana Health Sciences (NASDAQ: USNA) that it was closing its informal investigation into the company and taking no further action at this time. The pro-MLM camp has trumpeted this as a complete victory for Usana, proclaiming that the SEC basically said their business structure was completely legal and all was rosy at the company.

What does the letter from the SEC to Usana really mean? It means that the SEC is closing their investigation for now. Nothing more, and nothing less. Continue reading

Pyramid Scheme Alert Reflects on 2007

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Multi-level marketing will go down in history as one of the great frauds of our times. It deceptively wraps its harmful scam with the real needs and desires of people today – additional income, stay home with the family, independence, entrepreneurship, high income without high investment or training, and a group that will help you succeed. MLM is an Enron story, glossy and exciting to those who invest. But in the end, it causes massive harm, employs sophisticated deception, and it is corrupting our government.

MLM is an American-based “sales ” scam, and has spread to more than 70 other countries, just as Nigeria has spread its famous “bank account” scam worldwide. Continue reading

Government Officials in China investigating Usana

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FDI: China Government Issues Official Interrogation Notice on Usana Health Sciences Inc. Associate for Alleged Multi Level Marketing Activities in Nanning, the Capital City of the Guangxi Province in Mainland China

FDI also releases several new Web sites that demonstrate that Usana Health Sciences Inc. (NASDAQ: USNA) is recruiting Chinese nationals for multi level marketing in down lines that are literally from Malaysia to Mexico. Continue reading

Usana’s attorney D.J. Poyfair and the Quixtar lawsuit

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I find this interesting… D.J. Poyfair is the attorney representing Usana Health Sciences to the death against Barry Minkow. He is also the attorney who is representing a group of 15 “independent business owners” against Amway (Quixtar).

It appears as though Poyfair thinks Amway is an evil pyramid scheme, while Usana is …. oh, I don’t know… better? Less bad???

There was recently a hearing in California in the Quixtar IBO case, and there are a couple of interesting portions. Here’s one (bold added by me): Continue reading

Usana’s Bradford Richardson Continues to Dump Shares

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As previously reported, Bradford Richardson, Usana’s Executive VP of Asia Pacific has been doing some serious dumping of his Usana (NYSE: USNA) stock. Now that his stock is gone, it looks like he’s been exercising options and dumping those shares as well. He’s up to $2.4 million… what a nice payday!

Here’s the latest tally: Continue reading

Usana’s Bradford Richardson Unloads Another $600k of Stock

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Today Bradford Richardson sold $600,000 more of his Usana stock. He’s liquidating all of it. With only 400 shares of stock left, I think TerminatedRamp has this one right…. Bradford Richardson, Usana’s Executive VP of Asia Pacific is going to be the sacrificial lamb. Barry Minkow and Fraud Discovery Institute released Cheating in China last month, detailing how Usana corporate employees are knowingly and willingly violating Chinese laws against multi-level marketing.

About the only way Usana can get out of this one is to offer up a sacrificial lamb. Make Richardson the one who was responsible for it all. Get rid of him and vow to make things right in China. That’s really their only chance for survival. Continue reading

Fraud Discovery Institute Issues a Report on Herbalife

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Multi-level marketing company Herbalife (NYSE:HLF) is the target of the most recent investigation done by Barry Minkow and Fraud Discovery Institute. A new website, Doomed By Design has been developed, and a written report has been released. A short video clip is included, and a full documentary will be released later this year.

Herbalife is the world’s largest multi-level marketing (MLM) company. Barry Minkow and team found that the company is illegally doing business in China. Chinese laws prohibit multi-level marketing businesses from existing in China, and do not even permit their products in the country. Continue reading