HealthSouth Founder Richard Scrushy Will Pay $81 Million to Settle SEC Claims

Richard Scrushy, founder of HealthSouth Corp. will pay $81 million to settle Securities and Exchange Commission claims. The payment includes $77.5 million in gains and a $3.5 million penalty, but he has already been credited with $71.5 million toward this for money he has already forfeited. Scrushy was charged with accounting fraud and insider trading … Read more HealthSouth Founder Richard Scrushy Will Pay $81 Million to Settle SEC Claims

CEO Pay: Fraud, Excessive, or None of the Above?

The issue of upper-level executive pay can raise the ire of many, as it might be hard to comprehend salary and benefits in the tens or hundreds of millions. It’s especially easy to rile up the masses if one compares CEO pay to the average pay of production workers. Of course, this exercise in demonstrating disparity can easily make one believe that executive pay and perks are excessive.

For some it’s a matter of equity between upper management and front-line employees. For others, such high pay must somehow be related to fraud and irregularities. But are these valid concerns? Shouldn’t the market decide? Who are journalists and economists to say that upper level executives shouldn’t be highly compensated?

Rules on Executive Pay
The Securities and Exchange Commission changed the rules regarding executive pay in 2006, which should lead to greater disclosure of information by public companies. The rules do not limit executive pay in any way; they just require certain disclosures to be made.

Read moreCEO Pay: Fraud, Excessive, or None of the Above?

Wal-Mart denies investigating stockholders

Wal-Mart is denying allegations that it investigated stockholders who submitted resolutions for the upcoming annual meeting. The Wall Street Journal reported earlier this month that Wal-Mart “directed its surveillance operations at critical shareholders,” citing a January 2007 memo. But CEO H. Lee Scott Jr. denies that the company investigated shareholders or conducted surveillance on them.

Former Qwest CEO guilty of insider trading

Joseph Nacchio, the former CEO of Qwest Communications International was found guilty of 19 counts of insider trading. He was acquitted on the other 23 counts charged.The crux of the Nacchio case was whether or not he knowingly and willfully sold Qwest stock while he had access to insider information. Nacchio said he did not … Read more Former Qwest CEO guilty of insider trading

The Usana earnings call: Things just don’t add up

Zac Bissonnette over at BloggingStocks has another great post about Usana Health Sciences. He listened to the earnings call on Wednesday, and seems to be just as surpised as I was. Surprised? Yes. Surpised that the executives (Dave Wentz and Gil Fuller) would go so far as to make certain apparent misrepresentations about the [tag]Usana[/tag] … Read more The Usana earnings call: Things just don’t add up

Gil Fuller, CFO of Usana, Says Almost No One Wants to Make Money in Usana Anyway

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:

More lies at Usana Health Sciences

Did you think I meant today’s earnings conference call? Well that deception will be discussed later.

Today I am pointing out the lack of a PhD on the part of Denis Waitley. The Wall Street Journal broke the story today:

Usana Health Sciences Inc., a multilevel marketer of vitamins and mineral supplements, says it has been unable to confirm that one of its directors, Denis Waitley, received a doctoral degree that he had claimed.

Read moreMore lies at Usana Health Sciences

More on Patrick Byrne, CEO of, by Sam Antar

Two weeks ago, Sam Antar wrote about CEO Patrick Byrne, and what happens to people who ask questions about the company, his management, and curious details about the company’s financial statements. This week Sam has a follow-up, detailing a timeline surrounding events related to Patrick Byrne, Judd Bagley (Director of Social Media at Overstock), … Read more More on Patrick Byrne, CEO of, by Sam Antar

Girls Gone Wild creator indicted on tax fraud

Joe Francis, the founder of the “Girls Gone Wild” video series has been charged with [tag]tax fraud[/tag] for deducting over $20 million in false business expenses on the 2002 and 2003 corporate tax returns of his companies Mantra Films Inc. and Sands Media Inc. The improper deductions included: $2.78 million to build a home in … Read more Girls Gone Wild creator indicted on tax fraud