CheckMate Investigative Services Inc. Report on Ladd McNamara

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CheckMate Investigative Services Inc.

Thursday, April 12, 2007

Re.: Ladd Ryan McNamara and supplementary information with regard to Denis Waitley and Sanoviv Foundation Inc.

Ladd Ryan McNamara

General background information
The search subject utilizes social security number 5xx-xx-xxxx (redacted for privacy reasons), which is a valid number sequence originally issued in the state of California between the years 1973-1974. No other social security or tax identification number was found to be associated with the subject. A possible date of birth of 11/29/1958 appears in our files.

The most recent reported address for the subject is 1781 Via Allena, Oceanside CA 92056. It should be noted that the subject utilized this address to form a California corporation on 02/13/2007 (see additional information later in this report). Other reported current and/or historical mailing addresses include: 185 Shady Grove Lane, Alpharetta GA 30004; 3965 Brookline Drive, Alpharetta GA 30022; 2479 Deseret Drive, Powell OH 43065; 2362 Carriage
Road, Powell OH 43065; 3400 Old Milton Parkway, Alpharetta GA 30005; 1807 Esters Road, Irving TX 75061; and 2100 Habersham Marina Road, Cumming GA 30041.

Marital status
According to published and database information, the subject was married to Deborah Irene Waitley (McNamara), who is reported to be the daughter of Denis Waitley, a spokesperson for Usana Health Sciences Inc. (“Usana”). However, the search subject appears as the petitioner in a dissolution of marriage action filed on 10/11/2005 in the San Diego County Superior Court, under docket number DN139160, and accordingly, it is believed that the marriage has ended.

Adverse public record information
According to information received from the U.S. Bankruptcy Court, for the Northern District of Georgia (Atlanta), the subject filed a voluntary Chapter 7 bankruptcy on 11/05/2004, under petition number 04-78571. The co-debtor was the subject’s spouse, Deborah Irene Waitley-McNamara. The trustee assigned to the case was Neil C. Gordon, of the law firm of Arnall, Golden and Gregory LLP, of Atlanta.

In the bankruptcy petition, the subject listed income for the calendar year 2004 (to the date of the petition) of $24,000; for 2003, $26,000; and for 2002, $24,489 [Statement of Financial Affairs, page 1 of 11).

The subject listed a monthly income of $1,000 as a self-employed consultant, and the subject’s wife, Deborah, listed a monthly income of $6,020 as a Network Marketing Distributor for Usana Health Services [Schedule I – Current Income of Individual Debtor(s)].

Professional licensing
According to published information, the subject graduated from the University of Texas Southwestern Medical School at Dallas, and completed his residency training in obstetrics and gynecology at the George Washington University Medical Center in Washington, DC. The subject was formerly licensed as a physician in the state of Georgia under license number 36573, which was issued on 02/04/1993 (see additional information below).

According to the State Medical Board of Ohio, the subject is currently licensed in Ohio as a physician under license number 35-081069, which was issued on 05/03/2002. The subject currently holds a Drug Enforcement Agency (DEA) Controlled Substances registration, number BM304xxxx (redacted for privacy reasons), which is valid through 01/31/2010 for all of the usual classes of prescription medications (Schedule 2, 2N, 3, 3N, 4 and 5).

Disciplinary actions
According to information received from the Composite State Board of Medical Examiners of Georgia, the subject voluntarily surrendered his license to practice medicine in Georgia on 10/07/2004.

In a notarized statement signed by the subject on the above date, he states:
[McNamara – Voluntary Surrender] “I hereby acknowledge that this surrender shall have the same effect as a revocation of my license …”

[continued] “I understand that this document will be considered to be a public record entered as the final disposition of disciplinary proceedings presently pending or which could be brought against me, …” {emphasis added}

Formation of California corporation
According to information received from the California Secretary of State, the subject formed a corporation in California on 02/13/2007 under the name of Ladd McNamara, M.D., Inc. The corporation is registered under filing number C2968999, and the business address is listed as 1781 Via Allena, Oceanside CA 92056.

The existence of the corporation can be verified at the Secretary of State business search portal at
http://kepler.ss.ca.gov/list.html.

Medical licensing in California
As indicated above, the search subject is currently licensed as a physician in the state of Ohio. In the course of this investigation, one of our investigators made telephone contact with the Medical Board of California (telephone 916/263-2382). A representative of the Board conducted a search of their records, and informed our investigator that the subject does not currently hold a license as a physician in California. Similarly, a search conducted at the Board’s internet web site at http://www.mbc.ca.gov/Lookup.htm failed to identify the subject as a current licensee.

In the course of the telephone conversation, our investigator broached the matter of a “hypothetical” individual, who is not licensed as a physician in California, forming a California corporation in their own name, using the designation “MD” (Medical Doctor) as part of the name of this entity. The representative (“Monya”) indicated that, based on her first impression, such an action would be contrary to the regulations of the Board, however, she asked our investigator to wait while she conferred with a senior staff member in the licensing division. When she returned, the representative stated that her senior colleague had advised that one must be a physician licensed in California to form a California corporation using the professional designation, M.D., as part of the name of the entity. According to their rationale, when one forms a corporation in a particular state, there is an implied inference or understanding that the entity intends to conduct business in the state of incorporation. By using the designation, M.D., the representative stated that there is an inference that the entity is authorized to conduct business as a medical practice in the state, a profession that is solely restricted to licensees of the Medical Board of California.

The web site for the Medical Board of California provides links to the California Business and Professions Code. The regulations may be viewed at http://www.leginfo.ca.gov. Some sections of the Code include:

[§2050 The (California) Division of Licensing shall issue one form of certificate to all physicians and surgeons licensed by the Board which shall be designated as a “physician’s and surgeon’s certificate”

[§2054(a)] Any person who uses … the initials “M.D.”, … , or holds himself or herself out as a physician and surgeon, … , without having at the time of doing so a valid, unrevoked, and unsuspended certificate as a physician and surgeon under this chapter, is guilty …”

The legality and/or propriety of one forming a corporation in California, using the designation M.D., without being a physician licensed in California, is certainly beyond the scope of our expertise, and accordingly, we would suggest that any inquiries of this nature be referred to your legal counsel for their professional opinion.

Denis E. Waitley
In our written report of 03/28/2007, we revealed that, as a result of our investigation, the subject, Denis E. Waitley, had not graduated from the Naval Post Graduate School with a Masters degree in Organizational Development as was shown in various government and regulatory filings of Usana Health Sciences Inc.

This was later confirmed in a press release by Usana, which stated:
“Dr. Denis Waitley has decided not to stand for reelection to the USANA board of directors. Dr. Waitley recently informed USANA that an error appeared in his biography listed in the Company’s proxy statement and that he did not in fact earn a masters degree in Organizational Development from the Naval Post Graduate School in Monterey, California.”

In the course of additional inquiries with regard to the subject, two web sites were found that list a Masters degree in Semantics. These sites are http://premierespeakers.com/denis_waitley/bio and http://www.lifeskillsalliance.com/our-team/denis-waitley.htm.

Extensive database searches were conducted in an effort to confirm this information, however, we were unable to identify an accredited institution of higher learning that granted such a degree to the subject. Curiously, the above Masters degree does not appear in the biography on either of two web sites maintained by the subject, namely http://www.waitley.com and http://www.deniswaitley.com.

Sanoviv Merger Corporation and Sanoviv Foundation Inc.
In the course of our inquiries with regard to various business entities which may be associated with the officers and/or principals of Usana Health Services, we obtained a copy of a document, “Articles of Merger”, which was dated 08/31/2004. The document which was filed with the Secretary of State of Georgia, under docket number 042590413 and control number K914043, indicates that a merger took place effective 09/13/2004 between Sanoviv Merger Corp., which is listed as a California corporation and the surviving entity, and Sanoviv Foundation Inc., a Georgia non-profit corporation and the non-surviving entity.

Database searches were conducted at the web site of the Georgia Secretary of State, namely at http://corp.sos.state.ga.us/corp/soskb/CSearch.asp, and their files confirm that the entity, Sanoviv Foundation Inc., was registered as a non-profit corporation and that it was merged-out on the effective date shown above, namely 09/13/2004.

Searches were then conducted in the state of California at the Secretary of State’s web site, http://kepler.ss.ca.gov/list.html. Curiously, no record of Sanoviv Merger Corp. was found using the state web search facility. Two entities with similar names, Sanoviv Foundation Inc. (formed 09/22/2004) and Sanoviv Inc. (formed 02/16/2000) were found, but to reiterate, no record was found for the surviving entity listed above, Sanoviv Merger Corp. However, we also obtained a copy of the Articles of Incorporation of Sanoviv Merger Corporation, which were filed with the Secretary of State of California on 09/22/2004, under registration number 2676401. In examining the web database profile for Sanoviv Foundation Inc, it too was formed on 09/22/2004 under registration number 2676401. Accordingly, it would appear that for some yet to be determined reason, Sanoviv Merger Corporation and Sanoviv Foundation Inc. appear to be one and the sameentity, perhaps due to a corporate name change that was not immediately reflected in the entity’s profile on the state web site.

Searches were then conducted at the Internal Revenue Service web site to determine if Sanoviv Foundation Inc. is listed in Publication 78, which is the list of organizations eligible to receive tax-deductible charitable contributions. A search of the web site, http://apps.irs.gov/app/pub78, which is current as of 12/31/2006, found no record of the firm being registered under Publication 78. A search of the recent subsequent additions to this cumulative list at the web site, http://www.irs.gov/charities/article/0,,id=96291,00.html found no listing for the subject entity.

Searches were then conducted using the databases of GuideStar, which contains searchable data from Internal Revenue Service Forms 990 (which are filed by federally tax-exempt organizations) and the Internal Revenue Service Master Business File. A description of the services provided by GuideStar can be found at the site, http://www.guidestar.org/about/index.jsp?source=dnabout.

Searches were conducted at their search portal, http://www.guidestar.org/index.jsp, using the name “Sanoviv”, however, no matches were found.

Accordingly, we were unable to confirm if Sanoviv Foundation Inc. or Sanoviv Merger Corporation are currently registered as a federally tax-exempt organization with the Internal Revenue Service.

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