Report on Pre-Paid Legal Services, Inc.

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A report on Prepaid Legal by expert Robert FitzPatrick, nationally recognized by both law enforcement and the private sector, where he concludes: “Pre-Paid Legal Services Inc. is not a direct-selling company but a bogus ‘business opportunity’ scheme in which money is transferred from hundreds of thousands of consumers who are falsely lured to invest time…

Create a Multi-Level Marketing Company in Ten Easy Steps

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Hundreds of thousands of Americans get sucked into Multi-Level Marketing (MLM) companies each year. From Mary Kay to Amway to Herbalife to PrePaid Legal, the list is seemingly endless. Each offers its own special spin on the products it sells, but the main focus of an MLM is on recruiting new members. MLMs live and…

Fraud Discovery Institute Ends Investigation of Medifast Inc.

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UPDATE: On February 17, 2010, Medifast Inc. filed suit in US District Court, Southern District of California, alleging defamation, violation of California Corporations Code, and unfair business practices. On March 29, 2011, Judge Janis Sammartino dismissed all of Medifast’s claims against me in her ruling on my anti-SLAPP motion. In mid-2009, Barry Minkow and Fraud…

Does This Describe Your MLM?

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Kevin Thompson hires himself out to multi-level marketing companies to give them legal counsel. Supposedly he knows his way around the legality of MLMs, just like my buddy Gerry Nehra supposedly does. So I was perusing Kevin’s website and came across this interesting diatribe about what separates “legitimate” MLMs from illegal pyramid schemes. I’ve written…

You ask Google, I answer

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Question: What happens if skip an IRS audit? Answer: The IRS will pick a number and tax you based upon that. The number they pick is designed to be painful, in the hope that you will be “encouraged” to cooperate. It’s never a good idea to skip an audit. You look uncooperative and that doesn’t…

MonaVie: Scam or Not?

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The scheme: Typical multi-level marketing company, using the guise of “direct sales” to make the business look like a legitimate retail venture. The reality is that it’s nothing more than a recruiting scheme like Usana, Mary Kay, Arbonne, PrePaid Legal, Primerica, Herbalife, United First Financial, and so many other companies that make big promises to…

Lying in Business is Not Compartmentalized (Herbalife, NYSE:HLF)

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White collar criminal Barry Minkow has been investigating multi-level marketing schemes such as Usana Health Sciences, Herbalife Ltd., and PrePaid Legal. One of the most recent revelations by Minkow and his Fraud Discovery Institute was that the president of Herbalife, Gregory Probert, did not have the MBA he and the company claimed in SEC filings.…