Herbalife Red Flags for Fraud Issued


Disclosure: Barry Minkow is currently shorting Herbalife stock, and intends to short any stock he reports on in the future. Details found on page 3 of this document.

Today Barry Minkow and Fraud Discovery Institute released a list of the Top Ten Red Flags of Fraud at Herbalife, LTD (NYSE:HLF):

1. Nearly 70% of Stock Holdings Dumped:

Approximately seventy percent of senior managements stock holdings were dumped in 2008. While this promotional senior management team touted record earnings, sales and growth potential, it simultaneously dumped approximately 70 percent of their entire holdings. In 2008 alone, senior management dumped and subsequently received over $40 million and in 2007 over $130 million, for a stunning $170 million total. This is one of the most aggressive insider dumpings in recent history, when one simply compares the shares-sold to the percentage of total ownership. To solve the “no more to dump” problem, CEO Michael Johnson received additional stock options this week. Continue reading

Usana’s Bradford Richardson Continues to Dump Shares


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 Insider in Charge of Asia Pacific Unloads Tons of Stock After Minkow Exposes Company for Cheating in China


Insider: Bradford Richardson, Executive Vice President of Asia Pacific

Company Bio: Bradford joined USANA in December 1997 as executive director of international development, and from 1999-2005 held the roles of vice president of international development and vice president of international. In January 2006, he was appointed executive vice president of Asia Pacific, and currently has profit & loss responsibility for USANA’s operations in the Asia Pacific region. Additionally, Bradford is responsible for the definition and execution of USANA’s international expansion strategy. Continue reading