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

Tracy Coenen on Don’t Try a Do-It-Yourself Fraud Investigation: “Nice to hear from you Jonathan!” Dec 19, 08:37

Jonathan T. Marks, CPA, CFF, CFE on Don’t Try a Do-It-Yourself Fraud Investigation: “Amen! Valuable Advice.” Dec 18, 07:40

Tracy Coenen on Primerica Financial Services: The Fake Job Interview: “LOL Stacy. People keep saying Primerica is MLM because it IS an MLM. People are recruited into multiple levels in…” Dec 10, 12:49

Tracy Coenen on WorldVentures Pyramid Scheme Lawsuit: “Hilarious! I just found what you’re talking about. 2 failing MLMs become ONE failing MLM.” Dec 10, 12:46

wendy stovern, WV member on WorldVentures Pyramid Scheme Lawsuit: “Ironically among WV reps is the word “bankruptcy” and company takeover ie; new entity is “Seacret” claiming ownership. Only months…” Dec 9, 23:47

Stacey on Primerica Financial Services: The Fake Job Interview: “Primerica is a brokerage not a MLM. I’m not sure why the internet continues to say PRI is MLM. It…” Dec 9, 13:22

Tracy Coenen on Fifteen Frightening Facts About Usana Health Sciences: “I haven’t kept up with Usana, but all MLMs are bad. The products are no better than what you can…” Dec 9, 08:36

nana abdullah on Fifteen Frightening Facts About Usana Health Sciences: “Hi Tracy, this article is written in 2008. I wonder what is your view towards USANA company governance in recent,…” Dec 9, 07:49

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insider stock sales

Herbalife Red Flags for Fraud Issued

Usana’s Bradford Richardson Continues to Dump Shares

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