medifast fraud

More than a year ago, Medifast Inc. (NYSE:MED) sued me, my company Sequence Inc, Barry Minkow, his company Fraud Discovery Institute, Robert FitzPatrick, William Lobdell, and an anonymous message board poster for defamation. Barry Minkow and FDI initiated an investigation of the company in 2008, and the rest of us researched the company and contributed our opinions to FDI’s reports on the company and its multi-level marketing division Take Shape For Life (TSFL).

We criticized the company and its MLM business model. We expressed negative opinions about the disclosures Medifast makes about this “business opportunity.” I dared to suggest that Medifast might be a weight loss pyramid scheme.

A year after the first report on the company was released by FDI, Medifast sued us for $270 million, alleging defamation, criminal conspiracy, unfair business practices, and market manipulation. The defendants each filed anti-SLAPP motions, basically saying that Medifast was attempting to silence critics in violation of our First Amendment rights. Continue reading

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.

Robert FitzPatrick filed an absolutely riveting anti-SLAPP motion in the case brought against us by Medifast Inc. (NYSE:MED) and its Take Shape For Life (TSFL) multi-level marketing division. Below is probably the most interesting part of the filing. It discusses at lengthy the shady past of the company, efforts to improperly conceal the prior bad acts, and current dishonesty about Medifast and TSFL. It seems that lying to the court has become routine for Medifast.

Proof that Medifast’s Complaint should be viewed as a SLAPP suit arises out of Plaintiffs’ false, self-serving and misleading allegations, devoid of any facts, as well as Plaintiffs’ fraudulent concealment of relevant facts that show what kind of history Medifast and its predecessor companies carry with them, but do not disclose to the public or its stockholders despite orders to do so by the FTC. Continue reading

Hannah Johnson on MLM Income Disclosure Statements: “Thank you for putting this together! Am hoping to make some visualizations of the data here to tell the story…” May 26, 17:31

Penny Rogers on Xyngular Works: Losing Weight Fast!: “Weightloss surgery at its finest” May 25, 23:32

jmills616 on 10 Steps to Starting Your Own MLM: “Thank you Tracy. My mom was taken advantage of by USANA by the toon of $20+K. MLM is evil.” May 24, 19:59

james stanley on A New Pyramid Scheme: United First Financial: “I was looking into this and the opening statement was, “everyone’s cost for MMA is different.” yet all videos show…” Apr 22, 13:58

Tracy Coenen on Mary Kay Cosmetics: Destroying Half a Million Women a Year: “Monique – Where did you come up with the idea that “most women could not work” when COVID started? Millions…” Apr 15, 19:30

Monique Jose Duvall on Mary Kay Cosmetics: Destroying Half a Million Women a Year: “So many women in 2020 and 2021 becoming consultants and becoming successful. My director does not advocate buying inventory unless…” Apr 14, 16:17

Tracy Coenen on Xyngular: Starve, Binge, Purge, Repeat!: “Not true, Hannah. First, this article was written in 2013, and at that time, the program had no meals whatsoever.…” Apr 13, 10:48

Hannah on Xyngular: Starve, Binge, Purge, Repeat!: “Absolutely incorrect information! In the 8-day you eat 5 times a day every day, no starving or binging! And this…” Apr 13, 00:21

Fraud Files Forensic Accounting Blog

Commentary on fraud, scams, scandals, and court cases.

Medifast “Take Shape For Life” Lawsuit: Total Vindication for Tracy Coenen in SLAPP Suit

Deception About the History of Medifast and Take Shape For Life