Citron Research: Usana Health Sciences Operating Illegally in China

Allegations of cheating in China are nothing new for Usana Health Sciences (NYSE: USNA).  In 2007, the Fraud Discovery Institute accused Usana of doing business illegally in China.  The country has very strict laws against multi-level marketing (MLM). It is strictly forbidden. Yet for years Usana has been getting around …

Is Usana Running an Illegal Pyramid Scheme?

All good multi-level marketing companies have one thing in common: They fail to disclose enough information to allow consumers and regulators to determine if they are in the business of recruiting or selling products. They disclose just enough facts and figures to make it appear that they are being transparent. …

Xyngular: Starve, Binge, Purge, Repeat!

Multi-level marketing companies are getting lots of attention lately thanks to the Bill Ackman smackdown of Herbalife in December. MLMs offering “nutrition products” are of special interest to consumers, and with good reason. Companies like Isagenix, MonaVie , Usana, Mannatech, and Shaklee all offer magic potions that claim to help …

Is Multi-Level Marketing a Legitimate Business Method?

Defenders of multi-level marketing (MLM) are often heard saying that it’s a legitimate business method! Even government regulators say MLM is legitimate. And it is true that state and federal governments in the United States generally allow multi-level marketing companies to operate with little oversight. This is despite the fact …

Are Herbalife and FHTM Similar?

With yesterday’s shutdown of Fortune Hi Tech Marketing, consumers have been asking if Herbalife is a similar operation. Last year Herbalife’s business model was called into question by David Einhorn, and then the company was accused of being a pyramid scheme by Bill Ackman. Naturally, Herbalife denied being a pyramid …

Fortune Hi Tech Marketing Pyramid Scheme Shut Down

Fortune Hi Tech Marketing (FHTM), a multi-level marketing company I’ve reported on previously (and was interviewed about) was shut down today by the Federal Trade Commission. It is being reported that federal agents raided the company’s Lexington, Kentucky office. Law enforcement says that 100,000 people across the country were recruited …

More on Herbalife, Bill Ackman, and Law Enforcement

As we patiently wait for Herbalife’s “analyst and investor meeting” on January 10 to address the pyramid scheme allegations made by short seller Bill Ackman, there is plenty of good discussion of HLF around the world wide web. Kid Dynamite said Bill Ackman is wrong about Herbalife, citing that: HLF  …

Medifast Take Shape For Life: Endless Chain?

A recent filing in the Medifast appeal (the case in which Medifast sued me and others, and lost miserably) raises some interesting questions about whether Take Shape For Life (TSFL) is an endless chain recruitment scheme. From that filing: A. Medifast’s Evidence Does Not Prima Facie Show That FitzPatrick’s “Endless …