On Monday, Barry Minkow and the Fraud Discovery Institute responded to Usana’s lawsuit with a brief report. This report cited 10 points that are highly relevant to the matter. In summary:

1. A current list of Usana distributors proves again that the bulk of distributors are at the bottom of the pyramid and receive little to no compensation. They don’t even make enough to turn a profit.
2. Wentz Flew and Fuller Knew–Minkow 012! This point highlights the fact that Myron Wentz has his share of Usana in the tax haven of Lichtenstein, Gil Fuller (Usana CEO) should be aware that Lichtenstein is a tax haven, and the last three digits of Minkow’s prisoner ID number were 012 (since Usana likes to keep reminding everyone that he is a felon).
3. The real stock manipulators are the Usana executives and board members, not Barry Minkow, who has stock puts for less than 300 shares. The insiders at Usana sold stock worth over $95 million since 2003, profiting millions and millions of the backs of distributors who are losing money.
4. My daddy lied and not me! Usana has defended the diametrically opposed statements made to the SEC and the FTC about the proposed Business Opportunity Rule by saying that Dave Wentz didn’t make both of them. Dave wrote to the FTC (complaining about how the rule would cripple Usana), while his daddy Myron signed a company 10-Q for the SEC (which said that the rule would just require them to make a few minor changes). Hello! Company executives were responsible for the preparation and submission of both, and as the manager of the day-to-day operations of the company per Usana, Dave knows about both!!!
5. Usana has taken to arguing about how much grape seed extract is in their products, rather than addressing the real issue: Usana products are overpriced. Comparable (and even better) products can be bought from other retail stores for far less than Usana vitamins. Our report even showed that Usana products are 300% more expensive than other brands. This flies in the face of the company’s repeated claims that they save distributors 75% from traditional retail by “eliminating the middle man.”
6. Usana claims Minkow and team have made false statements about the business model. We have, however, correctly reported that the vast majority of compensation goes to the 3% of distributors at the top of the pyramid, and that the bulk of distributors (95.5% at the bottom of the pyramid) will never turn a profit.
7. Usana responds to almost none of the accusations in the original report. They have selected a few facts and argued those. Namely, the grape seed extract battle and the fact that Minkow is a felon. All of the other allegations in our original report (and supported with facts and documentation) are left unchallenged. Why? Because they are accurate?
8. Expert opinions support our conclusions. Usana can say that Minkow is a felon over and over. But the fact remains that highly respected and highly credentialed and experienced experts worked on this case and their conclusions and opinions support the report.
9. The Fraud Discovery Institute disclosed its for-profit status long ago. To accuse the company of having some sort of profit motive is ridiculous. Yes, the company investigates fraud and has paying clients. Again, this point is made to divert attention away from the real issues.
10. Usana sued Minkow and the Fraud Discovery Institute and we have the right to defend ourselves.