Archive for May, 2008
Tue 13 May 08 · Filed under Pyramid Schemes & MLM
In an article today about the Usana Health Sciences (NASDAQ:USNA) buyout offer by Myron Wentz (Gull Holdings), the following inaccurate statement was made:
The Securities and Exchange Commission concluded during the first quarter USANA’s marketing model is not a pyramid scheme, but the stock has a short interest about 34 percent, meaning many investors are betting the stock will fall.
The SEC did not say that Usana is “not a pyramid scheme.” Nothing could be further from the truth, although company management would like you to believe that this is what the SEC said. Read the rest of this entry »
Tue 13 May 08 · Filed under Fraud News Stories
The Milwaukee NBC affiliate is reporting that Corinna Kuhnke allowed her 2-year-old to smoke a cigarette at a restaurant. Witnesses say that a woman with Kuhnke and her son lit the cigarette that the boy put in his mouth. Kuhnke denies it all, and says that her son just got his hands on her cigarettes that were on the table, but that no one lit it.
Kuhnke and her aunt both received citations for giving tobacco to a minor.
Tue 13 May 08 · Filed under Scam Busting
This morning, it was announced that Usana founder and current chairman and CEO Myron Wentz offered to buy all outstanding stock of Usana Health Sciences (NASDAQ:USNA) at $26.00 per share. The closing price of the stock on May 12 was $20.83, so this represented almost a 25% premium.
The buyout would be made through Unity Acquisition Corp, an entity controlled by Gull Holdings. Gull Holdings is owned by Myron Wentz, and that entity (along with the “other participants” in the buyout) owns 68% of Usana currently.
Experts speculated that the company might be taken private in order to prevent future scrutiny by the Securities and Exchange Commission. Indeed, the company says that going private will give them “significant cost savings.”
Mon 12 May 08 · Filed under Productivity & Professional Development
Have I ever mentioned how sick of headhunters I am? Well I am. I don’t want their phone calls. I don’t want their emails. I don’t want the crappy job they’re offering, and I don’t know anyone who is qualified to apply for the crappy job they’re offering. It’s not crappy, they say? I don’t care. I don’t want to discuss it.
I know you didn’t “get my name from someone while networking.” That lie is old. Quit using it. I know you found me in a CPA directory or on the internet. When you lie, I hate you even more. So can we stop the charade?
What must I do to get headhunters to quit contacting me? Any suggestions are deeply appreciated.
Mon 12 May 08 · Filed under Fraud News Stories
Question: Did Enron have good cash flow?
Answer: No. That was one of the signs that a fraud was occurring. In spite of financial statements that showed increasing revenue and profits, the company was constantly in a poor cash position. This is one common red flag of fraud discussed in my book, Essentials of Corporate Fraud.
Mon 12 May 08 · Filed under Fraud News Stories
One of Milwaukee’s largest Catholic churches is likely the victim of financial fraud at the hands of a now dismissed priest. Leaders at St. John Vianney in Brookfield are urging people not to rush to judgment and to wait until the forensic examination is over and we have all the facts. Unfortunately, it doesn’t look like the news will be good.
Last December, Father Leonard Van Vlaenderen was arrested and charged with misdemeanor cocaine possession. He has pleaded no contest to the charge and will be sentenced this month. He was put on leave from the church, and three parishoners began examining the church’s books. Read the rest of this entry »
Mon 12 May 08 · Filed under Writing & Blogging
Welcome to the May 12, 2008 edition of carnival of fraud.
Tracy Coenen presents Mary Kay Cosmetics suing little company for daring to make money off Pink posted at The Fraud Files Blog, saying “Mary Kay Inc. is trying to shut down a small company that helps consultants get rid of excess inventory. Nice.”
Wenchypoo presents Three Little Words Limit Severe Consequences posted at Wisdom From Wenchypoo’s Mental Wastebasket.
Leon Gettler presents PCAOB targets mortgage securities posted at Sox First, saying, “Here’s a warning to all audit firms and subprime fraudsters: the Public Company Accounting Oversight Board has signalled that it will target securitized mortgage loans and collateralized debt offerings when it inspects 2007 annual reports.” Read the rest of this entry »
Sat 10 May 08 · Filed under Fraud News Stories
Still writing a lot for AOL but having a good time doing it!
Win some spending money at Comic Wonder - A very cool site started by local serial entrepreneurs.
And you think YOUR kids are expensive? - The Duggars are at it again. Child #18 on the way.
What would a gas tax holiday really do for consumers? - Temporarily lowering the federal gas tax won’t really help consumers.
Click here to protect your computer - Have you gotten one of those crazy pops telling you your computer is infected and you MUST click here? Don’t do it!
Consumer Complaints: None at Home Depot! - Home Depot has been very good to me!
Letting prisoners out early to save money is not the answer - Don’t open the prison doors. Find another way to spend less money.
More cheap prescription drugs coming to Wal-Mart - Thanks to Wal-Mart, you’ll pay less for your prescriptions at Target and other stores!
Traditional real estate agent services going out of style? - Why pay 6% to a broker when you can spend far less to sell your house?
Fri 9 May 08 · Filed under Pyramid Schemes & MLM
This is outrageous! Touch of Pink Cosmetics is a company that buys excess inventory from current and former Mary Kay consultants and then resells it to their customers. They basically help these people who were frontloaded with tons of product, purchasing it from them at a discount and then passing those savings on to consumers. It’s a win for everyone: consultant unloads useless overstock, customer gets a discounted product, and Touch of Pink makes a little money in the process.
But Mary Kay wants to stop the whole thing! Details on my consumer awareness site, Pink Truth.
Fri 9 May 08 · Filed under Pyramid Schemes & MLM, Scam Busting
Herbalife (NYSE: HLF) whistleblower says illegal acts likely responsible for region’s dramatic supervisor growth
Herbalife (NYSE:HLF) executives identified Venezuela as a Top 10 market for the company in their May 2, 2008, conference call, and indeed, triple digit new supervisor growth was reported there in the first quarter. However, according to former Herbalife Director of Venezuela and Columbia, Ricardo Hollander, all is not as it seems in Venezuela. Read the rest of this entry »
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