Archive for Pyramid Schemes & MLM
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 »
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 »
Wed 7 May 08 · Filed under Pyramid Schemes & MLM
Judge Alba just ruled that Usana Health Sciences (NASDAQ: USNA) must pay the legal fees of Barry Minkow and Fraud Discovery Institute for its bogus lawsuit. $142,510 to be paid by Usana!
Sat 3 May 08 · Filed under Pyramid Schemes & MLM, Scam Busting
To many, my fight against Mary Kay Cosmetics is puzzling. Why would I want to waste my time with it? After all, they’re only selling lipstick. It’s a harmless company started by a little old lady 45 years ago who wanted to give women an opportunity.
WRONG! Mary Kay Inc. is anything but harmless, and that’s why it’s so important for me to continue to educate people about the company. They are running a scam that brings in $2 billion in sales to headquarters each year.
Where does this money come from? Often from those who can least afford it. The name of the game is recruiting and frontloading. Bring her in and get her to buy an inventory package of $600 to $4800 right away. (If she doesn’t buy within the first couple of weeks, the chances that she will buy anything at all go down exponentially.) Read the rest of this entry »
Sat 3 May 08 · Filed under Pyramid Schemes & MLM, Scam Busting
This week, Gregory Probert, Herbalife’s (NYSE:HLF) president and COO, resigned after being outed for lying about his credentials.
Here’s what an analyst at Goldman Sachs had to say about the company after the resignation was announced: Read the rest of this entry »
Wed 30 April 08 · Filed under Pyramid Schemes & MLM
When the company’s own employees are doing a Google search like this, it says something, doesn’t it?
herbalife greg probert fraud
Sat 26 April 08 · Filed under Pyramid Schemes & MLM
I ran across a blog that did a series examining Primerica Financial Services, a multi-level marketing company that purports to sell financial products. While the company does offer life insurance, investments, and other financial products, like a typical MLM… they’re really out there selling the opportunity. The name of the game is endless recruiting.
The Financial Blogger did several nice posts about the company, but this explanation of the pyramid scheme aspect of Primerica was exceptional: Read the rest of this entry »
Sun 20 April 08 · Filed under Pyramid Schemes & MLM, Scam Busting
Usana Health Sciences Inc. (NASDAQ:USNA) is preparing for a big launch of a new product at this year’s convention, and I thought I’d give you a sneak peek at what it is.
The new product is an energy drink. Apparently, studies by Usana show that you could get a bigger kick from a cup of coffee, but they are counting on the cult mentality to sell the product. Usana-heads will believe management… If they say it gives you energy, then by golly, it gives you energy!
Oh, and apparently lying about one’s degrees and credentials is of no consequence to Usana. Former board member Denis Waitley who trumpeted fake degrees is going to be one of the keynote speakers at the convention.
Fri 11 April 08 · Filed under Pyramid Schemes & MLM
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. Read the rest of this entry »
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