False claims are made against Usana Health Sciences saying that they are operating a pyramid scheme. It’s not a nice thing. However the lawsuit was ceased and almost simultaneously the SEC dropped their investigation on Usana. Why? I’m not sure though, but I can sense that some one was trying to play prank.
Indeed, Barry Minkow (whoever he maybe, will have to check him out) of “Fraud Discovery Institute” (FDI) made charges against network marketing giant USANA for operating a pyramid scheme. On march 15, 2007, reports from Wall Street Journal said that Minkow had “shorted” Usana stock to fill his ex-felon pockets (or shadow clients). Doesn’t sound good at all.
Minkow was trying to manipulate Usana’s stock price and was believe to have somehow get the Securities and Exchange Commission to investigate Usana. Of course, Usana’s stock price went down and guess who made the killing in the stock market? Barry Minkow did.
The Fraud Discovery Institute was founded by Minkow after serving 8 years of prison for stock fraud. However he denied that he has no intention to drive the stock price down. Ask who to believe?
A Note from Terry
People are taking advantage of the bad reputation that the MLM or Network Marketing have to profit off from it. Their statement may fool the public but it can’t fool the authorities. Network Marketers who have been affected by the scam effect of network marketing, you may now reassure that the authorities are there to keep everything under control. Kill the sales pitch! Educate people about network marketing.
Please share if you have experience the scam effect in any way.
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