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Minkow uses YouTube to turn up pressure at USANA

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Last week, I wrote about ex-con Barry Minkow's battle with Usana Health Sciences, a nutritional supplement company which distributes its products using a controversial multi-level marketing model. Minkow and his Fraud Discovery Institute released a huge report accusing the company of being a pyramid scheme, selling overpriced products, and making a profit on the backs of it's distributors, a huge percentage of whom did not make money. He also talked about the CEO's decision to renounce his U.S. citizenship for tax advantages, a fact which the company had not previously disclosed. As the war of words has heated up, Mr. Minkow released a video on YouTube, where he continued to attack the company. In the accompanying press release, Minkow wrote that:

Since their lawsuit specifically accuses me of 'publicizing my findings, I thought, 'what better way to publicize our findings in the clearest, most compelling and concise manner, than in an easy- to-access video forum like that of YouTube.com and our own website, http://www.frauddiscovery.net?'" Fraud Discovery Institute will be producing multiple segments outlining in exquisitely clear detail what our research concluded about the un-tenability of the Usana Health Sciences, Inc. business model and then placing those segments online...

Mr. Minkow's decision to take his fight to YouTube provides another interesting case of YouTube being utilized to influence investors.. Back in February, I wrote about mPhase Technologies, a small company that appeared to be using YouTube to promote its stock (The stock plunged shortly after the hype of the video.).

Minkow also appeared on TheStreet.com's Wall Street Confidential to discuss Usana.

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S&P 500+4.981,110.63

Last updated: November 26, 2009: 10:50 AM

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