The New York Post reported today that Usana Health Sciences (NASDAQ: USNA) CFO Gil Fuller doesn't really have a CPA; he just says he has one in SEC filings. This is perhaps the most serious in a series of credentials flaps for Usana that I've listed on BloggingStocks last week. Here's the updated list:
- Denis Waitley, a director at the company, decided not to stand for re-election after investigator Barry Minkow uncovered that the PhD listed in his biography came from a long-defunct diploma mill. He also does not possess a Master's degree, although one was reported in numerous SEC filings.
- Dr. Timothy Wood, Vice President of Research and Development at the company, claimed to have a PhD in biology, but it's actually in forestry, which seems less relevant at a company that makes nutritional supplements.
- Myron Wentz, the company's founder and Chairman, renounced his U.S. citizenship to "move" to the tax haven of Liechtenstein.
- And now, according to the Wall Street Journal, Dr. Ladd McNamara has left the company's medical advisory board after it was discovered that he no longer has a medical license [subscription required]. A Usana spokesman said that McNamara surrendered his license in Georgia in 2004 in response to allegations that he improperly prescribed medication to a family member. He also agreed to a lifetime ban from practicing medicine in Ohio.
- CFO Gil Fuller claims to be a Certified Public Accountant. While it's quite common to let a CPA license lapse, he hasn't been one since 1986. Back then, people were terrified of communism, everyone in Boston hated Bill Buckner and the New Kids on the Block were cool -- OK, no, they weren't. But the point is that being a CPA in 1986 doesn't really mean anything in 2007.
In a few weeks, Usana will be releasing its quarterly earnings. You have to ask yourself: Given that the company 's management can't seem to stop lying about their credentials, why should we believe the earnings numbers they present, or anything else they say?
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Savings Experiment: Snow Removal


Reader Comments (Page 1 of 1)
6-12-2007 @ 4:45PM
Justin Tyme said...
And pray tell, what are YOUR credentials? Have you ever "lied" or "exaggerated" on your resumé? Or when applying for a job? Or cheated on an exam in school? Or lied to your parents? Or lied to someone whom you wanted to have sex with or get to do something you want? It's sooooo easy to throw stones and destroy things isn't it? Just toss out opinionated, biased, agenda-riddled BS. That's cheap and easy to do and you're guilty of doing just that! So why not cross over to the other side and try building something of importance that will contribute to the well-being of others? My guess is that you don't have the integrity or the ethics or empathy or will to do that! You'd rather keep yourself enslaved to the dark forces. Hopefully I'm mistaken! So, I invite you to prove me wrong.
Justin
6-12-2007 @ 5:23PM
Sheldon L said...
Hey JT,
You need to take a chill pill. The offenses Zac has reported were not fabricated by him, it's news, and important to shareholders. If people lied in SEC filings routinely that is extremely bad, not to mention illegal. If it is a repeated offense even worse. You are way too cavalier in your comments and tolerance of company leadership. It puts into question your ethical standards, not Zac's.
6-12-2007 @ 10:06PM
JimB said...
Where there's smoke, there's fire. Those padded credentials were made in 2002 in part effort to provided shareholder's and distributors that he had more business acumen than he may or may not have. Remember, perception is reality. If I were to guess, there is more "smoke in mirrors" associated with this company - I'm looking into buying some put options
6-12-2007 @ 10:06PM
JimB said...
And by the way, I'm a NJ CPA and a Registered Investment Advisor in 12 states.
6-19-2007 @ 10:30PM
Dave said...
That first comment is a classic. Justin Tyme...dude, what are you, like fourteen? This company reeks. An MLM vitamin company?...sell.
6-22-2007 @ 11:50AM
TRB said...
Hi,
I was a member of USANA and made back about what I invested but I have a little different story to tell. I'm an end user of vitamins that I feel are working right for me. This is not to say that USANA vitamins do a total job of giving me all my needs but that any company that has a multible system of things to use, I would rather know that they are more synergistically applied, than for me to go into a store and take a chance that the vitamins I use don't have that much synergistic compatibility. What turned me off to some of their product was that some of it didn't work for me. But I was not of the mind to think I could build a business above and beyond my own physical needs. The important thing I hang on to is that I'm more quality product oriented than money oriented; just for the sake of making money. I still take their calcium and use their toothpaste because I really like them, but the rest of their product I can do without. I'm what you might call a cautious user and investor, and I would be a fool to believe anyone that came along and told me that I could make a lot of money for any reason. I think it's this greed syndrome that puts man in a place that can be destructive. B. Minko should know, my friend.
8-09-2007 @ 1:42AM
NW-Woman said...
Like the prior poster, I also take USANA's Nutritional Supplements (the HealthPack 100, specifically).
I began doing so about a year ago, after many decades of poo-pooing nutritional supplements. Initially, I experienced no change. As months passed, though, I experienced an increase in energy, alertness and concentration that I wondered about.
Was it a placebo-effect?
I live in a university research environment; questioning is a part of this culture.
Months ago, I had my annual physical. The blood panel showed that my HDL had increased, LDL had decreased, cholesterol had decreased, triglycerides had decreased, blood pressure was lower.
Two weeks ago, I had my annual eye exam. My optomotrist scheduled me for a second appointment. She expressed fear that I had a disease state. During the much longer second appointment, she diagnosed that no, nothing was wrong but that yes, my eye sight had changed. I went from 375 in my left eye to 275 and 350 in my right to 260.
Both my optomotrist and my physician now take USANA Essentials.
I do not know the factual linkages here. All I can express are my experiences.
8-27-2007 @ 9:50AM
camrondeen said...
http://www.totalwellnessnetwork.com