Remember Baghdad Bob the Iraqi Information Minister who insisted the US was nowhere near Baghdad, even as the media blared images of the invasion?

I'm not sure what happened to Muhammad Saeed al-Sahhaf (AKA Baghdad Bob) after the fall of Saddam Hussein's regime, but a recent AP article gives me an idea: Maybe he's signed on with USANA Health Sciences (NASDAQ: USNA) as a company spokesman.

Yesterday, USANA's auditing firm resigned, but the company basically insisted that it did so for no reason. Until recently, USANA has said relatively little regarding private investigator Barry Minkow's allegations of wrongdoing at the company, but that's been changing lately. Spokesman Joseph Poulos (Salt Lake Sam?) has stood up to defend his employer. The results have been, well... He seems about as disconnected from reality as Baghdad Bob was. Take a look at some of his most memorable quotes from the past few days:

"Why would anybody take this guy seriously? What is he an expert on? He isn't a forensic accountant. He just committed one very large crime once."

Why would anybody take this guy seriously? Well, for starters, Barry Minkow has helped the SEC, FBI and other government agencies uncover and shutdown over $1 billion in fraud. He was recently credited with helping catch a man perpetrating a $16 million real estate fraud in New York. The SEC also charged Californian Nelson Liao with operating a $45 ponzi scheme after the matter was brought to their attention by Barry Minkow and his Fraud Discovery Institute -- Barry Minkow is an expert on fraud, partly because he knows what it takes to perpetrate one. The authorities rely on him for training and proactive fraud discovery.

Here's what James Asperger, the man who prosecuted Minkow for the Zzzz Best fraud, said about him a few years ago: "As Barry Minkow's prosecutor, I zealously prosecuted him for his crimes relating to the Zzzz Best Fraud. With that same zeal, Barry has made a remarkable turnaround... uncovering far more fraud than he ever perpetrated."

As for the argument that Minkow isn't a forensic accountant, that's true. But Tracy Coenen is, and she's been slamming USANA just as hard as Minkow. Not only that but unlike some of USANA's high-level associates and former directors, she actually has the credentials she claims to have!

"This company sells vitamins. In a pyramid scheme there's no product."

Hmm... As Tracy Coenen points out in her blog, "Stuart Wallace of New Zealand's Commerce Commission's Fair Trading Branch says hes investigated many pyramid schemes, and some of them sold products. He says New Zealand courts consider a number of factors in pyramid scheme cases, especially whether or not the plan is primarily aimed at selling products or recruiting new members."

According to New Mexico Attorney General Gary King, "Product-based pyramid schemes are where participating persons not only contribute money to a person identified at the top of the pyramid but also are encouraged to sell a product associated with the person at the top of the scheme. These product based pyramid schemes are often disguised as 'business opportunities'... Persons wanting to learn more about product-based schemes are encouraged to access web site www.PyramidSchemeAlert.org."

What does Pyramid Scheme Alert think about USANA? Well, they wrote a letter to the FTC asking that the company be investigated and accused USANA of operating a "business opportunity based upon the fraudulent trick of "endless chain" recruiting."

"What's mindboggling to me is that Barry Minkow has admitted he's short-selling the stock."

Who cares? Short sellers are often extremely successful in uncovering and exposing fraud. Think of Jim Chanos and Richard Grubman who made millions shorting shares of Enron. Jeff Skilling tried to deflect their criticisms by labeling them short sellers, and even called Grubman an "a**hole" on a conference call. I don't know Grubman. It's entirely possible that he is what Skilling said he is, but that didn't stop Enron from being one of the greatest frauds in history. The fact that Barry Minkow is a convicted felon and bought puts doesn't make anything in his report untrue, and Salt Lake Sam and company have been mysteriously silent on the substance of the report.

More USANA Health and Sciences news

Kevin Kelly: "Heard on the Street" knocks USANA
Zac Bissonnette: Oh snap! Barry Minkow fires back at Usana Health Sciences
Zac Bissonnette: Forbes slams Usana Health Sciences (USNA)
Zac Bissonnette: NZ National Business Review slams USANA Health Sciences (USNA)
Zac Bissonnette: USANA has a product, so it's not a pyramid scheme?
Zac Bissonnette: Is Baghdad Bob working for USANA Health Sciences?