
In addition to numerous misrepresentations about its own company, the management at Usana Health Sciences (NASDAQ: USNA) has also taken to slandering its chief critic, con-man turned gumshoe Barry Minkow. Now Minkow is fighting back.
In a letter to Usana President David Wentz and CFO Gil Fuller also posted on his Fraud Discovery Institute's website, Minkow writes:
I have struggled over the last several weeks to remain silent in response to the multiple slanderous accusations made by your company in both your SEC filings and public statements. You and your paid supporters have made one false accusation after another, including your
company's statement in the recent Forbes article:
"We believe everything he [Barry Minkow] says to be false," Usana spokesman Joseph
Poulos told Forbes.com. "He's a liar; he's a criminal -- he can't be trusted."
Now Mr. Poulos said this on the record to a national magazine knowing it not to be true because even he believes that everything I have said is not a lie or he would have prevented (just to give one example but be assured these examples could be readily multiplied) Mr. Waitley from resigning from the board of directors as our reporting of the non existence of his Masters degree from the Naval Academy was dead on (again just to provide one example).
Of course, anyone following the Usana story knows that Mr. Poulos is, at best, completely out of touch with reality. I recently did a post comparing him to Baghdad Bob. Minkow also shows the first real evidence of accounting fraud at the Salt Lake City multilevel marketing company. Read the letter to see that.
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Zac Bissonnette: USANA has a product, so it's not a pyramid scheme?
Zac Bissonnette: Is Baghdad Bob working for USANA Health Sciences?











Reader Comments (Page 1 of 1)
8-18-2007 @ 4:39PM
Roger Sutton said...
The end of the day the numbers show the true facts. Barry Minkow's endless assault on Usana might actually reflect a giant being attacked at its top. This is many times the case.
The latest Q2 2007 results lead one to believe that even with the negative press, being a International company, Usana can still engage in healthy business.
USANA Announces Record Q2 2007 Net Sales and Earnings Per Share
http://biz.yahoo.com/bw/070717/20070717006205.html?.v=1
9-25-2007 @ 5:56PM
Klaus said...
I personally think that Minkow's unknown client(s) targeted USANA for reasons that we are not sure about. My feeling is that it may be profit oriented.
My main concern is that overall; USANA is a caring company with many great people and alliances. It's by far not perfect, but overall it’s a good company. They have a 250,000 square foot manufacturing facility that voluntarily manufactures its products to pharmaceutical standards. They do use a legitimate network marketing go to market strategy of direct sales.
If they just wanted to build a fake/farce product pyramid scheme, why spend so many resources on land, manufacturing equipment, labs, warehousing, IT systems, employees (1000 people work for USANA) and the list goes on.
If you look at companies that were brought down that “posed as legitimate NWM businesses”, you’ll see that most of their so-called products were manufactured by a third party, services were contracted out and the product was inferior. No high-end third party endorsement would be there even if you paid them.
I’m not sure if USANA paid an endorsement fee or signing bonuses to the US and Canadian Olympic Speed Skating Teams, Women’s Professional Tennis, Tennis BC, Bernice King, Christine Northrup, MD, SportMedBC or any other of the multitudes of high end third party organisations and professionals. What I can say is that if the product that USANA produces would have been inferior (because they do use three well respected independent labs to check their products), they would not have agreed to the terms of an endorsement. There is no price tag for integrity and honesty. If these organizations and professionals did not think USANA made the cut, chances are they would have said, “keep your money!”.
My issue here is that I think Minkow used the press as his method of prosecution, judge and jury, which is a blatant misuse of free speech. The FBI or any other law enforcement authority would never shoot first and ask questions later. Before the FBI issue any formal statement to the press, they along with the respected prosecutors office, would say that there was enough evidence to lay charges and pursue legal action. Barry and his FDI went to the press in a hateful and malicious way. With total disregard for the majority of honest and hardworking people that work with and for USANA. He used information that may have had some relevance, but twisted it in a way that went beyond the real truth. I call them half-truths, because he twisted the tidbits of information in a way that made the whole company look bad. This also hurt many shareholders of USANA. If you need examples I can easily put that list together.
Let the courts and jury decide who will win this battle and be done with it. USANA has a very strong legal team and I'm sure Minkow and his unknown client(s) are doing OK for legal representation. It will be interesting to follow this story, as it will have ramifications for the NWM industry as a whole. I'm sure there will be issues of external USANA stock manipulation as well.
You know, USANA isn’t even interested in getting money out of Minkow (he already owes 25 million dollars from previous criminal activity), you can see that in their suit against him. They simply want a public apology for jumping the gun and for listening to the small horde of anti MLM/NWM zealots who jumped on, or created this bandwagon. USANA want their good name back. They want their shareholders to be assured that they made the right choice investing in them. USANA want their preferred customers and associates to know that the last 15 years was a time to be a part of something greater then themselves. USANA want their stakeholders to regain confidence in them. By the law of the universe, this will happen and everyone on both sides of the equation will be better for it and hopefully will have learned something.
We live in free countries (Canada and the US) and have the ability to express our views openly. I just hope that these freedoms are not abused in a way that hurt others in the process.
All the best and thanks for the dialogue.
Sincerely,
Klaus
10-22-2007 @ 2:04AM
David said...
Most of us are getting confusing about the compesation plan and the income of USANA Heath Sciences. But, we need make it clear to ourself about what it stated from Barry Minkow. All the facts and video are pin-point on MONEY!!! They are actually two video about USANA Heath Science which everyone must see, and figure out clearly. First Video was about a blind man losing money as he couldn't recruit anyone. This problem occur when the upline was aiming for money but not giving informative guide or enable them to sustain in the marketing business. So, in marketing business couldn't allow upline with this attitude as they're polluted the marketing environment. Another video was about lawsuit againsts small nutrimart onwer. This video mainly talk about PRICING! Comparing products is not a good selling point for Barry Minkow, it's a very old tactic for a smart consumer?
In conclusion with Barry Minkow, He done no contribution to health or getting any Albert Einstein , any carries a lots criminal records. One of the main comparison is that he doesn't helping people to get heathy or doing something better than what he is doing. He is just wanna to get some fame by doing all these, to ensure he's famous in the history of USANA Health Sciences.
I'm really in writing essay than talking, hopefully can get points.