MLM LIES & MYTHS - MLM FRAUD INVESTIGATIVE EDITORIAL OPINIONS
MEDIFAST LAWSUIT JULY 2012 UPDATE
TAKE SHAPE FOR LIFE - MEDIFAST EXONERATED ? YES!
31 March 2011 -- Rod Cook Editors Note: JUBILATION! Barry Minkow of the Fraud Discovery Institute is on his way back to prison. Robert L. Fitzpatrack has not had a good time during depositions in the Medifast case! See his depositions click below!
MINKOW & FRAUD DISCOVERY INSTITUE HAMMERED
Jan 2011 -- For years now, Barry Minkow and the Fraud Discovery Institute have preyed on publically traded MLM – Network Marketing companies by claiming they were pyramid schemes. Minkow would short-sell the stock and make money. There may still be a case pending with the MLM Company Medifast against Minkow, but we don’t have a current status.
A Florida judge has ruled against Barry Minkow (Fraud Discovery Institute) in a libel and extortion lawsuit brought by Lennar Corp. The home builder has previously estimated losses at millions of dollars -- Florida State Court Judge Gill Freeman found Minkow, the California con-man turned fraud buster and pastor of a church, guilty. Minkow, according to the judge, concealed evidence, and the identity of key witnesses, willfully violated court orders and tried to "cloud his misconduct." Here are details below and also a copy of the Judge’s decision.
Barry Minkow Destroyed Evidence And Lied To Court In Extortion
MEDIFAST SUES MINKOW AND FRIENDS FOR $270 MILLION
9 March 2009 -- Medifast of Owings Mills, had little to say about their $270 million defamation lawsuit filed in U.S. District Court against Barry Minkow, co-founder of the Fraud Discovery Institute of San Diego, Minkow's institute and others. "As many of you are aware, the company has filed a lawsuit against a number of individuals who made false and misleading statements against the company," said CEO Michael S. McDevitt. "The company intends to pursue all available legal remedies to protect our employees, life coaches ... and brand."
Minkow was convicted in 1988 on 54 counts of racketeering, securities fraud, embezzlement, mail fraud, tax evasion and bank fraud and served seven years of a 25-year prison sentence. He said he founded the institute to investigate fraudulent activities, but, according to the Medifast suit, admitted in 2008 to short-selling the stocks of companies he has investigated.
BARRY MINKOW - FDI -ROBERT FITZPATRICK - CAUGHT IN SHORT SELL SCAM AGAIN?
HERE IS LATEST OPPINION OVERVIEW - FRAUD REPORT WILL UP TOMMORROW
"TAKE SHAPE FOR LIFE" ATTACKED BY FRAUDULENT FRAUD DISCOVERY INSTITUTE
Feb 17 2009 -- Medifast Inc publically traded owner of Shape For Life Network Marketing Company, rejected as "false and misleading" a report that it conducted the equivalent of a "pyramid scheme" to add revenue, after the report triggered a near-30 percent drop in its share price.
Barry Minkow's Fraud Discovery Institute (FDI) released a fraudulous report (written by Robert Fitzpatrick*) charging Medifast of sucking in consumers to become health "coaches," for which it charges a fee, only to use the money to pay newer recruits. Fitzpatrick has participated in other short sell schemes with FDI that failed including Pre-Paid Legal, Usana, and Herbalife. Minkow is stupid because he keeps depending on Robert FitzPatrick and John Taylor to provide information. Duh, Minkow the SEC and the Australian government equivalent of the FTC have refused to take in action on their fraud reports about MLM – Network Marketing Companies under the guise of the Consumer Awarness Institute. Haven't you learned yet! See below!
Fortunately for Medifast Fitzpatrick does not know how to read a compensation plan. The big bounties he talks about in his laughable report are mostly on “clients” which are end consumers not MLM participants. Also he switched his approach and now is trying to run on endless chain pyramid law. Duh, first Robert Fitzpatrick should learn to read an MLM compensation pay plan.
Medifast Chief Executive Michael McDevitt called the claims "spurious." The MLM WatchDog agrees and thinks that Medifast should file a complaint against Minkow with the SEC on short selling and see if the SEC can help him back to prison.
Minkow did prison time for stock fraud at his own former company, ZZZZ Best, but now says he investigates fraud himself. Hah! Read the information below on illegal short selling.
Shares of Medifast closed down $2.18 on 16 Feb 2009 at $5.13 on the New York Stock Exchange. Just what Minkow wanted!
Take Shape for Life, a Division
BARRY MINKOW - ROBERT FITZPATRICK - JON TAYLOR PhD CAUGHT IN SHORT SELL?
USANA - HERBALIFE - PREPAID LEGAL ILLEGAL STOCK SHORTING SCHEMES
FROM DEEP CAPTURE - That shares the same opinions as the MLM WatchDog
June 2008 -- The MLM WatchDog is hot on this because this action hurt 1000's of little guys. Distributors for the MLM companies were attacked. Why? Because a lot of the buyers of MLM company public stock are THE COMPANY Distributors. So instead of helping the public these stock shorters are hurting the little guys and gals...MLM distributors. The general public they pretend to protect!!
June 2007 -- Judd Bagley of "Deep Capture" (a hunter of illegal short sellers) concludes that convicted stock manipulator Sam Antar and securities class action litigator Howard Sirota were working in concert with convicted stock manipulator Barry Minkow’s Fraud Discovery Institute (FDI) to manipulate the share price of USANA, a public company.
Ur Editors Opinion June 2008 -- During court ordered deposition where he had to tell the truth (or go to jail) Minkow admitted in mid-2006, convicted felon Antar sent him a $100,000 because Antar thought he was a good example. Minkow just accidentally decide to use Antar’s money to finance FDI’s attack on USANA, which was published and delivered to the SEC on February 20, 2007 before Minkow established a short position in USANA stock, as well as investing in put options (both of which gain value as a stock loses value). Minkow admitted in total, Antar’s support for FDI has exceeded $250,000. Minkow was also forced to admit two payments totaling $40,000 by hedge fund manager, and $10,000 by Anthony Bruan, owner of Cactus Capital. Let's see that is $300,000 Minkow collected before the USANA attack. Minkow told the SEC he was into shorting USANA stock for about $50,000. I bet the SEC will be interested in the other $250k floating around that Minkow didn't tell them about!
In my opinion it appears that Minkow is back to illegal securities activity! How much did Jon Taylor PhD get paid for his rant on USANA? How much did Robert Fitzpatrick get paid? Are they in deep enough for being indicted on securities violations? Hope so because of the fraudulent statistics they keep throwing around as they bash the MLM Industry!
DEEP CAPTURE = THE HUNT FOR ILLEGAL SHORT SELLERS
Includes Minkow USANA Deposition
JON TAYLOR PhD (Utah)
REPORT TO CONVICTED FELON MINKOW
42 PAGE REPORT THAT FRAUD DISCOVERY INSTITUTE USED
Most of this report is Jon Taylor's normal rambling around having no concept of what a retail sale is (actually = a sale to a consumer that does not belong to the MLM pay plan).
Robert Fitzpatrick Jumps in as President of Pyramid Scheme Alert on page 39 with a Data Analysis. Then on the last page all @##$%$^&*^% break's loose. Either Fitzpatrick used an alias when he ended the paper or a stooge did.....
IS THIS TAYLOR AND FITZPATRICK'S CONNECTION TO ILLEGAL SHORT SELLING??
LAST PARAGRAPH OF REPORT QUOTE:
"If there is any else I might be able to do for you or help with, let me know. I will stay on these USANA distributors on the YAHOO forum for Usana's stock. They keep opening their mouths revealing information they probably shouldn't be. That is how I was able to get you the US distributor income statement."
- Steven R
COMPILATION OF INDUSTRY EXPERTS REPORTS
Compare Writing Styles Robert Fitzpatrick and Jon Taylor PhD
On Yahoo Groups "MLM SURVIVOR" AND USANA STOCK BOARD
June 2008 update - Judd Bagley of "Deep Capture" (a hunter of illegal short sellers) has sources to track through who posts lying messages on Yahoo! So that means that we can expose these commercial book sellers on Anti-MLM message boards and groups the biggest being MLM Survivor. In my opinion, court probing may find that Robert Fitzpatrick and Jon Taylor were also involved in some way of bashing USANA on Yahoo finance boards during the short seller run!
Maryland law used to Refute MLM Critics
KEY WORDS: SHORT SELLING, USANA, STOCK, MINOW, FRAUD DISCOVERY INSTITUTE, JON TAYLOR, ROBERT FITZ PATRICK, INDEX OF MLM CRITIC LIES, BARRY MINKOW