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Editors Note: Here we go again! First USANA, then Herbalife, and now PPL! These guys have found a stock jock's short seller's paradise and a money making racket combined.  What these guys call fraud is human  nature. 

Here is an analogy to explain why the MLM WatchDog knows these guys are pulling fraud.  MLM is like a book club.  We have our own free will to join because of the great offers they give. Millions of us have joined a book of the month club and after six unread books we drop out. The great thing about free will is we have the choice.  This ex-felon says that the book club (analogy to MLM) is a fraud.  That is why these guys drive me nuts!  PPL a scam - Don't think so!  Rod Cook ur Editor.

Fraud Discovery Institute, Inc.

Six-month Undercover Investigation of PrePaid Legal Inc. results in Fraud Discovery Institute PrePaid Illegal Web Site

PrePaid Legal, Inc. (NYSE:PPD) CEO Harland C. Stonecipher caught on video making multiple misrepresentations irrefutably documented by new FDI report.

For Immediate Release
SAN DIEGO/EWORLDWIRE/May 1, 2008 --- The Fraud Discovery Institute Inc. (FDI) ( today unveiled some of the results of a six-month undercover investigation of PrePaid Legal Inc. (PPL) (NYSE:PPD) by launching a new Web site,

The site includes a comprehensive 25-page report from nationally recognized multi-level marketing (MLM) expert Robert FitzPatrick outlining for the first time the startling fact that PrePaid Legal Inc. is not a product-based, multi level marketing company like Usana Health Sciences Inc. (NASD:USNA) or Herbalife (NYSE:HLF) - which are both in a constant state of collapse, but rather it is a service-based multi-level marketing company actually collapsing.

That this is exactly the case and not an exaggeration, Mr. FitzPatrick - the nation's most respected and leading expert in the multi-level marketing industry as evidenced by his expert testimony on behalf of

Editors Note: My jaw dropped...... FITZPATRICK, the Nation's most respected and leading MLM expert?  If anyone reads Robert Fitzpatrick's books, he started out as a criminal running a pyramid scheme.  Then he had a friend get front end loaded, so that made him an expert?!  He certainly has not shown up on the roster of pyramid scheme cases that I have looked at.  So I will give a 90% probability that the two lines above are fraud just like the statistics he and his buddy John Taylor manipulate.

multiple state attorney generals and other law enforcement agencies notes: "To put the picture of Pre-Paid's recruitment mandate in starker perspective, and the compounding consequences of a decline - PPD had 444,499 associates at the end of 2006, and, during 2007, brought in 148,802 new 'sales' people for a total of 593,301. But only 90,123 or 15 percent of this group made even one sale in 2007. The company needed seven associates for each one that made sales during the year - and more than half of those making sales were making their first sales; that is, they were among those initially joining the scheme. During all of 2007, 503,178 of the Associates - 85 percent - either quit or did not make even one sale. Pre-Paid Legal's data for the first quarter of 2008 further confirm the pattern of decline. It reported to the SEC that 'during the 1st quarter of 2008, new sales associates enrolled decreased 16.9 percent compared to the first quarter of 2007. On a sequential quarterly basis, new associates enrolled decreased 28.4 percent.'"

The site also contains two new YouTube videos where CEO Harland Stonecipher is caught making multiple untrue statements to lure people into the doomed-by-design PrePaid Legal Inc.

"We anticipated that multiple Wall Street analysts would be quick to come out and blindly defend a company that literally ruins the lives of the over 85 percent who actually try to succeed at the PPD business opportunity, so we simply caught Mr. Stonecipher making statement after statement that we factually and accurately debunk one by one," said Barry Minkow, co-founder of the Fraud Discovery Institute Inc. "Moreover, in one of our new videos, former United States Attorney Brad Piggott states that when PrePaid Legal Inc. itself gets sued, the company does not utilize its network of attorneys to defend itself. In the other newly released YouTube video, FDI dissects multiple misrepresentations allowing the audience to infer their own conclusions from the primary source."

Furthermore, CEO Harland Stonecipher received over $10,000,000 from the "dumping" - exercising - of his personal stock options between the years 2006 and 2007 while the company simultaneously used proceeds from failed associates and members to repurchase stock on the open market to the tune of over $139,000,000 dollars. "The MLM industry has given new meaning to the phrase, 'pump and dump'," said Minkow.

Another stunning observation stated in the new Fitzpatrick report is that, "At the end of 2006, more than 1.3 million households already had worked for PPL as sales associates, The total number of households in the U.S. in 2006, according to the U.S. Census Bureau, is 110 million. Over 1 percent of the households of the entire current American population has already worked for PPL - there are only 99 possible households in America for every one that is or has already been a PPL sales associate."

"The significance of this number cannot be overstated," Barry Minkow. "Unlike Usana and Herbalife, PrePaid Legal, Inc. cannot sell their legal services illegally in China or anywhere else for that matter. The company is literally collapsing."

CONTACT: Barry Minkow, FDI 9919 Carroll Center Road, San Diego, CA 92126
PHONE. 888-300-8307 FAX. 858-547-6359 EMAIL:
KEYWORDS: Fraud, Minkow, Barry Minkow, FDI, Fraud Discovery Institute, Pre Paid Legal, PrePaid Legal, crime, criminal investigation, Stonecipher, legal professional, attorney, legal defense, legal insurance - SOURCE: Fraud Discovery Institute

Years ago, Len Clements busted Pre Paid Legal and we got into one of our famous arguments about it with me defending PPL. One of the points I used in my arguments is that MLM people think that PPL is alone.  No it isn't! There are all kinds of legite Pre Paid Legal services on the market. Affinity groups, employee groups and others, you name it.... here is a partial list.  I joined PPL in late 1985 before the big shut down. I should still be mad about that but, that is just part of MLM business life.....    Rod

NAAAAH! Legal Service Plan List
There is an association of prepaid legal services named:  American Prepaid Legal Services Institute. The Prepaid Legal Services Association says, "The Association of Prepaid legal services doesn't endorse or recommend any prepaid or group legal service plan."  An Internet search revealed this list plus many more.  This partial listing of organizations offering prepaid and group legal service plans was compiled from research and is produced solely to provide the "Big Picture" to MLM readers and critics.

601 E St. NW
Washington, DC 20004
Phone: (800) 633-4496 
Association legal service plan

AmeriEstate Legal Plan, Inc.
3525 Hyland Ave. Ste. 150
Costa Mesa, CA 92626
Phone: (800) 235-0963
(714) 881-1360 x 361
Fax: (562) 296-9760
Email: Greg Reese
Legal access plan with a specialty in estate planned and related services.

480 Capital Square, 400 Locust Street
Des Moines, IA 50309
Phone: (515) 246-1200
(800) 888-4184
Personal Legal Service Plans; Business Legal Service Plans; Employee Benefit Plans; Association Legal Service Plans and TelePhone: Access Plans

Caldwell Legal, U.S.A
5464 Ethel Way,
P. O. Box 245778
Sacramento, CA 95824
Phone: (916) 455-3425
(800) 222-3035
Employee Benefit Plans; Personal Legal Service Plans; Business Legal Service Plans

2000 Town Center, Suite 2350
Southfield, MI 48075
Phone: (888) 529-5665
Group Legal Service Plans; Employee Benefit Plans

1060 Kings Highway North, Suite 205
Cherry Hill, NJ 08034
Phone: (856) 667-1133
Toll-free: (800) 550-5297
Employee Benefit Plans, Employer Sponsored Group Legal Plans, Personal Legal Service Plans, Business Legal Service Plans.

A MetLife Company
1111 Superior Avenue
Cleveland, OH 44114
Phone: (800) 423-0300
Employer Sponsored Group Legal Plans

8500 Wilshire Blvd., Suite 916
Beverly Hills, CA 90211
Phone: (323) 525-3900
Legal Service Plans

Legal Club of America Corporation
7771 West Oakland Park Boulevard, Suite 217
Sunrise, FL 33351
Phone: (800) 305-6816
Personal/Family Legal Service Plans; Business Legal Service Plans

629 Wesley Drive
Virginia Beach, VA 23452
Phone: (800) 728-5768
Comprehensive Legal Service Plans

16 Ann Street, P. O. Box 2405
Meriden, CT 06450
Phone: (203) 634-8428
(800) 772-4577
Personal Legal Service Plans; Employee Benefit Plans

GE Money-Americas Partnership Marketing Group
200 North Martingale Rd.
Schaumburg, IL 60173
Phone: (847) 605-7244
Fax (847) 605-4591
Personal Legal Service Plans; Employee Benefit Plans
Carol Ree, Vice President - Professional Newtwork Services.
Email Carol Ree

National Legal Plan
330 Vanderbilt Motor Parkway
Hauppauge, NY 11788
Phone: (800) 292-8063
Personal Legal Service Plans; Business Legal Service Plans;
Employee Benefit Plans; Elder Law Legal Plan

Pre-Paid Legal Services, Inc.
P. O. Box 145
Ada, OK 74820
Phone: (800) 654-7757;
(580) 436-1234
Employee Benefit Plans; Business Legal Service Plans;
Personal Legal Service Plans

Professional Marketing Group
119 North Emerson,
P.O. Box 165
Mount Prospect, IL 60056
Phone: (847) 255-8410
Personal Legal Service Plans; Business Legal Service Plans;
Employee Benefit Plans

U.S. Legal Services Inc.
8825 Perimeter Park Blvd, Suite 102
Jacksonville, FL 32216
Phone: (800) 356-5297 (LAWS)
Personal Legal Service Plans; Business Legal Service Plans;
Employer Sponsored Legal Plans; Traffic Legal Service Plans

Editors Note: Research these shows just about all of these companies offer the same kind of services as PrePaid Legal, some with upgrades, others with added services with scaled up payments.

KEYWORDS: Fraud, Minkow, Barry Minkow, Convicted Felon, FDI, Fraud Discovery Institute, Pre Paid Legal, PrePaid Legal, crime, criminal investigation, Stonecipher, legal professional, attorney, legal defense, legal insurance

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