Usana, TERMINATION MLM CRITICS MINKOW, ROBERT FITZPATRICK, JON TAYLOR..... USANA STOCK SCAM?

USANA LOSES ARBITRATION

Judgement will cost Usana $7 million

EXTRACTED FROM SALT LAKE TRIBUNE - LINK MORE DETAILS BELOW

02/15/2009 Usana Health Sciences failed to follow through on an agreement that would have reinstated Chris and Elizabeth Kutschera who owned a top independent distributorship. This led to a $7 million judgment against the Salt Lake City-based maker of nutritional supplements and beauty products, according to court records.

Because of a confidentiality agreement, neither side will comment on the facts of the case, but court records show that Usana fired (terminated) the Canadian couple making $600,000 a year as distributors after their daughter signed them up with a rival multilevel marketing company Isagenix.

Terms of the settlement weren't disclosed but Usana and Chris and Elizabeth Kutschera had previously entered into binding arbitration, meaning neither side could dispute the findings of an independent arbitrator. Evan A. Schmutz, a Provo attorney who represented the Kutscheras, declined comment, citing the confidentiality agreement.

Usana officials said the award would not affect their ability to enforce contracts they have with independent distributors. "We chase these violations aggressively," said Jeff Yates, chief financial officer. "While I've found this company to be enormously benevolent to its distributors, particularly as they challenge their contracts, this one seemed pretty clear. It's interesting to us the arbitrator found otherwise. We don't believe the facts supported it."

Chris and Elizabeth Kutschera, through their company Praise Enterprises Ltd., began as Usana distributors in 1995. Under multilevel marketing plans, participants get commissions from those they recruit as distributors and for others who are subsequently brought into the fold. By 2003, the Kutscheras had built their "downline" to where they had 5,000 members under them, were earning $600,000 annually in commissions and bonuses. This generated about $20 million a year in sales for Usana.

But in 2003, the couple's contract was canceled. Usana claimed that though the couple was highly successful with Usana, they decided to "hedge their bets" and signed on with competing multilevel marketer Isagenix International with headquarters in Chandler, Ariz. The Kutscheras also recruited some of their Usana distributors to the other company in violation of their contract, Usana claimed.

The couple sued over dismissal, and 3rd District Judge Anthony Quinn ruled that the parties had to settle the dispute with an arbitrator through the American Arbitration Association. The two sides agreed on Thomas Chandler, a commercial attorney in Boise.

The arbitrator, Chandler ruled that while the Kutscheras may have technically violated their contract, their involvement with Isagenix was so minor it did not warrant dismissal from Usana.

According to the decision and court records, the Kutscheras ordered products from Isagenix to help an overweight son and a daughter suffering the effects of having lived in a house with mold. Because of success in using Isagenix products, the daughter signed up with Isagenix and then she signed up her parents, her fiancé and the fiance's mother to receive the products. By Canadian law, the Isagenix products were only for personal use and couldn’t be resold.

A family acquaintance Janine Palatin also signed up with Isagenix. But she became upset over added shipping charges and other fees and complained to Usana in July of that year about the Kutscheras.

The Kutscheras were suspended from Usana in 2003 but in about August of that year they reached an agreement reinstating them in return for agreeing to only promote Usana products and to fix problems with Palatin. But then, Usana added a new clause to the agreement it sent the couple that would have required them to give Usana a list of the Isagenix customers recruited by their daughter.

The Kutscheras said that would have been illegal interference in their daughter's business and Usana agreed to take that part out. But the arbitrator said that there was no evidence the Kutscheras received a new agreement, and Usana canceled their contract terminating them. Chandler ruled that the Kutscheras were not building a competing business and that Usana did not suffer any damage as a result of their actions.

In fact, he said, Usana breached the reconciliation agreement the two sides had reached, then terminated the couple when they refused to go along.

In an aborted motion in 3rd District Court (public record), Usana had argued that Chandler had "manifestly disregarded" Utah law in making his decision and had ignored substantial evidence.

Extract of Article by

By Tom Harvey

The Salt Lake Tribune

http://m.sltrib.com/sltrib/db_10978/contentdetail.htm;jsessionid=8024C878F951B35D5D494B9C630E9899?contentguid=BJ3Jl1eq&full=true#display

DISTRIBUTOR SLAMS USANA FOR $7 MILLION

To Quote: An unanticipated arbitration award against the Company for approximately $7 million for wrongful termination of a former USANA distributor;

The Salt Lake Tribune is supposed to come out with a full expose of this wrongful termination (and maybe others) that is causing USANA stock holders $7 million plus some change. We are standing by to bring you that news. Here is the stock report!

USANA report Run Down and Check between line 32 and 35.

Morning Star Stock Report USANA

MLM LIES & MYTHS - MLM FRAUD INVESTIGATIVE EDITORIAL OPINIONS

BARRY MINKOW - ROBERT FITZPATRICK - JON TAYLOR PhD CAUGHT IN MLM USANA SHORT SELL?

USANA - ILLEGAL STOCK SHORTING SCHEME

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 Usana's MLM company public stock are THE COMPANY Distributors. So instead of helping the public these stock shorters are hurting the little guys and gals... Usana 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 like this Usana attack! 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

http://www.deepcapture.com/the-ties-that-bind-sam-antar-and-barry-minkow/

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 OF USANA STOCK??

LAST PARAGRAPH OF REPORT ATTACKING USANA QUOTE:

PAGE 42

"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

HERE IS THE PDF FROM JON TAYLOR USED IN USANA ATTACK SEE PAGE 42

COMPILATION OF INDUSTRY EXPERTS REPORTS

ROBERT FITZPATRICK

JON TAYLOR