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JMTO- but see this...

Fraud Discovery Institute Responds to Usana Health Sciences (USNA) Earnings Call with Top 10 List of Apparent Misrepresentations
Thursday April 5, 9:00 am ET

SAN DIEGO, April 5 /PRNewswire/ -- The Fraud Discovery Institute, Inc. (FDI) responded today to the Usana Health Sciences, Inc. (Nasdaq: USNA - News) earnings call of April 4th, 2007 with a "Top 10 List of Apparent Misrepresentations." The list is posted at http://www.frauddiscovery.net.

Usana boldly proclaimed in the earnings call, that, other than a minor resume adjustment pertaining to one of their independent directors, nothing in the original FDI report to the SEC, FBI and IRS could be relied upon and was "most definitely ... false, misleading or taken out of context." Beginning with this statement made in the context of a publicly advertised earnings call, FDI through a point-by-point corroborated analysis, decimates this assertion.

"This public assertion is materially false by the company's own previous statements," said Barry Minkow. "Whether you want to talk about Dr. Wentz's renouncing of his American citizenship for St. Kitt's and Nevis, or his previously undisclosed stashing of 46% of the company shares in Liechtenstein, or the taped 'Opportunity Meeting' that took place at Usana headquarters where multiple misrepresentations were preserved and stand uncontested -- all facts first unearthed in our report -- the company's blanket statement to the contrary when they knew otherwise may prove to have a boomerang affect," said Minkow.

The conference call also appears to have depreciated the significance of a seven-times resume misrepresentation by Mr. Denis Waitley, company director and contributor to the popular "Secret" DVD movie as a minor, non issue. However, FDI, in its response, lists the criminal penalty under 18 USC 47 1001 without interpretation. "I do not speak for any law enforcement agency, but based on my personal, first-hand experience with the authorities during my tenure at ZZZZ Best, I can say most definitely that they take misrepresentation seriously," said Minkow.

The new FDI response also addresses Usana's recent unveiling of a poll of 48,000 associates who, according to the conference call, were asked why they joined Usana, with three out of four saying they joined not to generate income or for the business opportunity, but rather for the "true Health" or product benefit. Asks Barry Minkow in the response, "If this poll represents reality, then why the severe distributor turnover if the expectation of the vast majority of Usana associates is only to purchase good vitamins?"

He adds, "With this expectation level, shouldn't we expect a huge retention rate for distributors because they only want 'True Health' and 'are not trying' to build a business? But that is not what one sees when they look at the below-the-iceberg numbers of Usana Health Sciences, Inc. and their astronomical attrition rates."

FDI concludes the response by asking a question: "When do enough red flags get raised before one says: 'I simply cannot rely upon the senior management or the Usana board of directors?' How many hidden 'secrets' must be uncovered before Wall Street realizes the issue with Usana Health Sciences, Inc. is not 'EBITA' or 'EPS' or even 'ROI,' which the analysts keep pointing to?" Minkow concludes, "When it comes down to it, the real issue is a five letter word: 'FRAUD.'"


Source: Fraud Discovery Institute, Inc