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07-19-2010, 07:41 AM
Medifast files lawsuit, Fraud Discovery Institute reopens investigation
Posted by Tracy Coenen on February 19, 2010
On Tuesday, Barry Minkow and the Fraud Discovery Institute issued a press release stating they were ending their investigation of Medifast Inc. (NYSE:MED) in order to focus on other companies.
One day later, Medifast filed a defamation suit in California against Minkow, FDI, Robert Fitzpatrick, William Lobdell, iBusiness Reporting, me, my company Sequence Inc., and an anonymous message board poster. The suit seeks general damages of $270 million, plus other damages.
The complaint filed by Medifast contains pages of self-praise, along with attacks on the character of those involved in the investigation of the company. In one example of the attacks, Medifast falsely refers to multi-level marketing expert Robert FitzPatrick as “… a self-claimed expert in pyramid schemes.” A brief look at FitzPatrick’s work clearly shows he’s not a “self-claimed” expert on pyramid schemes. In fact, regulators around the world have utilized his expertise. The Federal Trade Commission has received training from him. FitzPatrick has also testified in state and federal courts as an expert witness on pyramid schemes.
Medifast files lawsuit, Fraud Discovery Institute reopens investigation : Sequence Inc. Fraud Files Blog (http://www.sequenceinc.com/fraudfiles/2010/02/19/medifast-files-lawsuit-fraud-discovery-institute-reopens-investigation/)
Medifast lawsuit update
Posted by Tracy Coenen on March 7, 2010
A few weeks ago, Medifast Inc. (NYSE:MED) sued Barry Minkow, his Fraud Discovery Institute, me, my corporation, William Lobdell (a journalist working with Barry), Robert FitzPatrick (an expert witness on mutli-level marketing and pyramid schemes), and an anonymous message board poster (good luck with that).
Medifast sued us for daring to say that their Take Shape For Life multi-level marketing division is a typical recruiting scheme and looks like a pyramid scheme. FitzPatrick has done years of research on MLMs, in large part using the numbers publicly released by companies to demonstrate how the vast majority of participants lose money. He wrote two formal reports on Medifast and their numbers – - he basically showed that the company’s financial gains in the last year or two have come almost solely from their multi-level marketing division. (The first report is here, and the second report is here.)
How dare FitzPatrick say such a thing, especially when the numbers demonstrate exactly what he reported!!!
Medifast lawsuit update : Sequence Inc. Fraud Files Blog (http://www.sequenceinc.com/fraudfiles/2010/03/07/medifast-lawsuit-update/)
Minkow Anti-SLAPP motion filed in Medifast case
Posted by Tracy Coenen on May 7, 2010
The Medifast Inc. litigation over its multi-level marketing division Take Shape For Life (TSFL), and the criticism of it by me, Barry Minkow, Fraud Discovery Institute, William Lobdell, Robert FitzPatrick, and an anonymous message board poster who referred to the company’s board chairman Bradley McDonald as “Pimp Daddy Brad” marches on.
About a week ago, Robert FitzPatrick and I filed our anti-SLAPP motions with the court. This week Barry Minkow and Fraud Discovery Institute filed their anti-SLAPP motion with the court.
Medifast seems to be getting nervous and desperate. Their lawyers have been shamelessly lying to the court, and are trying all sorts of neat tricks to stall the anti-SLAPP motions. They now claim that they need all sorts of discovery done before they can reply to the anti-SLAPP motions.
If they’re so sure of their claims… and if we’ve told lies about them… and if they can prove it… why not proceed with the anti-SLAPP motions? Probably because the longer Medifast can drag this out and the more they cost the defendants in legal fees, the better their chances of shutting us up (and also shutting up any other citizen who dares to challenge the validity of the multi-level marketing business model).
Minkow Anti-SLAPP motion filed in Medifast case : Sequence Inc. Fraud Files Blog (http://www.sequenceinc.com/fraudfiles/2010/05/07/minkow-anti-slapp-motion-filed-in-medifast-case/)
Posted by Tracy Coenen on February 19, 2010
On Tuesday, Barry Minkow and the Fraud Discovery Institute issued a press release stating they were ending their investigation of Medifast Inc. (NYSE:MED) in order to focus on other companies.
One day later, Medifast filed a defamation suit in California against Minkow, FDI, Robert Fitzpatrick, William Lobdell, iBusiness Reporting, me, my company Sequence Inc., and an anonymous message board poster. The suit seeks general damages of $270 million, plus other damages.
The complaint filed by Medifast contains pages of self-praise, along with attacks on the character of those involved in the investigation of the company. In one example of the attacks, Medifast falsely refers to multi-level marketing expert Robert FitzPatrick as “… a self-claimed expert in pyramid schemes.” A brief look at FitzPatrick’s work clearly shows he’s not a “self-claimed” expert on pyramid schemes. In fact, regulators around the world have utilized his expertise. The Federal Trade Commission has received training from him. FitzPatrick has also testified in state and federal courts as an expert witness on pyramid schemes.
Medifast files lawsuit, Fraud Discovery Institute reopens investigation : Sequence Inc. Fraud Files Blog (http://www.sequenceinc.com/fraudfiles/2010/02/19/medifast-files-lawsuit-fraud-discovery-institute-reopens-investigation/)
Medifast lawsuit update
Posted by Tracy Coenen on March 7, 2010
A few weeks ago, Medifast Inc. (NYSE:MED) sued Barry Minkow, his Fraud Discovery Institute, me, my corporation, William Lobdell (a journalist working with Barry), Robert FitzPatrick (an expert witness on mutli-level marketing and pyramid schemes), and an anonymous message board poster (good luck with that).
Medifast sued us for daring to say that their Take Shape For Life multi-level marketing division is a typical recruiting scheme and looks like a pyramid scheme. FitzPatrick has done years of research on MLMs, in large part using the numbers publicly released by companies to demonstrate how the vast majority of participants lose money. He wrote two formal reports on Medifast and their numbers – - he basically showed that the company’s financial gains in the last year or two have come almost solely from their multi-level marketing division. (The first report is here, and the second report is here.)
How dare FitzPatrick say such a thing, especially when the numbers demonstrate exactly what he reported!!!
Medifast lawsuit update : Sequence Inc. Fraud Files Blog (http://www.sequenceinc.com/fraudfiles/2010/03/07/medifast-lawsuit-update/)
Minkow Anti-SLAPP motion filed in Medifast case
Posted by Tracy Coenen on May 7, 2010
The Medifast Inc. litigation over its multi-level marketing division Take Shape For Life (TSFL), and the criticism of it by me, Barry Minkow, Fraud Discovery Institute, William Lobdell, Robert FitzPatrick, and an anonymous message board poster who referred to the company’s board chairman Bradley McDonald as “Pimp Daddy Brad” marches on.
About a week ago, Robert FitzPatrick and I filed our anti-SLAPP motions with the court. This week Barry Minkow and Fraud Discovery Institute filed their anti-SLAPP motion with the court.
Medifast seems to be getting nervous and desperate. Their lawyers have been shamelessly lying to the court, and are trying all sorts of neat tricks to stall the anti-SLAPP motions. They now claim that they need all sorts of discovery done before they can reply to the anti-SLAPP motions.
If they’re so sure of their claims… and if we’ve told lies about them… and if they can prove it… why not proceed with the anti-SLAPP motions? Probably because the longer Medifast can drag this out and the more they cost the defendants in legal fees, the better their chances of shutting us up (and also shutting up any other citizen who dares to challenge the validity of the multi-level marketing business model).
Minkow Anti-SLAPP motion filed in Medifast case : Sequence Inc. Fraud Files Blog (http://www.sequenceinc.com/fraudfiles/2010/05/07/minkow-anti-slapp-motion-filed-in-medifast-case/)