Rod Cook opinined:
MLM Illegal PrePaid Legal, Medifast, Usana, Herbalife - MLM CRITICS MINKOW, ROBERT FITZPATRICK, JON TAYLOR..... USANA STOCK SCAM?
ROBERT L. FITZPATRICK NAILED TO THE WALL IN THE MEDIFAST CASE!

1 April 2011 -- No April Fools Day joke here! Editor's opinion note: Here is the lawsuit by Medifast, read the end of it! Anti-MLMer Robert L. Fitzpatrick is going to be paying some serious damages to Medifast. What does that mean? Robert L. Fitzpatrick will be living out of the trunk of a car... and eating at swank garbage cans! Minkow we will skip since he will be back in Club Fed (Federal Prison)....

ROBERT L. FITZPATRICK

31 March 2011 - Editor’s Opinion Note: This part of the deposition was poor in your Editor's opinion. Section II, page 45 of Robert Fitpatrick’s book “False Profits” is titled “The Scene of the Crime.” The terms used in this Section II “Scene of the crime” are “we and “us". They leave no doubt that Robert Fitzpatrick was a participant in the criminal “Airplane” Pyramid Scheme. Thus, just like Barry Minkow, Robert Fitz participated in criminal activity. The only difference is that Barry Minkow was caught and jailed. Barry Minkow and Robert Fitzpatrick still have one more thing in common, which is recidivism and falling back into their criminal activity by lying and attacking the MLM Industry. Ed. Opinion Note: Barry Minkow is headed back to prison, too bad his recidivist buddy Robert L. Fitzpatrick is not going with him!...

Ed. Note: In my opinion the FBI is no doubt looking at Minkow’s earlier short selling of Herbalife, Prepaid Legal, Medifast. No doubt they are looking at his co-horts Jon Taylor and Robert Fitzpatrick in those fraudulent short sells of MLM publicly traded...

Editor’s Notes: Minkow’s Fraud Discovery (Creation I call it) Attacked MLM Public Companies and successfully lowered their stock prices. The case he is being convicted on is a large house builder. However I bet some of these MLM Companies may have contributed information to the legal action taken against Minkow since he attacked them:

PrePaid Legal, Herbalife, USANA, Medifast

It is too bad that his cohorts in some of these Minkow scam MLM short sells Robert Fitzpatrick and John Taylor were not included in his latest short selling scam. They could have gotten hand cuffs too!...

Editors opinion note: Minkow was aided by Robert Fitzpatrick who, by his past actions, is an un-convicted felon in your editor's opinion....

opinion note: It would be nice if the SEC gave Minkow and Fitzpatrick adjoining cells as a result of their investigation of Fraud Discovery Institute....

BARRY MINKOW - FDI -ROBERT FITZPATRICK - CAUGHT IN SHORT SELL
I asked our colleagues at Quatloos for their thoughts on this. Wserra was kind enough to reply here.

I find it hilarious Kerry Lee Hein viciously attacks MLM critics with nonsense personal attacks and totally unfounded criminal allegations like these. Barry Minkow has shorted stock on several occasions and paid the price. There is zero evidence that anyone who provided a professionally prepared report to him was in any way involved in these stock shenanigans. Please see the judge's decision page 21. But, our bonehead colossal MLM failure Kerry Lee Hein (Ohein56) was quick to start a thread accusing MLM critics of criminal activity. He is the same knucklehead who claims the MLM critics attacking MLM have no evidence themselves. Interestingly, he has yet to refute anything he disagrees with by producing facts of course.

Now as to the most recent case Heiney and Cook have been blathering about, here is the judge's decision. The scambusters had a resounding victory. Minkow and Coenen's motions were granted and they are out and Minkow got his cost of courts awarded to him. Fitzpatrick's motion was granted in part.

Medifast can proceed on the issue of Fitzpatrick making criminal allegations about them violating state law, however Medifast has to prove those allegations. I am sure Mr. Fitzpatrick's report was well researched and substantiated as is his custom from what I have read. Will Medifast be able to prove that there are sufficient retail sales (those to folks that are not in the pay plan) to demonstrate there is no violation of the pyramid statue in CA? That is the only issue that will go forward. I recall a similiar suit where claims of retail sales were decided by the judge to be form over substance as the payout though alleged to be tied to the product in essence really was a recruitment payment as there was such an appalling lack of retail sales to the general public.

I watch the MLM industry and retail sales are generally laughable. Melaleuca has a relatively high number compared to many MLMs and only 60% of the purchasers are retail customers. USANA I believe was running around 20%. Ignite / Stream electric had 2.75 customers per rep the last time I calculated it. This lack of retail sales is one reason why the vast majority of reps are losing money in these deals. The real money is in being at the top of the pyramid recruiting. The little guys sure aren't selling enough to even cover their own purchases. The only way Medifast can win is to basicly make all their numbers public and prove that there is no way a reasonable person would conclude they violated CA law I take it. Robert Fitzpatrick always documents everything carefully and I think his conclusions have always made good sense. This is definitely one to watch.

Soapboxmom