Now that Barry Minkow has settle his dispute with USANA, its time for the former criminal, and founder of the The Fraud Discovery Institute to look for a new target. Unfortunately for Pre Paid Legal, they are it.
The Fraud Discover Institute released its first ever “Top 10 Red Flags for Fraud” list and it details many alleged claims of fraud and misrepresentations made against Pre-Paid.
The list is backed by MLM expert, Robert Fitpatrick, who explains the sources and mathematical equations used to back up the claims on the top ten list, “News media exposes and lawsuits have combined with a mathematic threshold of ‘information saturation’ to bring [Pre-Paid Legal] to this position of lost faith within its market. The saturation point is based on the mathematical limits that the company has already reached in the North American market. Unlike other multi-level marketing schemes that also quickly saturate home markets, [Pre-Paid Legal] cannot expand to other countries with its current product offering.”
Minkow used a strange analogy when describing the motivation behind the creation of the list, saying that they list was designed to show a similarity between Pre-Paid’s recent second quarter announcement and an iceberg, “Both an iceberg and Pre-Paid Legal’s reporting of their earnings have one thing in common: Their true realities exist below the surface and are concealed from the casual observer’s sight.”
The list is a compilation of claims about the company withholding info about recruitment, reporting less than accurate numbers, declining sales, declining number of associates and artificially inflating stock prices.
Minkow, along with the FDI spent years torturing USANA, and now that everything has been settled, he had to find a new target. Unfortunately for Pre-Paid Legal, they are it. Minkows new website dedicated to bringing down Pre-Paid (prepaidillegal.com) is pretty fancy and it seems as if he is really committed to bringing Pre-Paid down. I’m sure there will be much more to the story as Pre-Paid responds to the allegations made by the FDI.
Popularity: 12% [?]
Saturated market?…We haven’t scratched the scratch! You ain’t seen nothing yet!
Comment by Crusader — October 9, 2008 @ 7:37 am
[...] in the year, Pre-Paid ran into some problems with Barry Minkow and the Fraud Discovery Institute. Although there has been no word lately, Minkow can be relentless [...]
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[...] While many businesses are shutting down or laying off employees, Pre-Paid Legal believes they are well positioned, despite its recent release of membership results and the ongoing problems with Barry Minkow. [...]
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