It's Barry Minkow vs. Herbalife

You may remember Barry Minkow as the young San Fernando Valley entrepreneur who was convicted of defrauding investors of millions of dollars in his ZZZZ Best carpet-cleaning company. That was twenty years ago. Minkow is now a born-again fraud fighter (and pastor) who lives in San Diego. The most recent target of his Fraud Discovery Institute is nutritional supplements company Herbalife.

In response to Minkow's investigations, the Los Angeles-based company has been on the defensive lately. In late April, company president Gregory L. Probert resigned after Minkow's firm discovered that the executive did not earn an MBA has he had claimed. Last month, Herbalife was busy rebutting lab tests Minkow claimed showed high levels of lead in some of its product.

Herbalife's stock sunk in light of these developments, which could benefit Minkow, reports the Los Angeles Business Journal (subscription required). Minkow says he has shorted the company's stock (meaning he would benefit if the shares fell) and that he has given the FBI and Securities Exchange Commission access to his online trading accounts. Shorting the stock is his way of financing his ongoing probe into the company, he said.

“Why am I good at what I do? I’m a liar and a thief,” said Minkow, who was in town last week working on a deal for a possible TV pilot based on his life story. “I think in the same way as the people I go after.”

-- Jesus Sanchez

Photo: Associated Press

Comments

[Jim M.]

Barry Minkow is a perfect example of how Jesus can change a person's life for the better.

GO BARRY GO!!!

[NV]

it takes a thief to catch a thief !

[H. Agustsson]

What is happening?

Is a thief stealing from hard working honest people ? (by shorting the stocks in his hate-campeign)?

In my opinion...Yes.

It is sad to see his justification and that some people actually buy it from him...that is amazing.

I pray for you Barry...you are still on the wrong track buddy !

[Andrew]

The idea that anyone would ever take this guy seriously is absurd.

He's shorted the stock, admitted by word and demonstrated by deed that he is a liar and by my definition a sociopath, and people still listen? Life is amusing, indeed.

Does anyone remember the ZZZ Best fraud? If not, and if you're tempted to believe this "I'm really in this to rid the world of evildoers like Herbalife but I'll go ahead and profit financially by shorting the stock first", then I recommend you brush up on your Barry Minkow history.

Seriously.

[Alexander]

I love Barry! One of the best examples of a transformed life I know! Is Jesus real? No doubt in my mind!

[Julia]

Sounds like he is the type of person who has no life and tries his best to dethrown those who are successful!! Hater!!

[arthur pahl]

The way some People selfrightously comment on Barry and his work, is so typical for the present situation of America, with the attitude of "Once a liar, always a liar and besides,we are better than you". Well what about Saul who became Paul and what about the Murderer on the Cross who was forgiven? Do we always need to judge someone who has failed once and who has paid the price for what he has done, and who has shown during decades of a examplatory Life, that a change is possible? Go back to your own failures and do selfexamination, before you dragg down People who have failed and who do understand why they have failed!
Go Barry, Society needs what you are doing!

From Germany,

Arthur Pahl

[Janice]

I'm such a fan of Barry. I lived just down the street from him when he started ZZZZ Best, and I was his age. I was shocked when he got into trouble, but admired him nontheless for being creative in his wrongdoings (he was very young). Now that he is using his talent to help society, he has become a true hero. You're doing great, Barry!

[lljones]

Barry finds something wrong with a publicly traded company, reports on it, such as Herbalife and then makes moneh shorting their stock. Believe me, he has an underlying agenda alright. Great service Barry, keep making money off the backs of others while making it look like being a Born Again Xtian obsolves you.

[Jeff Iversen]

It's true. Barry is a liar and a thief. Who better to expose a liar and thief? Only one problem. Now he is using lies and gossip to attack legitimate companies in order to make money for himself when he shorts their stock.

Why did Barry claim that the SEC, IRS and FBI were investigating Usana Health Sciences because of the fraud Barry exposed? No such thing ever happened but it made the stock go down. Why did he claim that they were "Cheating in China" and doing business illegally when no such thing was happening? No such thing; but the stock went down.

Usana recently went over the 3 billion dollar mark in sales. Stock went up 9% the other day on news that it beat it's sales projections for the second quarter. Why didn't Barry succeed in running them out of business (2007) as the "fraud" he claims it to be? Why was Barry forced to take down all his defaming remarks about Usana off of the Internet?

Barry is the fraud. He knows how much money he paid to short Usana stock and knows how much he made doing it. He knows how many lies and half truths he told in order to destroy the company. Barry, Usana is still standing and you will be remembered like a fart in the wind.

[Kathy L]

Barry is the real deal. Those who have made disparaging comments don't know him. He is absolutely brilliant and does know what he's doing - look at his professional track record since his conversion and release. Everyone has something in his/her life he/she is ashamed of - perhaps the unkind statements people have made about him are from people who were unable to overcome and change, as Jesus has done in Barry's life. Put simply - you just don't know what you're talking about. Come visit and get to know him - I challenge you.

[Tony]

I feel sorry for all of you who are passing judgement on Barry.If think that you've never done anything wrong then you're in denial and you lie; maybe not to me, but you're lying to yourself and to God. The Scripture say's: ALL have sinned and fall short of the glory of God...that means YOU too. Just remember that the same stones you're casting at Barry will be the same stones that are cast back at you in the end. I'll pray for you...

[jeff]

MLM (amway, usana, herbalife, etc.) is the biggest scam in the world. Millions of well-meaning people lose their lunch trying to do the mlm business every year. And yet, very few business schools, government officials, politicians, judges, community activists, or journalists seem to want to address the fundamental fraud associated with MLM. Most people cannot sell to their friends and family, and never will. Most people who do MLM never even make enough to cover their personal product use costs. It is not a business that "anyone" can do. MLM companies are supposed to have 70% of their stuff sold to end users who are not associates, yet almost all of most companies' retail is wholesale to reps. At least Minkow is standing up.

[Jun]

I happen to have a lot of friends who have taken the herballife weight loss program and have had it work. So...I'm not really convinced he is so bad.