SAN DIEGO, Calif./EWORLDWIRE/Oct. 29, 2007 --- On October 18, 2007, the Fraud Discovery Institute Inc. (FDI) released a report detailing the activities of Usana Health Sciences Inc. (NASDAQ: USNA) and its underground operation in China. The New York Post carried the story of an alleged 30,000 undisclosed Usana associates actively conducting multi level marketing businesses in China that impacted downlines by the false inflation of sales in the U.S. and Canada, Australia and Hong Kong.With the release of video footage of an undercover meeting that took place at the Usana Hong Kong offices on October 10, 2007, the discussion about the accuracy and authenticity of evidence previously presented by FDI regarding whether Usana really does have 30,000 undisclosed associates working illegally in and through China appears to be settled. FDI released the unabridged and unaltered video footage of Usana executive Mr. Lesley Law, who possesses the title of Distributors Services Director. In the 40-minute, in-person videotaped undercover meeting that took place with two prospective associates, Mr. Law admits to the 30,000 associates.
"Watch between the time of 32:30 (minutes into the video taped meeting) and 33:00 (minutes into the video footage) and the devastating admission is made. The undercover video video speaks for itself," said FDI's Barry Minkow.
"Mr. Law is even wearing a Usana golf shirt when he makes the admission," added Minkow. "Compare the statement by Mr. Law confirming 30,000 Usana associates in China with Usana CFO Gil Fuller's statement made on July 19, 2006, during the Usana second quarter conference call where Mr. Fuller states unequivocally that 'we don't have any associates in China'."
"The seriousness of this newly revealed, undeniable evidence is its materiality," commented Minkow. "Take away the illegal 30,000 Usana associates in China confirmed by Mr. Law, and the company is not profitable. The damage done to Usana appears to have a domino effect in that it would tend to impute credibility and be consistent with other evidence released by FDI about Usana's operations in China which include the placing Chinese nationals in down lines in countries outside of China and Hong Kong.
"For Usana, this is extremely problematic because on the one hand, Lesley Law is a upper middle management person and keenly aware of how things work in China and Hong Kong. The other hourly employees who corroborate through taped phone calls the exact same concealment of Chinese nationals come from people who have no motive to lie, no stock options riding on the information and were simply revealing how business is typically done in China by Usana."
To view the evidence, visit 'http://www.cheatinginchina.com'.
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