United Sciences of America, Inc. (also known as USAI) was an American company that was accused of fraud and shut down in the 1980s. USAI manufactured nutritional supplements such as "Master Formula," "Calorie Control Formula," "Fiber Energy Bar," and "Formula Plus," distributing them via multi-level marketing (aka pyramid marketing). The company experienced rapid growth in the 1980s, was heavily endorsed and marketed by various celebrities, and was marketed via over 140,000 distributors. However, an expose by NBC revealed fraudulent practices, and this was followed by multiple lawsuits from Attorneys General in three different states. Several of the company's advisors resigned, and USAI declared bankruptcy in 1988. Multi-level marketing (MLM) is a business model that combines direct marketing with franchising. ... The National Broadcasting Company (NBC) is an American television network headquartered in the GE Building in New York Citys Rockefeller Center. ... In most common law jurisdictions, the Attorney General is the main legal adviser to the government, and in some jurisdictions may in addition have executive responsibility for law enforcement or responsibility for public prosecutions. ...

Background

The company was based in Carrollton, Texas, and chaired by Robert Adler, with president Jerris Leonard, who had been a former U.S. assistant Attorney General under Richard Nixon. Products were marketed with claims such as that they helped prevent cancer, AIDS, arthritis, alcoholism and heart disease.^[1] Location in Dallas County and the state of Texas Country State Counties Dallas, Denton, Collin Government  - Mayor Becky Miller Area  - City  36. ... Robert Adler Robert Adler (December 4, 1913 - February 15, 2007) was an Austrian-American inventor who held numerous patents. ... Richard Milhous Nixon (January 9, 1913 – April 22, 1994) was the 37th President of the United States, serving from 1969 to 1974. ... Cancer is a class of diseases or disorders characterized by uncontrolled division of cells and the ability of these to spread, either by direct growth into adjacent tissue through invasion, or by implantation into distant sites by metastasis (where cancer cells are transported through the bloodstream or lymphatic system). ... Acquired Immune Deficiency Syndrome or acquired immunodeficiency syndrome (AIDS or Aids) is a collection of symptoms and infections resulting from the specific damage to the immune system caused by the human immunodeficiency virus (HIV). ... Arthritis (from Greek arthro-, joint + -itis, inflammation; plural: arthritides) is a group of conditions where there is damage caused to the joints of the body. ... Alcoholism is the consumption of, or preoccupation with, alcoholic beverages to the extent that this behavior interferes with the drinkers normal personal, family, social, or work life, and may lead to physical or mental harm. ... Heart disease is an umbrella term for a number of different diseases which affect the heart and as of 2007 it is the leading cause of death in the United States. ...

Receiving endorsements from several celebrities, including William Shatner, Chris Evert, and Gary Carter, the company experienced rapid growth in January 1986. It had a team of 140,000 distributors, with new distributors signing on at a rate of over 10,000 per month. The company was earning $US 8 million, and company executives were projecting sales over $100 million in 1986 along with the astounding prediction of $US 1 billion by 1989. Prospective distributors were issued a videotape narrated by Star Trek star William Shatner, with an elaborate sales pitch that both promoted the product, and implied that the modern world with its modern technology had "a deadly price tag" such as toxic chemicals and nuclear waste. The tape promoted USAI chairman Robert Adler as a visionary out to change the world. Another tape was targeted towards athletes, and was narrated by Chris Evert, with other athletes such as Bill Rodgers and Gary Carter stating that USAI could help distributors to achieve financial security. William Alan Shatner (born on March 22, 1931) is a Canadian actor who gained fame for playing James Tiberius Kirk of the USS Enterprise in the television show Star Trek from 1966 to 1969 and in seven of the subsequent movies. ... Christine Marie Evert (born December 21, 1954) is a former World No. ... Gary Edmund Carter (born April 8, 1954), nicknamed Kid, is a former Major League Baseball Hall Of Fame catcher from 1974-1992. ... The current Star Trek franchise logo Star Trek is an American science fiction entertainment series and media franchise. ... Political Punk band from Victorville, Ca WWW.MYSPACE.COM/NUCLEARWASTEX ... People named Bill Rodgers: Bill Rodgers (politician), British politician Bill Rodgers (athlete), American marathon runner This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...

USAI had a 16-member executive advisory board including notable scientists such as Michael DeBakey and Dr. Alexander Leaf, but these members were paid consulting fees ranging from $5,000 to $20,000, and/or received research grants from the company which could be worth $50,000 to $100,000.^[1] Michael Ellis DeBakey, M.D. (born September 7, 1908), is a pioneering cardiovascular surgeon and researcher. ...

Fraud

In October 1986, USAI was the subject of an expose produced by the NBC network, which revealed the company’s use of fraudulent scientific claims and deceptive advertising.^[2] In November, the company failed to mail some of its commissions, and by December, the company's checks to distributors were bouncing.^[1] The National Broadcasting Company (NBC) is an American television network headquartered in the GE Building in New York Citys Rockefeller Center. ...

The FDA subsequently investigated USAI for pyramid-scheming, the use of false and misleading promotional materials, and for making prohibited disease treatment claims. Attorneys General in California, New York and Texas simultaneously filed lawsuits ordering USAI to change its marketing plan and sales claims. Several of the board's advisory members immediately resigned, including Leaf and DeBakey. A few others said that they were "misquoted or improperly used in USA's sales materials." Leaf told Money magazine, "They used my name with false statements to advertise the products." Within a few months, USAI filed for bankruptcy and ceased operations in 1987. USAI’s deceptive sales and marketing tactics were reviewed in several articles published in 1986-1987.^{[3][4][5][6][1]} In February 1988 the company executives told the FDA that they were going to make labeling changes and bring everything into compliance, but a month later they filed for Chapter 7 bankruptcy liquidation. hi “FDA” redirects here. ... In most common law jurisdictions, the Attorney General is the main legal adviser to the government, and in some jurisdictions may in addition have executive responsibility for law enforcement or responsibility for public prosecutions. ... Official language(s) English Capital Sacramento Largest city Los Angeles Largest metro area Greater Los Angeles Area  Ranked 3rd  - Total 158,302 sq mi (410,000 km²)  - Width 250 miles (400 km)  - Length 770 miles (1,240 km)  - % water 4. ... “NY” redirects here. ... Official language(s) No official language See languages of Texas Capital Austin Largest city Houston Largest metro area Dallas–Fort Worth Metroplex Area  Ranked 2nd  - Total 261,797 sq mi (678,051 km²)  - Width 773 miles (1,244 km)  - Length 790 miles (1,270 km)  - % water 2. ... For other uses, see Money (disambiguation). ... Chapter 7 of the Bankruptcy Code governs the process of liquidation under the bankruptcy laws of the United States. ...

See also

• Dr. John A. Wise, USAI scientist

References