Barry Minkow
In May 2008, the now defunct Fraud Discovery Institute, which claimed to be a consumer watchdog organization, reported that laboratory test results of Herbalife products showed lead levels in excess of limits established by law in California under Proposition 65. The Fraud Discovery Institute was founded by Barry Minkow, who served seven years in jail for stock fraud, and since disclosed that his company was profiting from the allegations by shorting Herbalife stock. Herbalife responded stating its products met federal FDA requirements and released independent laboratory tests it said proved the products did not exceed Proposition 65 limits.
On May 10, 2008 a suit was filed on behalf of a woman who developed lead-related liver complaints that she claimed were a reaction to a combination of Herbalife products. The suit was filed by lawyer Christopher Grell, cofounder of the Dietary Supplement Safety Committee and an associate of Barry Minkow. On June 17, 2008, the suit was expanded to add distributors who had supplied the woman with the Herbalife products, with Grell launching a website to offer persons who believe they were harmed by Herbalife products the chance of redress. In August 2008, Minkow retracted all accusations against Herbalife and removed any mention of the company from his web site. According to court documents, Herbalife paid Minkow $300,000 to shut up.
In 2011, Minkow started serving a 5-year federal prison sentence for securities fraud after pleading guilty to one count of conspiring to damage Lennar Corp. by attacking the Miami-based home builder in reports he acknowledged were filled with falsehoods.
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—Michael J. Barry (1817–1889)