| U.S. Federal Trade Commission |
FTC News Release, Oct 22, 2004
Founder of Mark Nutritionals Agrees to Entry of $155 Million
Judgment Against Him
Judgment Would Settle FTC Charges That Harry Siskind Lied About His Net Worth To Avoid Penalties For Violating Federal Law
Harry Siskind, former President of
Mark Nutritionals, Inc., the now defunct maker of Body
Solutions Evening Weight Loss Formula, has agreed to settle
charges by the Federal Trade Commission that he falsified his
financial statements in an effort to hide assets from the
Commission and to obtain a more favorable settlement to a
lawsuit filed against him by the FTC. The agreed order,
announced today, calls for a judgment of $155 million to be
entered against Siskind, personally, and provides for findings
by the U.S. District Court for the Western District of Texas
that Siskind failed to disclose material assets and materially
misrepresented the value of assets in financial statements he
provided to the FTC and the court. If the district court
approves the proposed settlement, the $155 million would be
due immediately.
Original Suit Against Siskind
In December 2002, the Commission sued
Siskind and several other defendants alleging that they
engaged in a nationwide scheme to bilk millions of consumers
out of $155 million. The FTC reached settlement agreements
with all defendants in the fall of 2003. The settlement with
Siskind required him to pay $500,000 and was based on his
sworn financial statements that he had no additional assets.
The FTC later uncovered evidence establishing that Siskind
falsified the financial statements, upon which the Commission
relied in accepting the original settlement.
The original settlement with Siskind also
contained a $155 million suspended judgment and provided that,
if his financial disclosures contained misrepresentations, a
judgment for the full $155 million would be entered against
him.
Commission’s Motion to Reinstate the
$155 Million Judgment
In May 2004, the Commission filed a motion
detailing Siskind’s false financial statements and asking the
district court to reinstate the $155 million judgment against
him. The Commission’s motion alleged that Siskind
misrepresented the nature, cost, and value of assets worth
approximately $600,000 and failed to disclose assets worth an
additional $300,000. The FTC charged that Siskind’s actions
were not mere oversights, but rather part of an elaborate
scheme to defraud the FTC and the district court. Just prior
to a hearing on the Commission’s motion, Siskind agreed to the
reinstatement of the full suspended judgment in the amount of
$155 million. The proposed settlement also would require
Siskind to cooperate fully with the Commission in all attempts
to collect the amounts due, including cooperating with
attempts to locate, liquidate, and/or transfer assets.
The stipulated order to reinstate suspended
judgment for $155 million against defendant Harry Siskind was
filed in the U.S. District Court, Western District of Texas,
San Antonio Division, on October 21, 2004. The
Commission vote authorizing staff to file the stipulated order
was 4-0-1, with Commissioner Pamela Jones Harbour recused.
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The text in this article was prepared by the U.S. Federal Trade Commission.