Mark Nutritionals' Founder Hit by FTC Avalanche

WASHINGTON--The Federal Trade Commission (FTC) announced the full $155 million judgment against Mark Nutritionals' founder, Harry Siskind, for false and misleading advertising is expected to be reinstated by a court later this month. Siskind initially settled with FTC in December 2003, agreeing to pay a total of $1 million to FTC and the states of Texas, Illinois and Pennsylvania; the agreement contained a $155 million avalanche clause if the court found Siskind misrepresented his financial state.

FTC (www.ftc.gov) initially took action against Siskind, Mark Nutritionals and its co-founder, Edward D'Alessandro, Jr., in December 2002, alleging they used false and unsubstantiated claims to convince millions of consumers to purchase Mark Nutritionals' Body Solutions Evening Weight Loss Formula. The company and D'Alessandro settled with FTC in October 2003, with D'Alessandro agreeing to pay $140,000 with a $155 million avalanche clause. Mark Nutritionals filed for bankruptcy in September 2002.

In this new action, the order to reinstate the $155 million judgment against Siskind was filed in U.S. District Court, Western District of Texas, San Antonio Division, on Oct. 21. The motion to enforce the suspended order stated Siskind "developed a calculated strategy to hide from authorities those funds that he had unlawfully taken from consumers" and misrepresented the nature of several loans and stock holdings in sworn financial statements to FTC, which led to the commission suspending the total judgment.

If the court approves the proposed settlement--which has been OK'd by Siskind--the judgment would be due immediately.