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Pyramid scheme expert witness Dr. William W. Keep was in the news this week urging SEC chief Mary Jo White to intensify the investigation of Herbalife. The FTC recently closed pyramid scheme BurnLounge, the New York City online music store and Dr. Keep, business dean of the College of New Jersey, recommended that multilevel marketing companies submit their enforcement policies to regulators every five years. Herbalife is a global nutrition company founded in 1980. The company has over 7,400 employees worldwide, and its shares are traded on the New York Stock Exchange with net sales of $4.8 billion in 2013.

Herbalife.com commented on the recent ruling by the Ninth Circuit Court of Appeals in its decision in FTC v. BurnLounge, Inc. Herbalife issued the following statement:

Today’s decision by the United States Court of Appeals for the Ninth Circuit in the FTC v. BurnLounge, Inc. validates product consumption by participants as a legitimate measure of demand for multi-level marketing companies and rejects Bill Ackman’s fundamental thesis against Herbalife. This ruling from one of the country’s most influential courts is consistent with Herbalife’s position that the widespread demand Herbalife has demonstrated for its products, by members and non-members alike, confirms that it is a multi-level marketing company with proper business practices.

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In Evaluating and Understanding Credit Damage, credit damage expert witness Doug Minor writes:

One of the first steps is to examine the credit score itself. This seemingly straightforward action can become complex very quickly, as there are often numerous reports, with scores from multiple sources. So, a consumer will many times have a number of credit scores, each reflecting the data and scoring criteria of its source. Understanding the different features of each type of score and report is an important evaluation skill that an expert should have to accurately quantify credit damages.

For example, is the score a FICO score, or a Vantage score? Is the report a business-to-business (B2B), or a business-to-consumer (B2C) product? Was it a residential mortgage credit report (RMCR), or a three repository merged credit report (TRMCR)? When was the report produced? All of these are typical questions that an evaluator will ask, and in most cases they are necessary.

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Dentistry expert witness Dr. Gary Pearl testified on behalf of the Connecticut Department of Public Health in the case against Dr. Rashmi Patel. State health officials are trying to permanently revoke Patel’s dental license after the death of Judith Gan. Gan died an hour after getting implants and 20 teeth extracted in Patel’s office. During the procedures, the retired librarian’s vital signs dropped and dental assistants asked him to stop. By the time 911 was called, Gan had no brain waves or heartbeat.

While Dr. Patel says he did nothing wrong, state health officials suspended his license in April. Dr. Pearl testified “It’s my belief that (Gan) did not have to die to receive this dental treatment and it is because of… Patel’s negligence that she died.”

In 2013 a male patient was being treated for an extraction that resulted in a six day hospital stay for heart and lung damage. The patient’s throat pack was sucked into his lungs.

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In Trade Secret Misappropriation of Software, trade secrets expert witness Gary Stringham writes on his blog:

A trade secret is something that provides an advantage to the company that owns it. It could be formulas, software, even lists of names. A trade secret is not disclosed publicly (unlike a patent).

If a company wishes to mark something a trade secret, it must proactively take action to protect those secrets. Employees of the company should have signed an agreement to keep secret company confidential information. If the trade secret needs to be disclosed to non-employees, those people need to first sign non-disclosure agreements.

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Child abuse expert witness Dr. James Lukefahr testified in the case against Matthew Aranda following the death of Aranda’s adopted daughter Melody Velasquez, 3. Aranda claims that she accidentally fell down a flight of stairs but medical experts have testified that the death was a homicide. Dr. Lukefahr, director of the Children’s Hospital of San Antonio, told the jury “If someone or something could cause her to be thrown or pushed down the staircase at a very high rate of speed, then that conceivably (could) cause some of those fatal injuries that she had.” Melody suffered broken limbs, ribs, multiple bruises and head injuries.

The professor of pediatrics testified recently before the Commission to Eliminate Child Abuse and Neglect Fatalities in San Antonio, TX. He presented statistics showing that in 2013 Texas had 156 child abuse and neglect deaths. In 2011 there were 231, and 280 in 2009.

The Commission to Eliminate Child Abuse and Neglect Fatalities held its first public meeting this week at the University of Texas, San Antonio on June 2-3, 2014. CECANF was established by Public Law 112-275 (112th Congress), the Protect Our Kids Act of 2012, to develop a national strategy and recommendations for reducing fatalities across the country resulting from child abuse and neglect. The meeting in San Antonio was the first opportunity for Commission members to gather detailed information and insight related to federal policy, research, and practice associated with child abuse and neglect fatalities, with a practice focus on Texas.

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In Evaluating and Understanding Credit Damages, credit damage expert witness Doug Minor writes:

Credit damage is a somewhat new field of expertise, and many attorneys and consumers have not yet been exposed to its potential and importance. But this is changing, as more and more cases demonstrate that such damage can indeed be quantified. Credit damages can pertain in a variety of cases: divorce, wrongful foreclosure, personal injury, breach of contract, identity theft, fraud, and medical malpractice, to name a few.

Now more than ever before, award amounts include compensation for credit damage. And as my own experience has confirmed, the amounts can easily reach well into the six-figure range. Thus, the competence of the experts retained in such cases is important.

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Business expert witnesses may consult on joint ventures, shareholder disputes, financial fraud and business damages. Bruce Dubinsky, Managing Director in Duff & Phelps’ Dispute Consulting practice and Association of Certified Fraud Examiners Regent, will be a featured speaker and present a session titled “Preparing for Civil Litigation in a Fraud Examination” at the 25th Annual ACFE Global Fraud Conference in San Antonio, TX, being held June 15-20, 2014. Bruce will share his real-world experience serving as an expert in the fraud examination field, including testifying in the “Madoff 5” criminal trial in the United States District Court for the Southern District of New York as the fraud examiner for the United States Department of Justice.

Attendees will also learn how to:

Manage the case discovery process from the expert and client perspective Successfully write an expert report to convey your opinion Testify effectively at trial or deposition to illustrate your view

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Gun range expert witness Albert Rodriguez testified that the County Line Shooting Center, San Marcos, TX, was built in the wrong place and is a “major threat to human life.” Rodriguez is a former Texas Department of Public Safety gun range master and testified that hundreds of bullets have been fired onto neighboring property. Property owners filed a lawsuit to have the range shut down or brought up to safety standards.

In Outdoor Shooting Range Best Practices, the Minnesota Department of Natural Resources describes specifications for the shooting range backstop.

A backstop is a device constructed to stop or re-direct bullets fired on a range A backstop is the key component providing range safety and use for people in the area in and beyond a rifle or pistol range. Current NRA and NSSF safety philosophies are predicated toward range self-containment of shot rounds, i.e., “if it’s shot here, keep it here.” A properly constructed backstop at a rifle and/or pistol range are usually constructed out of a core material of compacted soil, rock or crushed cement, covered by rock-free earthen material, up to a recommended height of twenty (20) feet at a 1:1 slope (soil type dependent), with a 4 foot-wide flat top. Backstop width will be dependent upon the numbers of shooting stations the range operator wants installed at the firing line.

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In Failure to Supervise: An Inside Perspective, securities expert witness Alan Besnoff, Securities Expert Witness & Litigation Support, LLC, writes:

What are the steps that a Supervising Principal can and should take to assure adherence to FINRA regulations, the highest of ethical standards, and Supervisory duties are being met?

It is my belief that it is most important for the Supervising Principal to develop and maintain a culture of absolute adherence to FINRA regulations, company compliance guidelines, and the highest of ethical standards. To accomplish this desired culture, the Supervising Principal must always be consistent in his or her dealings with brokers and in demonstrating such a mindset in all of the Principal’s behaviors, actions, and policies and procedures.

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Allergy and immunology experts may consult on issues involving asthma, allergic reactions, indoor environment, and drug allergies, among other topics. On his website allergy expert witness Dr. Ronald H. Saff, Assistant Clinical Professor of Medicine at the Florida State University College of Medicine in Tallahassee and principal at the Allergy & Asthma Diagnostic Treatment Center, answers questions on allergy skin tests:

How are skin tests done?

There are several different types of allergy tests. Most allergy skin tests are “scratch tests” – the skin is scratched with a small plastic “pick” which has a drop of the specific allergen on the end. It is irritating and can burn and or itch; it is not painful. Scratch tests do not involve needles or blood. The scratching may take only seconds or take a couple of minutes depending on what you are being tested for. Once the scratching is done we wait 15-20 minutes and then read the results. A positive reaction usually looks and feels like a mosquito bite. Sometimes scratch skin tests are followed by intradermal tests. These are not always necessary and depend on what is being tested. If necessary a tiny amount of allergen is injected into the skin with a very small needle. It is not like a typical “shot”. This too may itch or burn. One benefit of skin tests such as these is that the results are known before you leave the office.

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