Timothy J. Quill, M.D.
Stephen Barrett, M.D.
Don Lapre is a fast-talking character who has been selling "get rich"
opportunities for many years. His infomercials describe how, while
living in a "tiny one-bedroom apartment, "he became a millionaire by
placing hundreds of "tiny little ads" in newspapers. Doug Grant is a
"nutritionist" who claims to have vast experience in advising people
about health and fitness. Recently, they teamed up to promote "The
Greatest Vitamin in the World," which Grant reportedly formulated and
Lapre is marketing through infomercials and Web sites. This article
analyzes their current sales pitch and explains why we believe you
should ignore their advice.
Lapre's Background
Phoenix, Arizona-based Don Lapre is easily recognizable with his
youthful good looks and exaggerated mannerisms. He has reaped many
millions of dollars doing business under a long list of company names,
but in 1999, he filed for Chapter 11 bankruptcy. In 2000, the Phoenix
New Times published a lengthy investigative report [1] that revealed
the following:
Lapre did not graduate from high school.
In 1988 he launched a dating service and got married. About two months
later he declared Chapter 7 bankruptcy.
In 1990, he and his wife opened a credit repair business called
Unknown Concepts, which led prospective customers to believe that they
could obtain credit cards and other benefits but merely provided
contact information about companies that might provide them. The
Arizona Attorney General's office charged the couple with violating
the state's Consumer Fraud act and obtained a consent judgment
permanently enjoining from operating, assisting or participating in
any credit services organization and from engaging in any
misrepresentation, deceptive act or practice, false promise or
concealment of material fact in connection with charitable
solicitations or marketing of credit repair programs. The defendants
were ordered to pay civil penalties and more than $5,000 restitution
to complainants.
Lapre then began selling a 36-page booklet explaining how to recover a
Federal Home Association insurance refund after paying off a home
mortgage. He also began offering "900" phone lines. According to
Lapre, placing newspaper ads enabled him to take in $50,000 per week.
In 1992, Lapre began broadcasting "The Making Money Show with Don
Lapre," which promised viewers that they could make money as easily as
he had. For several years the show was ranked among the ten most
frequently broadcast cable television infomercials. The principal
product was Lapre's "Money Making Secrets," a package of booklets,
tapes, and commonsense tips for placing ads and operating a 900-number
business. The product was sold through New Strategies, whose parent
company was Tropical Beaches. Soon after purchasing the package,
buyers would be telemarketed by a sales representatives who offered
additional psychic, dating, entertainment, and chat 900 lines, plus
free Web sites that together could cost hundred or even thousands of
dollars. The real income opportunity was minimal, but many customers
complained that they didn't even receive what they paid for.
In 1994, Lapre was forced to pay the State of Arizona $45,000 for
unemployment and withholding taxes that he neglected to file in 1993
and 1994.
In 1995, the Michigan Attorney General took action against Lapre for
failing to register his business. (A Better Business bureau report
indicates that Lapre, Bob Smeal, Sandra J. Daly, and New Strategies
entered into an Assurance of Discontinuance with an order that
provided for restitution, payment of fees and proper registration
before doing any further business in Michigan [2].)
In 1999, Lapre had filed for Chapter 11 bankruptcy on behalf of
himself, New Strategies, Tropical Beaches, Dolphin Media, Don's Making
Money, and National Reminder Service. His filing listed assets of $9
million and liabilities of $12.5 million.
In 1997, the Internal Revenue Service issued a lien of $957,909.49
against Donald and Sally Lapre for failing to pay delinquent taxes.
Many former Lapre customers have posted descriptions of their
experience with the "Making Money" package. We could not find a single
person who reported making a profit. Most lost hundreds or thousands
of dollars. Some report never selling a single item or receiving a
single call from a prospective customer.In 1999, the Better Business
Bureau of Central & Northern Arizona warned:
In video tapes about New Strategies and Don Lapre's life and financial
success, the company repeatedly suggests that $50,000 per month or
more is easily attainable for anyone, with little effort and no
experience required, simply by following Don's instructions for
starting a business with 900 phone numbers.
The 30-minute infomercial called Making Money offers a package of the
same name for $40 (formerly $79.95). Purchasers are called back with
another sales presentation designed to get them to buy various lines,
(psychic, sports, chat and date) for a cost in the neighborhood of
$850. This sale may be followed by yet another call offering
television advertising for the phone lines.
Though New Strategies offers a 30-day money back guarantee, the Bureau
has received complaints alleging delays in both delivery of the
product and refunds to those who returned the merchandise. Other
complainants have expressed dissatisfaction with the program, stating
that it was misrepresented during the sale and that earnings turned
out to be not as represented. Significant additional costs are
reportedly not told to prospective customers up front. . . .
The Bureau advises extreme caution when dealing with this company and
urges consumers who have not received their refunds in accordance with
the advertised money back guarantee to contact the television station
which aired the New Strategies program [2].
Following the 1999 bankruptcy filing, the assets of Lapre's businesses
were purchased and used to form Universal Business Strategies under
the stewardship of Joseph H. Deihl. The new owners continued to air
the same Lapre infomercials, continued his tradition of fleecing
customers, and quickly earned an unsatisfactory Better Business Bureau
rating [3]. In 2000, Lapre himself publicly denounced the new company
as unethical on his now-defunct www.donlapre.com. Another of Deihl's
endeavors, Karemor International, Inc. has an unsatisfactory BBB
record and ran into problems with the Arizona Attorney General. As
noted in a BBB report:
On March 28, 2002, The Attorney General of the State of Arizona and
respondent Karemor International, Inc. and Joseph A. Deihl agree to
the entry of an Assurance of Discontinuance pursuant to the Arizona
Consumer Fraud Act. The Attorney General alleges that respondents
marketed various products through a multi-level marketing plan.
Respondents enticed consumers to join the Marketing Plan by
representing it "provides long-term monthly residual income."
Respondents enrolled consumers in the marketing plan who became "Sales
Associates" after purchasing one of two Packages which included
marketing materials and a selection of Respondents' products. In order
to receive the benefit of Respondents' commission structure, the Sales
Associate was required to enroll in Respondents' AutoShip Plan which
authorized Respondents' to ship products to the Sales Associates on a
monthly basis and automatically deduct monies from their bank or
credit card accounts to pay for the products. Respondents failed to
adequately advise consumers that by enrolling in the AutoShip Plan,
they were committing themselves to accept Respondents' products for a
minimum of 6 months and were giving Respondents the authority to issue
an account draft each month to pay for the products. Respondents
continued the drafts despite being notified by Sales Associates that
they did not want the products. Additionally, Respondents refused to
accept returned products from Sales Associates who were not interested
in continuing with the AutoShip Program. Respondents' marketing
materials contained false promises and misrepresentations, including
the omission of material facts which is a violation of the Arizona
Consumer Fraud Act. Respondents are prohibited from misrepresenting
earnings, making statements relating to compensation or commissions
received by a participant without disclosing the percentage of
participants who have received such compensation and automatically
issuing account drafts unless an appropriate disclosure is made to
consumers in the same place as the authorization to allow such drafts.
Respondents shall refund consumers who have filed a complaint with the
State of Arizona, have not received commissions equal to or in excess
of the amount paid to Respondents and have not already received a
refund or chargeback. . . . [4]
Yet another of Deihl's companies, Regency Medical Research, not only
earned an unsatisfactory BBB rating but was also ordered to stop
making illegal claims its potassium iodide spray product would protect
against the development of thyroid cancer if nuclear disaster strikes
[5].
By 2000, Lapre's "Making Money" package was tapped out. Lapre had
considered marketing nutritional supplements as early as 1997, so he
approached Doug Grant, a "natural" vitamin peddler, for help in
developing one. Grant soon formulated a supposedly revolutionary
vitamin product. Never known for understatement, Lapre decided to name
the product The Greatest Vitamin in the World. His new company,
Torica, LLC, began operations in Phoenix in January 2003. A new Don
Lapre infomercial soon followed, featuring "The Greatest Vitamin" and
Lapre boasting, that "Nothing like this has ever been seen before in
the history of the world!" Unlike his previous infomercials, the
editing and backgrounds were cheap with lots of repetition.
Grant's Background
In addition to working with Lapre, Doug Grant has been associated with
at least three other companies: Optimal Health Systems, Infinity2, and
VitaQuest International.
Optimal Health Systems, which Grant founded, markets its own brand of
dietary supplements and operates a retail outlet in Mesa, Arizona.
According to the company's Web site site:
In 1989, twenty-three year old Douglas Grant was involved in a
terrible accident that landed him in a rehab center and left him
wondering if he would ever walk again. Driven to find answers, Doug
realized that many people claimed to posses the miracle formula for
health, but reliable, effective principles were often overlooked or
overshadowed by clouds of misinformation.
What began as a personal search for health has resulted in a complete
recovery and return to the pinnacle of fitness for Doug, including a
Gold Medal victory in the World Power Lifting Championships. Doug's
passion to find accurate answers for health also motivated him to
receive a degree in nutrition and five professional trainer
certifications. Most of all, the knowledge Doug discovered on his
quest has driven him to share true health with others by presenting
his message on radio, television and in print. Doug also used his
knowledge to create a health and nutrition company that has brought
health to numerous individuals throughout the world. The resulting
company, Optimal Health Systems, is the culmination of over ten years
of work with more than 5,000 health professionals, countless personal
trainers, and hundreds of thousands of individuals from every walk of
life.
Along the way, Doug has surrounded himself with experts in their own
right, with a Professional Advisory Council of doctors, and with
writers, researchers, managers, sales staff, and customer service
representatives who share his beliefs and determination. Each
individual has their own story of how applying proper principles has
led to optimal health. Together, they are committed to further the OHS
mission: To raise the standard of health and fitness by providing
superior systems of extraordinary service, motivational support, and
customized Nutrition, Exercise, and Specific Supplementation; creating
for every individual, the expectation and ability to achieve optimal
health [6].
The source of Grant's nutrition credential is not stated in the
biographical sketches I found online, but I did find one site which
stated that it came from American Holistic College of Nutrition. This
entity was a nonaccredited correspondence school that taught fringe
methods and had no recognized academic standing. (In 1997, it and a
sister school were merged to become the Clayton College of Natural
Health, which also is not accredited.)
Optimal Health's products include Complete Nutrition [7], which is
said to contain "the most absorbed, utilized form of whole food
vitamins, minerals, stabilized probiotics and plant enzymes," [8]
Opti-Cleanse [9], "the most unique and effective formula for cleansing
the bowel and removing unwanted toxins and healthy metals," Optimal
Acute, which "rejuvenates the body's natural healing process, and
Opti-Care [10], the "ultimate 'digestive repair formula.'"
Infinity2, is a multilevel company headquartered in Scottsdale,
Arizona. During the mid-1990s, company publications described him as
"a nutritionist by degree, with postgraduate wok in sports medicine,
rehabilitation, and fitness training . . . . a Certified Nutritional
Microscopist and nationally licensed phlebotomist." [11] During this
period, he was identified as the formulator of Infinity2 products,
company president, director of health services, and directory of the
company's professional advisory council. The company's leading product
was a digestive enzyme capsule promoted with a videotape in which
Grant warned that "enzyme deficiencies" were a serious problem that
should be solved by taking the product. In its early days, Infinity2's
professional division signed up professionals (mostly chiropractors)
who used live-cell analysis to persuade patients that they needed
supplements. This procedure, which is bogus, is carried out by placing
a drop of blood from the patient's fingertip on a microscope slide
under a glass cover slip to keep it from quickly drying out. The slide
is viewed at high magnification with a dark-field microscope that
forwards the image to a television monitor. Both practitioner and
patient can then see the blood cells, which appear as dark bodies
outlined in white. The Infinity2 distributor would record what
happened to a videotape that featured Grant pontificating about
"enzyme deficiencies" and why the company's products were needed [12].
Infinity2 no longer appears to promote this procedure or to have a
professional division, but the Optimal health Systems site has an
article promoting "phase contrast microscopy as an educational tool.
VitaQuest International is a multilevel company headquartered in Mesa,
Arizona. The company's Web site portrays Grant as a "prime mover" who
developed its "F.I.T.N.E.S.S in a Box," a product with five
components:
Digestion formula with Enzymes and Probiotics, said to be "the most
advanced and complete formula available to restore the body's enzyme
supply and intestinal flora."
Whole Food Vitamin Mineral Formula with Amino Acid Chelates ("provides
the safest, most effective whole food vitamins and chelated minerals
and contains the widest array of powerful antioxidants on the market
today"😉
Microhydrin®, said to be "the most powerful antioxidant available
today. . . . contains . . . hydrogen-enhanced silicate material, a
compound of silica and hydrogen atoms modified to contain a loosely
bound extra electron."
Crystal Energy®, described as a "catalytic liquid" said to "enhance
the physical properties of your drinking water," "help rid the body of
toxins and free radicals," and give water "a better opportunity to
enter . . . and hydrate the cell."
Metabolism Formula with Chromium and Garlic, said to "help support the
body to digest fat, maintain blood sugar levels, and help regulate
cholesterol."
The VitaQuest site states that "F.I.T.N.E.S.S in a Box, is endorsed by
the National Basketball Conditioning Coaches Association (NBCCA).
NBCCA was formed in 1992 and has 16 members identified on its Web
site. Grant appears to maintain the site, which he registered in May
2003 on behalf of Optimal Health Systems. The site has little other
information and sells candy bars.