BODY SOLUTIONS

7-25-2002 Archived In Reverse Order

Troubled Body Solutions
'Has No Plans For Bankruptcy'
Attorney JD Pauerstein Denies Rumors SA Diet Company 'Going Belly Up'; Owner Harry Siskind's Last Bankruptcy In 1998 With 'Diet Cookie' Company;
Attorney Asks Florida Court To Stay Consumer Litigation Because Of 'Too Many Lawsuits At Once'
RG Griffing, SAL Commentary Copyright July 25, 2002 By San Antonio Lightning

In an exclusive interview with the Lightning, JD Pauerstein, attorney for Mark Nutritionals/Body Solutions and owner Harry Siskind, insisted that Bankruptcy for the troubled company is not under consideration.

"We have no plans to seek bankruptcy protection," Pauerstein told the Lightning in a short interview Thursday morning. Pauerstein said he could not comment further, due to client-attorney privlege.

Pauerstein answered the question in response to rampant speculation, fueled by widespread consumer litigation against the firm, and a recent inability or lack of desire to pay an outstanding advertising bill to Cox radio for more than $450,000. (See stories below)

Siskind's previous enterprise was a mail-order "diet cookie'' in San Antonio called Texas D'Lites. That business went belly-up in 1998.

Undaunted, Siskind started Body Shapers, which morphed into Body Solutions. It was a huge success.

Siskind has been a high profile personality SA, well known Spurs fan and celebrated friend of the North Side Chamber Of Commerce. He paisted the Body Solution's logo on virtually everything in sight, from a race car, the Spurs basketball court, to thousands of billboards across the country.

His strategy was simple. Pay TV and Radio personalities to give testimonials about his product. He paid them to say how much weight they had lost. It was very effective.

All that has apparently changed. The billboards are gone locally, the constant flood of Radio spots have dried up. The Better Business Bureau has called Body Solution's record "unsatisfactory." (See stories below)

The company reportedly told a Florida court it was being sued in so many places at once that it required a stay to continue to be "productive."

Time will tell what the future holds for Body Solutions.

Lean times, or fat city?

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One other observation we would make, and it deals with SA media, not Body Solutions.

With the exception of KSAT TV and San Antonio Lightning, which featured the story early in the week, few other local news organizations touched this story.

Express-News, though aware of the facts since Monday, chose to sit on it until Thursday's edition, when apparently it either had to ignore the story, or run it.

Does money mean a free pass from the free press?

Could it be that there is some embarrassment on the part of those media personalities that shilled for the company?

Is it possible that there is a fear of offending a local big spender by printing a true story?

We hope not.

That is, after all, our job.

That's what we are supposed to do.

-Developing-

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-Previous Stories-

7-24-2002

What Ever Happened To Body Solutions?
Radio Ads Disappear From SA Stations; Cox Broadcasting 'Stiffed' For $450,000; BBB Reissues 'Unsatisfactory Rating' Due To Unanswered Complaints; Florida Attorney Seeks Litigants Against Company's Diet Product
SAL Staff

Is Body Solutions In Financial Trouble?

No one at the Company will give comment on that, but the question arose when the multi-million dollar diet giant was accused of not paying their advertising bill to Cox Broadcast stations in SA.

According to a lawsuit filed last week by Cox Radio Inc., Body Solutions has failed to pay that company to the tune of more than $450,000. Body Solutions has spent heavily in the past, buying advertisements and endorsements on local airwaves.

Cox properties include local radio stations KCJZ, KONO, KISS, KSMG, KCYY, and KKYX.

Neither Cox, nor Mark Nutritionals, parent company to Body Solutions offered comment to the Lightning.

However, JD Pauerstein, an attorney who represents gave a written statement to KSAT TV. It reads, in part that "Body Solutions regrets that the parties were not able to come to an agreement before the suit was filed."

Pauerstein also told KSAT in the written statement that he expects "disagreements over the amount of money involved will be resolved without further legal proceedings."

It isn't the first time Body Solutions has drawn legal action (See stories below), but it is the first time they have been sued over nonpayment.

Meanwhile, the Better Business Bureau has renewed an "unsatisfactory rating' for body solutions, noting "unanswered complaints" from consumers. An earlier such rating was lifted following a Lightning story which disclosed that fact, when the Company took care of previous complaints. Apparently, new complaints have been filed with the BBB.

On top of all this, Florida law firm James Hoyer is seeking litigants to determine whether Mark Nutritionals and Body Solutions "committed fraud" by failing to tell consumers the full truth that "they'd need to buy additional products, in effect giving consumers a bait and switch."

-Developing-

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-Previous Story-

Last Updated 4-7-2002

San Antonio Based
Body Solutions Draws Third Lawsuit
Latest Suit Filed In Florida; Class Action Alleges Fraud; BBB Calls Company's Record 'Unsatisfactory'
SAL Staff

"People really do lose weight with Body Solutions." That's the company's trademarked promise.

You can hardly turn on a radio or tv coast-to-coast without hearing or seeing one of their commercials. Huge numbers of billboards also tout the diet program.

Body Solutions. "New clothes sold separately."

But the companies maker, San Antonio Based Mark Nutritionals, has run into more legal problems, and lean times could be ahead.

Last summer a class action lawsuit was filed by Detroit man Michael Emch. He charges that he lost no weight after months of using the product. The lawsuit alleges that Body Solutions' claims violate the Michigan Consumer Protection Act and the Michigan Pricing and Advertising of Consumer Items Act. Body Solutions officials were ordered to turn over the names of all Michigan customers.

Another lawsuit against Body Solutions was filed by Wayne, Michigan resident Bob Miller seeking status as a national class action. Company lawyers call the claims "frivolous."

Now comes Janet Makinen, A 51-year-old Dade City, Florida resident who says she was defrauded by the advertising and the company in Texas. She used the product for 3 months and gained 6 pounds. No response has come from the company, so far.

Body Solutions has been a high profile presence in San Antonio. Mark Nutritionals president and CEO Harry Siskind is a big Spurs booster. He also was the largest contributor to the North Side Chamber Of Commerce's construction initiative. He donated $150,000 to the project. Overall he has a reputation for being a good corporate citizen.

Yet, questions arise.

The Better Business Bureau rates Mark Nutritionals as having an unsatisfactory customer experience record, because of a "pattern of unanswered complaints." (Editor's Note: Since this report Mark Nutiritionals has resolved all complaints.)

The Federal Trade Commission has also taken an interest in the situation. Spokeswoman Brenda Mack told the Saint Petersburg Times that no action has been taken against Body Solutions, but she said the FTC is aware of it.

She also suggested that concerned customers can register complaints at the Internet site, www.FTC.gov, or by calling toll-free 1-877-382-4357.

Mark Nutritionals, has 300 plus San Antonio employees, and uses a virtual army of radio disc jockeys and talk show hosts nationwide to market its product. On-air personalities at more than 1,000 radio stations across the US give testimonials to the success of the program.

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