United Sciences of America, Inc. (also known as USA) was an American company that was accused of fraud and shut down in the late 1980s. USA manufactured nutritional supplements such as "Master Formula", "Calorie Control Formula", "Fiber Energy Bar", and "Formula Plus", distributing them via multi-level marketing (a.k.a. pyramid marketing). The company experienced rapid growth in the 1980s, was heavily endorsed and marketed by various celebrities, and was marketed via over 140,000 distributors. However, an exposé by NBC revealed fraudulent practices, and this was followed by multiple lawsuits from attorneys general in three different states. Several of the company's advisors resigned, and USA declared bankruptcy in 1987.
Background
The company was based in Carrollton, Texas, and chaired by Robert "Bobby" Adler (not the same person as, and not related to Robert Adler), with president Jerris Leonard, who had been a former U.S. assistant attorney general under Richard Nixon. Products were marketed with claims such as that they helped prevent cancer, AIDS, arthritis, alcoholism and heart disease.
Receiving endorsements from several celebrities, including William Shatner, Chris Evert, and Gary Carter, the company experienced rapid growth in January 1986. It had a team of 140,000 distributors, with new distributors signing on at a rate of over 10,000 per month. The company was earning US$8 million, and company executives were projecting sales over $100 million in 1986 along with the astounding prediction of US$1 billion by 1989.