Does USANA Have 30,000 Distributors Illegally Operating in China?

I just read a press release that claims that 30,000 USANA distributors are operating illegally in China.

The report comes from "Fraud Investigator" turned and convicted felon, Barry Minkow so I would usually be very skeptical, but there is an undercover video that shows USANA’s Distributor Services Director, Lesley Law telling two prospects about the numbers in China. Law is shown wearing a USANA polo shirt.

Other "reports" from Minkow have been shaky at best.

However, the Chinese market has only recently opened to a handful of companies and this type of alleged illegal activity could be a major blow to the future of Network Marketing in China.

Here is the a link to the video.  Law tells of the 30,000 Chinese Distributors about 32 minutes into the 39 minute video.