mannatech – Fraud Files Forensic Accounting Blog

Multi-Level Marketing Income Disclosures

10 January 201731 December 2012 by Tracy Coenen

Some multi-level marketing (MLM) companies release income disclosures or earnings disclosures. These documents theoretically provide insight into how much distributors earn in commissions or overrides.

However, the disclosures are generally worthless. What is more important than the information in these documents? The information that is not disclosed in the documents.

Multilevel marketing companies purposely omit important information that would allow potential distributors or investors to have real insight into these plans.

MLM Scheme, Mannatech, Pays Millions to Victims for Making False Claims of Cures and Health Benefits

13 July 201221 April 2009 by Tracy Coenen

News from Pyramid Scheme Alert:

Mannatech, a long time MLM company, member of the Direct Selling Association and publicly traded on the New York Stock Exchange, has agreed to pay millions of dollars to consumers who were deceived by its false health claims about its products. The state of Texas, where the scheme is based, charged that Mannatech falsely claimed that its food supplements cured Down syndrome, cystic fibrosis, cancer and other serious diseases.

Mannatech Results: Brain Damage and More

2 June 201216 December 2008 by Tracy Coenen

A child suffered for two weeks with a heart condition, while her father gave her large doses of Mannatech products in an attempt to “cure” her. The result? Her mouth was damaged, she’s confined to a wheelchair, and has cognitive (brain damage) problems.

The Australian reports:

Mannatech Receives Wells Notice From SEC

13 July 201210 September 2008 by Tracy Coenen

In July of last year, the Attorney General of Texas filed a lawsuit against multi-level marketing company Mannatech (NASDAQ:MTEX), alleging the company used illegal sales and marketing practices.

Then in August, the company’s CEO, Sam Caster, stepped down. Although he resigned as CEO, he stayed on as chairman of the board.

In October, Grant Thornton, the company’s auditing firm, was fired. Mannatech issued a press release which stated that Grant Thornton was dismissed because they wanted the company to relieve Sam Caster of all duties, and the board said no. Mannatech said there were no disagreements about accounting principles or audit matters.

Mannatech Fires Auditors Grant Thornton

11 July 201218 October 2007 by Tracy Coenen

Mannatech Inc. fired its auditors, Grant Thornton, after refusing to comply with GT’s demand that Sam Caster be removed from all duties. Caster is the founder of Mannatech and the current chairman of the board. He resigned as CEO two months ago after Texas started legal proceedings against the company for making illegal health claims … Read more Mannatech Fires Auditors Grant Thornton

Mannatech CEO Quits to Devote More Time to Mannatech

11 July 201223 August 2007 by Tracy Coenen

Okay, I admit it. That headline comes straight from Zac Bissonette at Bloggingstocks. I couldn’t help it though. It’s just so…. so…. right.

In July, the Texas Attorney General filed suit against Mannatech to stop the company from using illegal sales and marketing practices. The suit says that company associates have claimed the products cured, mitigated, treated, and prevented diseases such as cancer and autism. Such claims violate of state and federal laws.

Texas Attorney General Finally Goes After Mannatech

13 July 20126 July 2007 by Tracy Coenen

According to an article in the Wall Street Journal, the Texas Attorney General is finally going after Mannatech Inc. Named in the suit are Mannatech Inc., Manna Relief Ministries, The Fisher Institute Samuel L Caster (Chairman and CEO of Mannatech), and Reginald McDaniel (Medical Director).

The allegations include:

Legal Inaction Against Mannatech?

13 July 201225 June 2007 by Tracy Coenen

The Texas Attorney General doesn’t want to talk about why his office hasn’t taken legal action against multi-level marketing company Mannatech. His office was informed on October 5 by the Department of State Health Services that Mannatech is a threat to public health and safety.

Mannatech was recently featured on ABC’s news program 20/20. The program highlighted the bogus health claims made by representatives pushing Mannatech’s “Ambrotose” product, which is nothing more than a sugar pill.

Defending Mannatech’s Sugar Pills

13 July 20128 June 2007 by Tracy Coenen

Last night, a poor, lost soul posted a comment on my post about the 20/20 expose on multi-level marketing company Mannatech. She’s posted her own lengthy analysis of the company at http://glycofamily.blogspot.com/2007/06/long-entry-about-mannatech-and-response.html. Sadly, she buys into all the hype and false logic that MLMs are so fond of repeating.

Mannatech Bogus Health Claims?

13 July 20121 June 2007 by Tracy Coenen

20/20 did a hidden camera investigation for 3 months, going to Mannatech sales pitches around the country. The meetings start with disclaimers that the products don’t cure anything. Yet the meetings are full of testimonials from people who claim they were cured by Mannatech products. Claims are also made that the product is a bigger breakthrough than even penicillin.

Mannatech products are only sold through a multi-level marketing (MLM) plan.