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. Continue reading
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.
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. Continue reading
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 about their products.The Board says it didn’t remove Caster from his duties because it wasn’t “in the best interest of shareholders.” Mannatech’s SEC filing regarding the firing of the auditors said that there were no disagreements about accounting principles, audit scope, or financial disclosures.
The new auditors for Mannatech will be BDO Seidman.
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. Continue reading
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: Continue reading
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. Continue reading
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. Continue reading
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. Continue reading
The Wall Street Journal ran a story this morning about another product-based pyramid scheme, Mannatech. The company is a typical multi-level marketing company (MLM). They have a product (generally overpriced and of marginal quality), but the “real” business is in recruiting new distributors.
Mannatech is currently facing scrutiny for health claims made by distributors. According to the article: Continue reading