Mannatech Receives Wells Notice From SEC

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.

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SEC fines have gone down

The fines levied by the Securities and Exchange commission have fallen to their lowest level since 2002. Bloomberg reports that “fewer billion-dollar accounting-fraud cases” and “new policies for fining companies” are to blame. For the year ended September 30, the SEC issued $1.6 billion in fines, compared to $3 billion in each of the two … Read more SEC fines have gone down

SEC creates groups to focus on fraud

According to the Financial Times, the Securities and Exchange Commission has been working to create four groups that will focus on fraud. The groups include one for hedge funds and insider trading, one for stock options backdating, and one for municipal bond issuance. The most recent group was set up in January, and focuses on … Read more SEC creates groups to focus on fraud