In an article today about the Usana Health Sciences (NASDAQ:USNA) buyout offer by Myron Wentz (Gull Holdings), the following inaccurate statement was made:
The Securities and Exchange Commission concluded during the first quarter USANA’s marketing model is not a pyramid scheme, but the stock has a short interest about 34 percent, meaning many investors are betting the stock will fall.
The SEC did not say that Usana is “not a pyramid scheme.” Nothing could be further from the truth, although company management would like you to believe that this is what the SEC said.
What really happened: The SEC closed its informal investigation of Usana without giving any reasons why. The SEC chose not to take the informal investigation to the next level and make it formal.
That’s the end of the story. What the SEC did was not any sort of endorsement of the company, and it doesn’t necessarily mean that the company is in the clear. It just means that the SEC decided not to continue investigating.
This type of irresponsible reporting really angers me. It is one of the reasons why pyramid schemes like Usana, Herbalife, Mary Kay, Pre-Paid Legal, and Primerica Financial Services continue to recruit new marks. They see statements like this by the Associated Press, and assume that they’re accurate.
I am happy to receive documents on behalf...
15 May 08 at 3:20 pm
Thanks for the update on USANA. I’m sure done with the company. What do you know about MonaVie? Is it the same MLM yuk?
15 May 08 at 3:21 pm
You may not believe this is possible, but I think MonaVie is even worse!
15 May 08 at 3:41 pm
MonaVie was founded by Dallin Larsen who used to be USANA’s Vice President of Sales and is related to USANA’s top paid distributor Collette Larsen. That’s my two cents…
20 May 08 at 4:14 pm
I would be interested in hearing more of why you believe “MonaVie is even worse”. I have several friends pushing the drink. I did like some of the products of USANA but after watching the misinformation and the “opps did I say I am a CPA or Doctor” stuff, I felt it was best to cut my losses. If you have any creditable information that I may be able to share with others regarding the path MonaVie is taking people it would be greatly appreciated.
Also, terminatedramp, thanks for the heads up regarding Dallin Larsen. Funny thing I had a guy in my office pushing MonaVie and I told him after my experience with USANA I was taking a pass.