USANA is breaking foreign laws by allowing their distributors to conduct business within "Mainland China" (Recruiting distributors and/or selling product). USANA admitted in an internal document that a "large sum" of product ends up in China, which is a restricted region. USANA is required to disclose this activity to their shareholders. Because this activity is a violation of foreign laws, it does not matter how significant or insignificant the amount of product that is illegally being sent to China, it has to be disclosed to shareholders.
USANA's auditor PriceWaterhouseCoopers was notified of this on November 16, 2009 and has had plenty of time to investigate the matter. The fact that USANA's recently filed 2009 10-K did not make any mention of product being sent to China leads me to believe PWC did not take the matter seriously.
This is a violation of PWC's code of ethics and is now subject to lawsuits by USANA shareholders. PWC should have required USANA to disclose the amount of product being sold in Mainland China, and if USANA refused, PWC should have resigned.
PWC's main office should investigate this issue. The SEC should too.
USANA's auditor PriceWaterhouseCoopers was notified of this on November 16, 2009 and has had plenty of time to investigate the matter. The fact that USANA's recently filed 2009 10-K did not make any mention of product being sent to China leads me to believe PWC did not take the matter seriously.
This is a violation of PWC's code of ethics and is now subject to lawsuits by USANA shareholders. PWC should have required USANA to disclose the amount of product being sold in Mainland China, and if USANA refused, PWC should have resigned.
PWC's main office should investigate this issue. The SEC should too.
