Friday, March 19, 2010

USANA's auditor PWC ignores USANA's fraudulent China revenues

 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.

2 comments:

  1. "PWC should have required..." Man who are you to direct PWC to what actions to take? are you the CEO? and by the way who are you to question their actions? duh....

    ReplyDelete
  2. Who are You?

    Price Waterhouse used to be a CPA firm. I don't know what they consider themselves to be. Maybe a rubber stamp? MLM's are not legal in Chine. How did Usana sign up 120,000 associates in China.without breaking the law? They did it by using the same address outside Chine for thousands of associates. PWC could have detected this by a simple search of the Usana records by address.

    The P in CPA stands for public. CPA's represent the the stockholders and the public when they issue a report on a company's financials. Big CPA firms all have AA syndrome. They rubber stamp their name on the financials without doing the audit.
    Mr Lay of Enron, when confronted , said Who are you to question me? "

    Which CPA firm does your up-line use?

    ReplyDelete

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