Myron Wentz sells $4,735,010 worth of stock in the last couple days (Sept 12 and 14). So I will update the figures below with the latest data. Someone should ask USANA to disclose what days the company repurchases the stock. Today it appears Myron Wentz sold his stock at the last 15 minutes of trading. (Update Sept 14, 2012)
Over the past couple weeks USANA's CEO Dave Wentz sold $2,960,088 of his stock.
Since the beginning of 2012, USANA executives have sold a total of $14,573,605 in stock. They have purchased $0.
| Wentz Dave | $2,960,088.00 |
| Wentz Myron W | $8,616,930.00 |
| Macuga Daniel A. | $515,973.30 |
| Woo Deborah | $500,436.24 |
| McClain Jerry G | $103,737.70 |
| Guest Kevin | $970,099.00 |
| Iiekking G Doug | $348,718.20 |
| Fuller Gilbert A | $164,095.00 |
| Bramble James | $196,329.00 |
| Truett Roy | $197,199.00 |
And I'd like to remind the readers how Dave Wentz responded during a past conference call:
John San Marco at Janney Montgomery Scott LLC:
"Do you know what the percentage of your Hong Kong associates that are actually Chinese nationals?"
Dave Wentz replies back with:
"We definitely have a number of people who are building in Hong Kong. We do not have a percentage or have a number that we could point to with any accuracy."
Also this Internal USANA Memo that admits to sending product to mainland China:
"IV. What is the biggest market that buys our products that we are not eligible to operate in?
i. Once again I couldn’t give you an exact answer on this. Since I work with our Asian markets, I know that a large sum of product ends up in China, but I’m sure product somehow gets shipped to other unauthorized markets as well…"
And also what USANA's ex-president Fred Cooper stated:
"we have a large group of Asian Associates who are involved with USANA only because of the products and are buying in Hong Kong for consumption only."
So USANA executives are fully aware of the Chinese Nationals that are recruited into USANA's MLM compensation plan through Hong Kong China. And has I have written about for years, the ratio of USANA distributors in Hong Kong to citizens in Hong Kong is about 1 in 100. That's a major red flag. Now USANA admits to the recruiting of mainland China citizens. The problem here is, it is AGAINST CHINA'S LAW for any of their citizens to participate in MLM. Why is that? MLM is against the law in China. So USANA is knowingly circumventing foreign laws and the SEC should investigate this matter.
As I have stated before, I believe that if you remove the net revenue generated by these illegal distributors, USANA would no be growing, but actually declining!. Thus, the stock price would be far lower. I believe the stock price is grossly inflated because of the illegal recruiting of Chinese Nationals and believe the executives selling their shares at these inflated prices could land them in hot waters.
It would be very interesting to find out how many USANA distributors are illegal recruits from foreign territories that restrict MLM from operating in their own borders.
Do you believe all mlm companies are a scam?
ReplyDeleteI also found this post pretty interesting. Why are the Wentz's selling so much of their stock?
There are a lot of MultiLevel Marketing companies and most I do not know of. However, I do believe all MLM companies are pyramid schemes because they all focus primarily on recruiting new distributors who are forced to purchase "overpriced" product that ends up becoming almost impossible to retail to the general public. The compensation plans in MLMs do not allow for 100% of distributors to Profit. That's because commissions are typically primarily funded by the distributor's own mandatory purchases instead of from retailing product. Therefore, only a very small percentage of distributors can ever profit. Therefore, the compensation plan is designed to fail the majority of distributors.
DeletePlain and simple, USANA claims that in 2011, the annual average income for the distributors in the North American region (Mexico, Canada and the United States) is $616.72... However, in order to collect that commission, each and every participating distributor needed to personally purchase over $1420 worth of USANA product. Therefore the average distributor LOST money. And just to point something out, only 1 in 3 distributors even collected a commission check. So 66% of distributors (Bottom of the pyramid scheme) made $0. You gotta love it when USANA claims the average distributor made $616.72 because the average distributor actually made $0! BTW, this is "gross" income so it doesn't take in account for all the business expenses.
The Wentz's sell a lot of stock all the time because they can. What I would like to know is what days USANA repurchases the stock. It would be very interesting to see if USANA buys back their stock on the same days the executives sell their stock.
To Interesting
DeleteWhen you bail out you have to say, "Geronimooooo..!!"
The insiders are exercising their options and systematically selling their stock while Usana is buying it back. Something is wrong!
The real owner and controlling interest is selling and the Company is buying. I wonder if the company is buying on the same day the insiders are selling? Normally you sell when the stock is no longer a good investment and buy if it is a good investment. This looks like it would make it a fancy way of transferring company funds to the insiders at the expense of the other stockholders. Unfortunately, this may not be against the law. You should check with the SEC.
This is not true... This is a work of big companies use to sell cheap products like centrum but is all crap...waste products if multivitamins..usana is not required to recriut a member...we just sharing it..thats in..not like in herbal life and crapty product like amway and kirkland
DeleteThis is not true... This is a work of big companies use to sell cheap products like centrum but is all crap...waste products if multivitamins..usana is not required to recriut a member...we just sharing it..thats in..not like in herbal life and crapty product like amway and kirkland
DeleteYou cannot effectively analyze any company or opportunity by focusing on the bottom producers. In my promotional products company, if you were to look at the bottom tier sales reps one would conclude that my company offers a sub-par opportunity to make a living. But if you focus on the top sales reps, those who make the most of the opportunity, you would conclude my company is a tremendous opportunity. This is true in any sales organization.
ReplyDeleteWell, 99% of the people in this company make no money. I dont know any other reputable organizations that function like that. Its like averaging all the vice presidents income as the standard while not taking into account what everyone else makes. In Usana, most people lose money. How can you justify this?
DeleteThank you for this blog watchdog. I have gone through much of this information and believe Usana to be a unethical immoral company but I was wondering why the FTC has not brought charges against them for being a pyramid scheme? I read that a judge did not find proof for functioning as a pyramid. Do you see the bottom falling out from this company anytime soon or charges being brought against them for their illegal practices?
ReplyDeleteIn response to "why the FTC has not brought charges against them for being a pyramid scheme?"
DeleteThe FTC only investigates a company have enough people file a complaint. Most people don't bother with the complaint procedure and most feel embarrassed and ashamed that they were swindled in the first place.
In response to " I read that a judge did not find proof for functioning as a pyramid."
From USANA's SEC Filings
QUOTE
Chirco vs. USANA et. al
On April 17, 2009, USANA, and certain of its present and former officers and directors, were named as defendants in this purported class action lawsuit in State District Court in Clark County, Nevada. The complaint alleged a number of purported material misrepresentations to the market in violation of state pyramid law, deceptive business practices, and business fraud law. On September 29, 2010, the Nevada State District Court dismissed this lawsuit with prejudice. The sole plaintiff in the case agreed to petition the court to dismiss the case after the plaintiff reviewed the evidence and determined that the lawsuit should not continue.
ENDQUOTE
In response to "Do you see the bottom falling out from this company anytime soon or charges being brought against them for their illegal practices?"
The bottom is falling out. The United States market is deteriorating. The only real growth is USANA's mainland China MLM market, which is an illegal market. Without the Chinese Nationals signing up in USANA's MLM Compensation Plan through Hong Kong (illegally), USANA's net revenue would be much lower. Their stock price would be much lower, and the company executives would not be able to sell their stock at the high prices that they are selling today.
I believe charges will be filed, but as long as federal regulators are too busy looking up porn (like the SEC) I don't see any investigations any time soon. What is needed is massive news coverage. Currently, there is ZERO nation news coverage on any Multilevel Marketing company. It's the least discussed subject in the media and in schools. Education is what's needed.
I think I know why the judge in the court case "Chirco vs. USANA et. al" dismissed the case.
DeleteWhen a new distributor joins, they sign a business agreement. Part of that business agreement are USANA's Policies and Procedures. Within the policies and procedures is a little section with the following language:
QUOTE
8.2.2 Jurisdiction, Venue, and Choice of Law
Jurisdiction and venue of any matter not subject to arbitration shall reside in Salt Lake County, State of Utah or in the United States District Court, in and for the District of Utah unless the laws of the state or province in which the Associate resides expressly require otherwise. By signing the Associate Application Agreement, all Associates consent to jurisdiction within these two forums. The law of the State of Utah shall govern disputes involving the Associate Agreement.
END QUOTE
Get it? By signing the Associate Application Agreement, all Associates consent to jurisdiction within these two forums. The case was brought forth in Nevada. The judge in Nevada dismissed the case because they did not have jurisdiction in the case and the associate had already agreed to that when he joined USANA.
Case in point, the $7,000,000 award to several distributors in 2008 was awarded by an arbitrator in the state of Utah.
I think someone also brought a case against USANA in California with the same outcome.
DeleteSo only distributors in Utah are able to bring charges against the company? Maybe ill move to Utah and sue them for 10 million and give it to the poor.
Curious, what is your personal vendetta against this company? Does it eat you alive daily to see this company continue to gain remarkable successful, changing the lives of hundreds of thousands around the world? This must just ruin your day, everyday. Have a good day.
ReplyDeleteFirst of all, you are brainwashed into thinking this company cares about you. 99% of participants make no money.
DeleteThe product is enormously overpriced with no clinical evidence that it is anymore effective that a generic product 1/10 the price. What you call "changing lives", I call a placebo effect for brainwashed weak minded individuals.
Unfortunately I may have to disappoint you, there are clinical studies and and health wise it changed my life wonderfully.
DeleteWell you cannot blame Stella Price, MLM mind trick works only on weak minded person like her...
ReplyDeleteshe fails to see that the company she is working for have no work ethics to be able to sell their product and "opportunity" they resort to defaming competitor products, no matter what.. this kind thing is unethical and this thing alone makes me believe that they are just another Pyramiding thing
How can you say this is pyramid scam ? Let's discuss it point by point. 1) Product - Dr. Wentz will not be given an an Einstein award if this is bogus. Formula alone for the product is a breakthrough 2) Price- without analyzing it thoroughly you see that it looks like pricey but an example is their Essentials
ReplyDeleteWhat the hell is an einstein award I have looked everyone trying to find out what it is and for what reason it is given and simply can't find any information. Also people get awards all the time when they don't deserve them just look at Obama's Nobel peace prize.
Delete"How can you say this is pyramid scam?"
DeleteTo put it simply, it's a scam because the distributors are the main people buying the products due to a requirement.
You have a company that has more salespeople than customers. How can you not see a problem with that?
Don't you all realize by now that until the monthly requirement is removed, anything good you say about Usana is pointless? I can win every single argument regardless of what facts, figures, and stories you come up with simply be going back to this very point. You can say your vitamins are the best, fairly priced, and have plenty of demand but as long as reps are still being forced to buy the products, these are all lies.
Without the requirement, almost NO ONE would have anything bad to say about Usana. And guess what? Usana knows this yet they still choose to keep the requirement. Why? Because their products are overpriced and the only way they can sell it is by forcing their distributors to buy it so without this requirement, they'd go out of business.
I know none of you reps have a good answer against this argument so I'd understand if this comment never receives a decent reply.. just like all of my other comments where I bring this point up.
He didn't win the real Einstein Award. He won an award from sponsored by and given by Global Capital Associates. They gave this award to many people each year. The real Einstein Award is given to only one person each year by a different organization. see http://en.wikipedia.org/wiki/Albert_Einstein_World_Award_of_Science
DeleteThe one Wentz got maybe just like the awards given by the Comparative guide's producers, bought and paid for by Usana. I respect Albert Einstein and support all science. It is my opinion that Usana is using pseudo science and half truths to promote a pyramid scheme.
If Mr. Wentz paid money to Global Capital or to its associates to get an award then it was just a marketing ploy to drum up publicity. You will have to ask Global Capital Associates.
Do you think that Mr. Wentz is in the league with Einstein?
The Albert Einstein Award for Outstanding Achievement in the Life Sciences seems to be a bogus award created by Global Capital Associates which ceased to exist after Wentz was given the award. It would be as if I created my own Albert Einstein award and gave it to someone.
DeleteAs pointed out, this award should not be confused with any of the prestigious Einstein Awards given out to physicist.
Anyone know if Myron Wentz ever donated to the "Jerusalem Fund of Aish HaTorah"?
Are you sure? Your word "seems" is just your imaginary thought. lol
DeleteIt's 112 tablets good for almost 4 months. Divide it by no. Of days , then you compare the potency of the product compared to others. 3) Autoship it is discussed with the person intending to join Usana and still they join . This is not a Hidden clause or anything that they know nothing about. 4) you know how MLM works? More effort you put more success. Getting people to buy is hard when you yourself is not a believer of the product. Yes it's good that you Iquestion the structure
ReplyDeleteBut study it first before you comment on anything ( to all detractors without basis)
ReplyDelete"More effort you put more success" = successful brain wash by your upline. If this was true, the more effort you put in the more successful you would be then there would be a lot more people actually making real money with Usana and in MLM. Unfortunately there is no direct correlation between success and effort in Usana. So many people work their tail off busting their hump, spending a lot money to build their business to no avail.
ReplyDeleteThe more appropriate correlation resides in Usana's compensation model. It is designed to fail 95% of the distributors because it is this 95% of distributors that pay all the money to top 5% of the distributors income. These top diamond directors didn't get there by selling the product. They got there by massively recruiting hundreds if not thousands of distributors who are forced to spend between $600 - $1,200 to start and then at least $120 a month to remain commission eligible. All these points/money go to their upline.
If Usana was so great and lucrative, then the levels of attrition would be significantly lower and more people would actually want to do the business. So you begin a new Usana business, the new associate has to sell well over $1,000 worht of product and balance out their right and left legs perfectly with a minimum of 500 points on both sides in order to get $100 commission check. Then keep doing this over and over and over every week to get that same $100.
If Usana changed their compensation to actually give associates 10 - 20 % commissions on all sales that would be so much better for the distributors working hard to sell an over priced product. Instead they make you wait and wait until you have enough points and then you receive a check. This could take weeks and sometimes months to get your first check.
The whole comp model is flawed and built to benefit Usana at your expense. Irregardless of your effort, you will have to try to scrape blood from a stone to make any money.
wow 99% distributor fail ? how it is to consider fail ?? i happy that now im eating free usana product , sorry for the bad english
ReplyDeleteA distributor is considered to fail amongst the 99% when he or she does not make a profit.
DeleteIf they only wanted the product, they would have joined as a preferred customer or have gotten the products from another distributor.
Once they join as a distributor, their primary goal is to run a business and make a profit. Failing to do so puts them in the 99% category.
Please tell us how you're getting "free" Usana products. Is it because you make at least $100/month which pays for the products you use? If so, you have a warped meaning of the word "free".
DeleteLogic,
DeleteI've heard this statement many times in the past. They think they get their product for free because it is a mandatory business requirement anyway. They believe it is fair for USANA to require an ongoing participation fee of say $110 or so every 28 days, or thirteen times a year.
So these associates think they are getting free product in return since they have to pay the fee anyway. Sadly, these people cannot legally deduct this on their taxes as a business expense because they personally consumed the product. Even more sad that most associates don't even know that.
Is Nu SKin A scam too?
ReplyDeleteAll MLM's have the same essential problem. If they are set up in the same way where you have to recruit to earn money and then their recruits have to do the same then they have the same business strategy that fails 99% of the time.
DeleteSupplement guide = the only one thing that supports their product with the very good reputation of being bias having people that also works with usana medical board(inside the book itself someone admitted to be a part of usana MB)
ReplyDeleteDistributors/Associates = uses/disclose untruthful infos which they claim they already researched but not really
Myron Went = bogus/fake einstein award given by superduper very little known Group which has a Closed/not working/outdated Website
Usana Executives = majority of them has fake if not revoked credentials
CHINA = they operate in china even though MLM is not legal in China
i think this is not enough reasons for me to leave USANA or to think twice about joining them
-brained-washed-close-minded-USANA-ASSOCIATE
let's be honest. legally, they can get away with it. but it is simply not ethical to make too much money and scam people that are too sick. where is the dignity?
ReplyDeletemaybe the seller is also too stupid to realize that he/she is selling an extremely overpriced product.
Right Jose. It's a question of ethics. Usana's business model is unethical.
Deletethe first time they present me this products they tell me a lot of my future my dreams ... they tell a lot of good things about their products,, money money money blah blah ...but they will not tell you that u need to recruit 4 people in two months to get a commission...they sell products overpriced...they will not tell you the real price they use a book to manipulate the mind of people to entertain them...
ReplyDeleteif MLM is good why many of the people has a bad impression about this company...haha
they will say if you do not do this business your future is in danger...
i don't believe in any MLM company their principle is not good...DONT USE PEOPLE TO MAKE MONEY FOR YOU...USANA ruin a lot of people in all the world
You didn't understand the business and you definitely didn't understand the system... Read if you have time.. educate yourself, it'll definitely help go thru the hardships of this life... again, EDUCATE.
DeleteHey people, we can't win this kind of argument if the people you are talking to is a negative thinker... Luckily, that's what I've learned with this kind of industry (Network Marketing) we are looking for people that have a positive outlook in life...
ReplyDeleteIf they say 99% didn't earn anything with MLM, most probably its because this 99% didn't know what to do or don't know the art of this industry...
In life, if we want to pursue our dreams and want to be successful in anything like for example, you want to be a successful Doctor or a lawyer or maybe a Politician etc etc. You will need to study hard for you to achieve it right? it is always been like that, likewise if you want to be successful with this kind of industry (MLM). You also NEED TO LEARN how it works, what is good about this industry... IT IS EASIER TO LEARN this (MLM) than any other Career! It is truly the ULTIMATE CAREER for a normal people!
Up to now, MLM is continuing to grow and changing the lives of hundreds of thousands around the world, I've seen so many successful people already, Like myself, I didn't graduate in any collage at all, I just came from a poor family.. But this Industry changed my life, I have cars, Have my own house and a condo unit and we travel a lot with my family to the places that we like. When I was a child, I've never thought that I will achieve all of this. But my dreams help me to find out how to make things happen...
The Questions are:
So how did we do it?
Simple, We understand what we are doing!
Why? Because we just study the systems in place and the beauty of network Marketing...
Some people here say and think 99% of participants make no money. Why is that?
Simple, they don't know what they are doing, they didn't study this industry and most probably they didn't follow the SYSTEM in place...
So much for this argument already, I know most of Anti-MLM here are all intelligent people. Genius as they say... I admit it, I'm no genius like you, but I'm just using my COMMON SENSE!
I will only believe you if 100% of participants make no money! But no, Trust me it will not happen :)
The question here is... Are you willing to share, as you call it, "what you understand" to the remaining 99% that you refer to as those who do not know what they are doing? I bet you won't even do that. It's pretty much COMMON SENSE why. :)
DeleteOh yes, it's the Watchdog's point that 99% of people do not make money (or even lose more money) because it's the 1% who suck money out of them thru autoship/MSV. Try proving us, what you call negative thinkers, wrong here. You haven't been reading even just one article here. Oh yes, you won't read and understand because you were taught to shoo away any negativities, right? I bet you would even ignore this. :)
If 100% is losing money, then the associates are not doing any business anymore, but they're merely buying the products and spreading it to people as if they're merely regular customers. COMMON SENSE, right? :)
The business model is unethical Anon.
Delete- Why sell overpriced product in the first place?
- Why recruit more sales people in your downline and force them to buy a minimum purchase requirement in order to earn commission?
what a mess... If you would have put as much time into building your business (mr. disgruntled distributor) as you put into writing this blog you might have been successful. I've been with the company 12 years with no issues. I'm very healthy because the product works. I'm sure this post will be deleted... Ronny D.
ReplyDeleteRonny, I hope you realise that vitamin supplements only work if your intake from food is inadequate. I guarantee, you spent a lot of money on nothing.
DeleteAlso be warned. Research now shows that vitamin supplements increase the chance of cancer known as the "antioxidant paradox". Although free radicals can damage DNA and disrupt cell membranes, they also kill bacteria and new cancer cells.
Google it.
Mess
ReplyDeleteUsana is selling a business opportunity, which is a pyramid scheme.
The pills are overpriced and overdosed.
I can't understand. Why wasn't your post deleted?
Educate yourself.
DeleteWant to achieve success in MLM business?- well just learn to be a perfect liar and deceiver!!!
ReplyDeleteUSANA exist 20 years ago and still growing. As much as I would like to respect you (the blogger), I would say your bases was inadequate and redicule. Usana uses this so called direct selling strategy. Direct selling is not pyramiding. Many people tend to shy away from this wonderful industry because of the misconception of what the business is all about. However, just because the business structure is shaped like a pyramid, it does not necessarily mean that direct selling is a pyramiding scheme. A pyramid scheme is often characterized as an illegal act of obtaining profit. If the shape of the orgnization is determining factor of whether it is illegal or not, then most of the companies and organizations that are operating now can be classified as a pyramid. The government and corporate organizations are also shaped like a pyramid, from the president to the vice president, senators and congressmen of our land. Shapes and structures are definitely not the determining factor if a company is illegal or not. From what I know, pyramids are only found in Egypt.
ReplyDeleteUSANA does not use a "direct selling" strategy. They use a "multi-level marketing" strategy that consists of overpriced product that is unsellable at a retail price to the general public and the recruiting of new sales reps by deceiving and misleading them into a pyramid scheme where they are forced to purchase product in order to participate.
ReplyDeleteI never once made the assertion that "direct selling" is a pyramid scheme. Only MLM.
how about franchising? it looks like MLM, they look for investors and ask renewal fee after 5 years or sometimes 2 years!
ReplyDeleteAlso employment is a MLM, the boos invest to a college institution then looks for 2 VP one for facility the other is for Academics, then looks for qualified department head, then hire teachers who will do the work, the leveraging. Then the boss sits around waits for money and post new rules. In my research both books and internet and if you apply critical thinking approach you will carefully notice that all sales and business investment and base on MLM or Pyramid System. Think about it, BOSS, 2 VP, @ Department Head at EACH VP, then TEACHERS and STAFF. customers? Parents. Also example only, COKE search investors in CHINA, then they look for Regionals, down to Districts, to Divisions, then down to stores/malls/small entrepreneurs, and all of them let go money some millions some hundred thousands. but the construction of their expansion follows the pattern of Pyramid, then only difference is they give out millions while meaning they are MLM rich investors while like that USANA or other small MLM are small time investors.
Try to draw a pattern from owner all the way down to the customers! then compute the money they spend, its millions, while at small time MLM only hundred dollars!
Think before you act, observe carefully, does your mind ever come to think about that this USANA Watch Dog is from other company who are deadly serious to destroy USANA because they are loosing? Think critically. This site maybe a loose DOG from other company and start to post blogs to destroy other MLM. THINK!!!
Perhaps you might want to take an English class before you post.
DeleteWhat da fk did you just talked about.
Perhaps you should retake those English classes.:)
Deletehahahaha! got you!! if you are real then allow my post! I don't like scams but I mostly hate people destroy other people.
ReplyDeletehahahaha! got you!! if you know how to type well in English, then you can start criticizing people. I don't like scams, but I mostly hate people criticizing other people when they can't type english well.
Deleteboo you think English is a tool to measure intelligence.. pathetic human being. your being negative dig your grave six feet under. decrypt my name and my hats off with you. bonus, it is MD5 and salted.
DeleteDecrypt my name
34b2d360434d39c6dff88714822996f9
Read Ponzi scheme in wikipedia so thst you guys will know what pyramiding scam is 😉. You really don't know what you are talking about making claims this or that company is a pyramiding scam. It's an overused term for heaven's sake.
ReplyDeleteRead "PYRAMID SCHEME" in wikipedia so you understand the differences between ponzi scheme and pyramid scheme.
Deletehttps://en.wikipedia.org/wiki/Pyramid_scheme
QUOTE
Pyramid schemes have existed for at least a century in different guises. Most multi-level marketing plans fall into a sub-group of pyramid schemes.[1]
UNQUOTE
I was a Usana Director Team, and really I worked very hard to become it. it's true the business plan is not easy to win money..I had to wait 3 month to win my first real commission to help me to buy my personal consommation..their plan is binary..they say they help you to develop your business..but two years after I never saw anybody join my team. I always had a problem with this plan..not equitable..and about the products they are good indeed..but definitly not the best..I found better..and shipper..cheaper sorry
ReplyDelete