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.
You 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.
Well 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"?
It'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.