Reader comments
Utah Supreme Court considering XanGo case

Greed.... | 8:40 a.m. Dec. 9, 2008

It always is a big factor in cases like these. Greed stirs up trouble and the lawyers get into it to get their piece of the action. Xango...or whatever it is called should be called Tango...yes, they all dance their way to the bank. Multi level work gets into the way of many otherwise good LDS people and it takes it toll on their spiritual lives. I have seen it happen more than once as they run off with their fists full of cash.

Jim Maack | 8:43 a.m. Dec. 9, 2008

It sounds like sour grapes from these minority investors. Since when can't the founders and developers of a company decide the direction that company takes? These unhappy investors should do what others do, sell their shares and re-invest in something else. Congratulations to Xango for being the success it is and it's contributions to charitable causes.

Wahdee | 9:09 a.m. Dec. 9, 2008

I personally know Joe Morton and his family, and they are down to earth real nice people. These investors are claiming that the six founders received too much compensation. They own 86 percent of the freaking company. The investors have less than 1%! Sure they have nice houses and cars and travel frequently, but that is the result of having a sucessful company. We should not punish these people for being sucessful, we should applaude them. The Morton's perform many service projects in areas of the world that are less fortunate than here. These small investors should just be happy they got a return on their money. They could have lost like I did on my 401K.

Comments continue below

wallofvoodoo | 10:28 a.m. Dec. 9, 2008

Nobody is saying they shouldn't make money. Using company assets to pay for personal expenses (pianos, vacations etc.) is not only not ethical but illegal. Even if they win the suit, they should worry about the IRS coming to check this one out.

Tax Guy | 12:28 p.m. Dec. 9, 2008

This story seems to be based on allegations rather than facts. Lazy reporting, probably. As long as their compensation has been reported on W-2's, the IRS doesn't care whether it was cash or some other form (pianos and vacations). I agree with Jim and Wahdee, let's celebrate the accomplishments of a great corporate citizen.

Annoyed Resident | 1:07 p.m. Dec. 9, 2008

All of these health drink companies are scams... I cannot believe people actually buy them. Can't anyone think of an original business? There are about 50 of these little health drink companies and everyone is run by a big greedy scam artist. I would like an investigation into the companies that come around and say their drinks cure cancer, pretty sure that is false advertising. These companies will all be out of business soon. Then maybe gullible Utahans won't fall for these companies traps again.

RJ | 1:39 p.m. Dec. 9, 2008

Hey Annoyed. You paint with a very wide brush and speak with assumed certainty. I know several people that have received significant benefits. "little health drink companies"?? Xango is very big, and does a lot of important charitable work. You know not of what you rant.

Greed | 3:27 p.m. Dec. 9, 2008

This is another example of corporate greed as we have seen on the national level. Enron type of fraud is alleged in the underlying case. The founders ought to offer a generous buyout and limit their personal liabilities.

Agree with Annoyed | 4:17 p.m. Dec. 9, 2008

I hate these "health" drinks. The only benefit they give is a placebo effect to the naive. If there were a scientific benefit, Xango, Noni, etc. would publish studies in a reputable journal. Their silence in that area speaks volumes.

Jason | 4:36 p.m. Dec. 9, 2008

This isn't about corporate greed. this is about Mormon greed! Utah is the MLM capitol of the world because so many greedy Mormons start up these scam companies and defraud people out of their hard-earned money by stories and lies. No different than the Mormon religion!

Newport Doc | 5:20 p.m. Dec. 9, 2008

ALL of these so called "health drinks" prey on the gullible. There is not a bit of peer reviewed scientific evidence to support their unfounded claims.

Edward P | 6:12 p.m. Dec. 9, 2008

I've been using xango for some time and I absolutely love the product. It has absolutely changed my life.

Business Ethics First | 9:28 p.m. Dec. 9, 2008

Jim Maack you are misguided. The Xango founders came to angel investors with hat in hand asking for capital to start their company and try and fufill a dream. From what I've heard not one dime of personal money from any xango founder was invested to start Xango. 100% of the capital required to start the company came from outside angel investors. If that is the case, the Xango founders have a legal and moral obligation to put the interest of their investors BEFORE themselves. If more people did business this way we wouldn't have so many bail outs, lawsuits, forclosures, and bankrupcies. Let's hear the case and find out how they have treated their investors before we make judgements. When you accept capital contributions from investors you pick up two ends of a stick.

Amazing Company | 10:09 p.m. Dec. 9, 2008

Yes Mr. Ethics, it looks as though the other angel investors are content with the way the company is being run.

Amazing Investors | 2:02 p.m. Dec. 11, 2008

You may be right. However if Xango is a Utah LLC and depending on how the Operating Agreement of the company was set up, the small ownership of Angels might have just as many rights, protections and control as the 84% the founders own. We don't know what was promissed to all the angel investors many years ago when the Xango founders needed Angels money to start the company. Unfortunately, many times people, companies and deals have a way of changing once the money starts rolling in.

Re: JAson | 1:31 p.m. Dec. 12, 2008

AMEN! Serious look just in Utah county alone! Firstline securities,and Fibernet all these so called lds owners who do shady things. But I am sure when they have to renew their temple membership they say their honest in their dealings. But of liars and frauds.

tom | 5:28 p.m. Dec. 27, 2008

hey annoyed resident, you should do your due diligence before you rant, you should first check what your are talking about before you talk less another shame you because of the substance of what your saying. Have you read the patents of these drinks. it is a mentality that we are dealing with. most of us have been raised in a culture where we believe that drugs are the answer, not considering the fact that drugs are derived from natural substance. the drug aspirin that most use is derived by drug companies from the willow tree. what is the difference between someone deciding to use liquid format to deliver health benefits than using tablet form. and then protecting it with a patent. and then deciding to benefit users by using consumers to talk about the product. guess you would rather have a commercial tell you about a product, rather doctors and satisfied customers.

Dan Dimit | 2:22 a.m. Jan. 27, 2009

You can always go to pubmeddotcom and look at the peer reviewed articles there for any kind of health claim.
Look up mangosteen and you'll find almost 100.
That looks like research to me.

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