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XanGo co-founder accuses partners of corporate looting in lawsuit

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  • terra nova Park City, UT
    May 24, 2013 11:14 a.m.

    Many of the comments on this board reflect a nearly illiterate understanding of business typical of those who think, but not deeply. Those excoriating MLM could substitute any form of business and find a suitable scapegoat.

    Substitute Big Banks for MLM because of the "too big to fail" fiasco where Wall Street robbed Main Street (and taxpayers) and then went right back to gorging themselves on incredible bonuses.

    Substitute the way that many CEO's run public companies with little regard for the ultimate outcome for their investors. They dilute value by awarding themselves enormous packages of options, warrants and bonuses at the expense of the common stock holder.

    Substitute Government and you find Congressman and Senators trading on insider information. Political cronies helping themselves to tax revenue in the form of businesses like Solyndra ring any bells?

    The fault dear reader is not in MLM (though it is not a faultless model), or more traditional business models. The fault lies in the the natural tendency to give in to the "rat-brain" and want more and more no matter what, who or how many are harmed.

  • SLC gal Salt Lake City, UT
    May 23, 2013 9:24 a.m.

    Nice to see a few thinly veiled Xango employees chiming in for damage control. Do you guys know if the juice is any good? I wouldn't know because I don't know anyone who sells it here in SLC..

  • sammyg Springville, UT
    May 21, 2013 10:17 p.m.

    Having known Bryan Davis and seeing him in action for about 5 years my money is on him if I was a betting man.

    Bryan is a very matter of fact type of person. Retaining the same the attorney that got a settlement for Angel should be enough to tell the average man what's going on.

  • JA Pleasant View, UT
    May 21, 2013 12:04 p.m.

    Like any traditional business, when done correctly, that business is a good thing that helps its employees and customers. When its not done correctly even MLM companies have problems. The problem with skeptics (like those who are trolling this topic), is they don't understand that MLM businesses are built in the homes of people, not isolated by the brick and mortar of a retail store where the public is unaware of the drama. If the average consumer was aware they would be shocked.

    So what to do? For those in MLM, let me HIGHLY suggest, if you like this industry, please considered doing business with a PUBLIC traded company. A public traded company is subjected to federal regulation requirements, that privately held companies cannot (and won't) maintain the standard for. It's the secret nature of these privately held companies that often lead to problems like Xango's, and because MLM is an "in the home" business, many people not familiar with business see it as a scam or fraud, when its just business.

    There are several public traded out there, choose wisely!

  • washcomom Beaverton, OR
    May 20, 2013 4:17 p.m.

    I hate pyramid schemes, personally. It's all about the "pitch and sell" to off-load your costs to someone else, whether or not the product is truthful.
    Those that are suckered into it deserve what they get. The downline suffers while those that got in "early" reap the benefits of hard workers below them.

  • Jewkes Mckenzie Orem, UT
    May 20, 2013 3:25 p.m.

    I have worked with Aaron Garrity in the past, but not at Xango. This is no suprise to me or anyone else who has worked with him. His selfishness and ego have cuaght up to him. I feel bad for all of the innocent people that have been hurt and will continue to be hurt for his wrongs and that of his team. I hope that justice will be served. It makes it seem that everyone and every company in the MLM industry is corrupt and that is not true. I have worked in the undustry for over 20 years and there are many good law abiding citizens who respect the law and respect others.

  • gamer PROVO, UT
    May 20, 2013 1:55 p.m.

    Xango was founded in a shady way and has continued shady. There are many good people that work there but it was founded by its original owners in a corupt manner. Some of them were very good men that later lost there way is all. I hope the 1,000's of people that are affected by these few men and their poor ethical decisions do not suffer too much on their behalf.

  • Impartial7 DRAPER, UT
    May 20, 2013 12:08 p.m.

    @ Max

    "Why MLM is legal has always puzzled me. It is a horribly flawed business model that does nothing but transfer wealth from the bottom of the pyramid to the top. "

    Where, in this religious state, could they find an example to copy?

  • jmason San Diego, CA
    May 20, 2013 11:35 a.m.

    Another Utah MLM in the news. Xango appears on scoreboards at BYU sports events, it's in its alumnus magazine. It's as if Xango has positioned itself so that everywhere the church is, it's there also. It's founders are probably all church leaders, BYU alumni. Interesting how Utah has become known for this kind of biz. Xango is a cash cow––that's really all it is. Nobody can even tell you what the product is or what they do. From top to bottom, it's all about salesmanship.

    In "Approaching Zion", Hugh Nibley talks about the "baffling contradictions" in our LDS culture. This story typifies such contradictions. This active Mormon finds this all very troubling.

  • JKR Holladay, UT
    May 20, 2013 11:35 a.m.

    As described above, the whole business model for MLM's is deceiving and dishonest. It involves selling unproven products to "distributors" creating a "downline" of sellers. When those people downline also sell product, some of the profits are kicked back up. Therefore, the higher one is in the pecking order, the better one's chance of making money, often enriching those at the very top at the expense of those at the bottom. Persons interested in exploring the problems with the MLM business model should look at http://mlm-thetruth.com/.

    I would add that most of the products for consumption sold by these MLMs including mangosteen juice (Xango), vitamins (USANA), and bovine colostrum (4Life) are "foods" with some thinly disguised medical claims. The "food" designation frees these companies from FDA oversight required for "drugs".

    Some additional interesting comments about Xango and MLMs can also be found today on KSL. I agree that the concentration of MLMs in Utah is a blight on an otherwise industrious (the beehive!) and well run state.

  • Uncle Rico Sandy, UT
    May 20, 2013 10:45 a.m.

    @sneakyjimmy

    96% of people are consumers, not entrepreneurs. They are the majority of the people and post things like you see above.

    They were taught to go to school, get good grades and get a good job. It's not their faulty, they were TRAINED this way. They will never pursue anything uncomfortable, only ridicule those who do. 4% pf the population are entrepreneurial minded. They will ignore the critics and believe making a lot of money in a short period of time is a good thing. Plan A work your butt off for 35 years, hope for a retirement pension. Plan B: Do plan A until you dont have to.

  • Johnny Triumph American Fork, UT
    May 20, 2013 10:45 a.m.

    This is rich...wasn't Xango founded on Morinda's ideas? Funny that now they're crying foul!

  • Martin Blank Salt Lake City, UT
    May 20, 2013 10:38 a.m.

    Ben H., that's already in the works. Word was that Xango didn't have the cash to continue the sponsorship. Maybe this is why.

  • Sneaky Jimmy Bay Area, CA
    May 20, 2013 9:42 a.m.

    It's amazing to see all the defenders of MLM. By the way Walmart is not a pyramid company. The greeter at Walmart cannot recruit other greeters and get a share of their income. The only thing MLM is good at is selling average product at exorbitant prices to people that want to get rich quick.

  • Danish American Payson, UT
    May 20, 2013 9:35 a.m.

    @procuradorfical: If you look at the corporate structure of WalMart it also makes a pyramid. There is only one Chairman of the Board or CEO with all the workers at the bottom--that forms a pyramid. Every city, town, & country is also a pyramid organization. Having sold software the MLM industry for a number of years I can say that there are good ones, some that aren't so good, and some that are crooked. It's unfair to do a broad brush of any industry.

  • Ben H Clearfield, UT
    May 20, 2013 9:26 a.m.

    Time for RSL to get a new jersey sponsor.

  • InspectorC Wasatch Front, UT
    May 20, 2013 9:21 a.m.

    TO: bigv56 @ 7:10 a.m. ----

    What are you trying to say?! I suggest using complete sentences, punctuation, explain yourself thoroughly, provide sources to back up your claims, etc.
    ~~~~~~~~~~~~~
    Now for my general comment: XanGo is an excellent Utah company with MANY tremendous people!! They contribute almost endlessly to the community, the economy and worldwide growth and development of their "associates". I am sorry to see them having these kinds of problems, and hope they can get things fixed and get through it all without too many scars! 8^)

  • Buzzards LEHI, UT
    May 20, 2013 9:18 a.m.

    Yet another evidence of the fact that the very business model of an MLM engenders dishonesty. What is the difference between promising riches to new distributors who literally have no chance whatsoever to make money and padding expense reports? I look forward to the day when Utah recognizes and moves away from this fraudulent type of company. And yes, I mean every one of them.

  • Max Charlotte, NC
    May 20, 2013 8:19 a.m.

    Why MLM is legal has always puzzled me. It is a horribly flawed business model that does nothing but transfer wealth from the bottom of the pyramid to the top. Unfortunately, there are still many financial and economic illiterates who get sucked into this.

  • procuradorfiscal Tooele, UT
    May 20, 2013 7:55 a.m.

    Re: "XanGo co-founder accuses partners of corporate looting"

    Isn't that what the whole company has been doing all along?

    If this company's stuff -- or Amway's stuff, or Nuskin's stuff, or any of the other pyramid-selling organizations' stuff, for that matter -- were actually any good, you could buy it at Wal-Mart.

    They wouldn't need to sell it using deceptive, high-pressure tactics or pie-in-the-sky promises of quick riches that, mathematically, can only come true for a tiny cabal at the very top of the pyramid.

    It's sad that the twin demons of desperation and gullibility -- the same evils that assure longevity of the cynical gaming and lottery industries -- have made these mephistophelian enterprises a permanent scar on Utah's and America's business landscape.

  • bigv56 Cottonwood, CA
    May 20, 2013 7:10 a.m.

    The whole thing is a joke. The magic juice which has no proof of efficacy. That and an mom. Utah ,the capital of scam

  • My2Cents Taylorsville, UT
    May 20, 2013 5:54 a.m.

    Isn't that the idea of a marketing company to loot and pilfer from their investors and employees? SOP, and the investors are now on notice to get out so we can consider this company another victim of its own greedy owners.

  • opinion 47 SOUTH JORDAN, UT
    May 19, 2013 11:36 p.m.

    @ JJJHS

    Sorry your last mlm never worked for you. Next time do some due diligence before you join another and quit blaming the industry for your poor choice.

  • Cougar always Alpine, UT
    May 19, 2013 11:26 p.m.

    Mr. JJJHS you make a false generalization about a definition and an industry, and do it from a city not known as an example of integrity. If these individuals are guilty of the charges levied, I hope justice will be done. It is a sad fact that some in every industry take advantage of their positions and forget about their duty to treat others fairly. But lets not demean those people of integrity in every industry who are examples of rectitude, fairness, and generosity.

  • JohnJacobJingleHeimerSchmidt Beverly Hills, CA
    May 19, 2013 10:19 p.m.

    A Multi Level Marketing (MLM) company by definition is crooked. Surprised it took this long to have another Utah COunty MLM be exposed.