MLM Mannatech Under Fire

Posted on 24. May, 2007 by Ty Tribble in Network Marketing News

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Is it just a matter of time before the Texas Attorney General files a lawsuit against Mannatech?

Star-Telegram:

As a proponent of alternative medicine and the driving force behind a Grand Prairie charity, Dr. H. Reginald McDaniel portrays himself as a lonely warrior battling the forces who consider drugs the only way to treat disease.

"Serving" is how the Mansfield physician often signs off on his correspondence.

The question is, Who's being served?

For years, McDaniel's charity, known as the Fisher Institute for Medical Research, has concentrated on funding and publishing studies favorable to the dietary supplements developed by Mannatech Inc., while he has received millions of dollars in stock and cash from the company.

The relationship between the institute and the network-marketing company, detailed in public records and other documents, raises the issue of whether the charity has been misused.

"The information you have shared with me about the relationship between Mannatech and the Fisher Institute does not pass the smell test," wrote Jan Soifer, an Austin lawyer who previously served as chief of the Texas attorney general's charitable trusts section, after examining documents provided by the Star-Telegram.

Under McDaniel's guidance, the institute has periodically published a journal devoted almost entirely to articles and studies portraying the potential effectiveness of Mannatech's products, known as glyconutrients, in dealing with various diseases and conditions. The journal, called Proceedings, has become a sales tool for Mannatech associates, who build "downlines" by persuading others to buy the company's products.