XanGo Branding and Bashing Heats Up in Utah
XanGo's estimated earnings for the time period between 2005 and 2006 were in the $38 million dollar range, with co-founders Garrity and Morton netting an astounding $6 plus million each in profits. Allegations of misuse of everything from company credit cards to expense accounts placed XanGo in the position of Defendant for several lawsuits.
Legal counsel for the company states that as with anyone who enjoys such phenomenal success in so short a time period, there will always be those who would seek to unravel the fabric holding things together. However, XanGo execs were responsible for spending hundreds of thousands of dollars on things like private chartered plane rides, shopping excursions in elite New York stores, pianos, vacations in Hawaii, and personal gifts for spouses on the company credit card, while also being given a substantial $6,000 per month vehicle allowance.
Although both Garrity and Morton have enjoyed their share of accolades for time spent in the multi-level marketing arena with such companies as Enrich International, and Morinda Holdings (who operate Tahitian Noni International), XanGo is now receiving scrutiny for not only the financial practices, but further allegations that the founders 'stole' their idea for the mangosteen based juice from Morinda, and did not get it from Joe Morton's call to Aaron Garrity regarding a fruit he was served in a restaurant, as claimed. Morinda would later sue the five founders of XanGo based upon these allegations. The matter was settled out of court, and the records are sealed.
Angel Investors LLC, a 1 percent stock owner in XanGo, is among those filing lawsuits against the company. The Plaintiff is claiming that XanGo was "recklessly run" and thereby caused financial damage through improper conduct to its shareholders. The lack of accounting controls over the use of personal credit cards seems to be the prevalent basis for the lawsuit.
Company spokespersons and legal counsel state that such gifts and bonuses are commonplace in the marketing industry and that all expenses have been accounted for and reported for tax purposes.
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