According to a series of Bloomberg articles, Mannatech, an MLM selling health-related products, is floundering in the aftermath of findings that a "scientific" study of one of its products was falsified.

In March, 1999, David Evans of Bloomberg, LP, wrote an article pointing out the inconsistencies between what Mannatech was telling distributors and consumers about its products, and what it was telling its stockholders.

"Mannatech Inc. tells consumers scientific studies show its nutritional supplements are safe, promote good health and are even covered by a health insurance plan.

"Investors get another story. In documents for its initial public stock sale last month, Mannatech told potential buyers it doesn't know if its products are safe, or even if they work."

Additionally, in paperwork filed prior to Mannatech's initial public offering (IPO) of stock,

"Mannatech cautioned investors that its MVP product, marketed for weight control, contains ephedrine, a substance the U.S. Food and Drug Administration has linked to heart attacks, strokes and death. There are no warnings in the company's literature for consumers about MVP."

In August, 1999, it was discovered by the Bloomberg reporter that a study on one of Mannatech's products, conducted by Dr. Darryl See, was fraudulent. Dr. See claimed to have received a grant from the National Institutes of Health to conduct the study, which was supposedly carried out under the auspices of the University of California at Irvine Medical School.

The truth? Dr. See had left the University 11 months prior after it was found that he had violated research rules. Dr. See claimed that the head of the school's infectious diseases department supervised the study; Jeremiah Tilles knew nothing about it. Dr. See claimed that much of the testing was carried out by a lab technician; she claims she knew nothing about the study.

In the meantime, Dr. See was paid $100,000 by Mannatech in speaking fees and research grants, and his wife was a Mannatech distributor.

The NIH has asked Mannatech to cease using its name in any promotional materials. Mannatech is now suing Dr. See, although they still apparently plan to use the bogus study to sell their product.

Sam Caster, Mannatech's president, has been under the regulatory gun before. In 1991, he was investigated by the State of Texas, and agreed to stop selling a device called the "Electracat," to stop making claims unsupported by scientific evidence about any product, and to pay $125,000 in investigative costs. This occurred two years after Caster was accused of deceiving consumers over an energy-saving product.