OpTree

We have received a couple comments as to why we have not run the story on Gold Canyon Candles. So, in order to appease our readers, here is the whole story. I want to start off by saying there are many many conflicting reports, however I will get to the bottom of it the best that I can……

On September 10th, Maricopa County sheriff’s deputies along with an entire SWAT team raided the Arizona based Gold Canyon Candle Company. The candle company makes candles that are sold through a network of independent distributors. The raid was conducted for two reasons, 1) to arrest those suspected of being involved in identity theft and 2) arresting illegal immigrants.

The September 10th raid netted 23 arrests on suspicion of identity theft and 42 arrests for illegal immigrants. An additional five U.S. citizens were arrested on outstanding warrants.
Gold Canyon Company spokeswoman Rebecca Clyde said deputies showed up with a search warrant, not only looking for illegal workers, but also looking for specific individuals on charges of identity theft. The Sheriffs Dept says that they have already verified three victims of identity theft so far, including one person who is a Washington, D.C., White House staff member working in the Bush administration.

There have been raids on several businesses in the area in the last year and in response to those raids Gold Canyon claims they have taken steps to ensure that all of their employees are in compliance with the all immigration laws. Company spokeswoman Rebecca Clyde says the company has used e-Verify since last year and has always complied with federal law. “Gold Canyon has always used every single tool that the government has given them to verify documents and done everything it legally is allowed to do to verify employees’ status,” she said.

Gold Candle remains firm in their stance that they will be found innocent of all charges related to hiring illegal immigrants. Arizona recently passed an employer-sanction law that punishes employers for hiring and employing those who are not legal to work in the United States.

There have been claims back and forth of some shady activity by the Sheriffs department and by Gold Canyon. Reports from over 100 Gold Canyon employees say that their civil rights were violated by the Sheriff’s department by being held against their will in conference rooms for up to five hours. On the other side of the fight, the Maricopa County Attorney Andrew Thomas said that they received a tip that workers were told by someone in management to toss their IDs and run if the sheriff showed up.  If you want to read Gold Canyon’s response, click here.

Only time will tell what will come of all of this. The company thus far has not been charged with any wrongdoing. The sheriffs department and attorney general say that it will take some time to sort through all of the papers, but they will stay on top of it.

As details of the raid and its aftermath become more clear, we will definitely keep you up-to-date. In the meantime, its business as usual over at Gold Canyon Candle Co. Oh….and by the way, Gold Canyon is a member of the DSA- and no word or update on the status of the company from the DSA, another example of your hard earned money at work over at the DSA.

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The news just keeps getting worse for YTB after being sued by former employees, having a class action suit filed against them and being sued by the California Attorney General, along with the most recent firings of over 20 of its employees, now comes word that a board member has resigned.

John Simmons, a prominent attorney, has just announced that he has resigned from the board of YTB. Both Simmons and the online travel company were careful when making statements about his departure.

YTB released a statement saying, “Mr. Simmons’ resignation was prompted by his belief that as a general matter he could not effectively influence the practices of the company’s management. Mr. Simmons has not furnished the company with any written correspondence concerning the circumstances surrounding his resignation.”

Simmons, an attorney specializing in personal injury law, did return calls to reporters, but declined to offer any other statement, instead saying that he had reviewed the statement given by the company and that comment will have to suffice.

Simmons served on the company’s Investment Committee and was considered and Independent Director by YTB.

YTB made sure to file all necessary papers, and did file the appropriate 8K with the SEC to formally announce the resignation.

Popularity: 5% [?]

NIR Diagnostics, Inc, an Ontario based medical device company, has just announced that they have terminated their Licensing Agreement with Shaklee over claims that Shaklee has breached the terms of the Agreement by failing to pay NIR invoices on time.

If you remember, we told you just a week ago Shaklee and NIR had joined together in a patent infringement suit against Masimo over claims that Masimo infringed on technology related to a non invasive medical device that NIR had licensed for use to Shaklee. While that case was settled, it seems that they partnership between NIR and Shaklee has broken down.

Shaklee Corp and NIR entered into an Exclusive License Agreement two years ago, August 2006. The agreement between NIR and Shaklee allowed Shaklee to use technology related to NIR’s patented non invasive medical devices NIR was very excited about the agreement and was looking forward to a lucrative partnership. Duncan J. MacIntyre, NIR Diagnostics President, CEO and Executive Vice Chairman released a statement in August 2006 expressing his excitement over the agreement, “With sales in the global nutraceuticals industry projected to reach $187 billion by 2010, and with only expensive and time consuming laboratory testing available to monitor the impact of these products, this market is an ideal application of our non-invasive technology,”

Shaklee used NIR’s technology as part of their internal testing of nutritional products. The pain free devices from NIR allowed Shaklee scientists to develop better products and allowed them to test their products in a non-invasive pain free way.

NIR claims that Shaklee violated the terms of the agreement by failing to pay amounts due to the company on time. Shaklee disputes all claims and is adamant that they in no way breached the terms of the contract.

Popularity: 2% [?]

Mannatech (NASDAQ: MTEX) is facing more legal problems. This time from the enforcement division of the Securities and Exchange Commission. Mannatech, the Texas based supplement maker, is no stranger to lawsuits. The company is still dealing with a complaint filed by the Texas Attorney General over claims the company has made about the health benefits of its supplements.

This time around, it’s the SEC is threatening to take action regarding the suspicious firing last October of Mannatech’s accounting firm, Grant Thornton LLP. The threat, in the form of a Wells notice, was sent to the company on Friday, with copies being sent to both the CFO and chairman of its audit committee. The firing came after Thornton demanded that Mannatech either remove chairman and founder Sam Caster from all responsibilities, or find a new accountant. Mannatech decided to fire Grant Thornton and then hired a new firm, BDO Siedman LLP, the next day.

While Mannatech did release a statement to the SEC regarding the firing, they apparently did not file the appropriate 8K that is required within a 5 day period, and now the SEC wants some questions answered.

The Wells notice is merely an indication that the SEC’s enforcement division plans to seek a cease and desist proceeding against Mannatech. The Wells notice gives the company a chance to defend itself in an effort to prevent any further action.

I’m guessing that Mannatech will fully cooperate with the SEC. The complaint filed by the Texas Attorney General last year, is still pending in court, and Mannatech CEO Wayne Badovinus has openly admitted that the earlier complaint has taken a significant financial toll on the company. I suspect we will see a resolution within the next week- we will keep you posted.

Popularity: 2% [?]