Source: 6/15/2010

XanGo Branding and Bashing Heats Up in Utah

Aaron Garrity, Gary Hollister, Joe Morton and two others, founders of XanGo, find the price of success comes not only with perks, but with drawbacks as well. Founded in 2002, XanGo offered their bottled mangosteen fruit juice, in bottles less than a quart in size, for $25. Millions have been sold, making both the co-founders, and those who sell the product, very rich.

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.

View Xango Review

Related News

  • Xango President Earns Stevie Award
    XANGO Global President Leslie A. Gallacher was recently selected as an Executive of the Year award winner in the 2015 Stevie Awards for Women in Business Program.

    Promoted to company president earlier this year, Gallacher has been involved in nearly every function of XANGO's business since 20...  Read More...

  • XANGO Launches Aeris Anti-Aging System
    LAS VEGAS, NV , Sep 11, 2015 -- Global wellness and direct sales leader XANGO today at its global convention at the MGM Grand Resort & Casino launched a complete anti-aging solution: XANGO Aeris. Featuring a three-step system to reverse the signs of aging, Aeris firms skin around the eyes, and reduc...  Read More...
  • Xango Names Names Ryan Anderson VP of US and Canada Markets
    LEHI, UT--March 10, 2015 - XANGO, a global wellness and direct sales leader, today announced the appointment of Ryan Anderson as its new vice president of the U.S. and Canada markets. Anderson returns to XANGO after serving in executive positions in other network marketing companies the past four ye...  Read More...
  • XanGo Lawsuits Settle Out of Court
    XanGo and a cofounder have settled lawsuits against each other. Bryan Davis, a cofounder of XanGo, sued the company in Federal court in May, alleging it defrauded him and diluted his ownership interest in the company by falsifying financial information that also led Davis to personally guarantee ...  Read More...


Xango News Archive

New Companies on Npros

Receive News and
Updates from

 Send me news updates
 Send me New Companies

RSS Npros News Feed