Nu Skin Settles with SEC

Nu Skin ReviewIf you’ve been paying attention lately, you’ll notice that Nu Skin has been getting a lot of attention.

Back in 2014, we reported that Nu Skin was under investigation from the SEC.

What was going on? Why was Nu Skin being investigated?

I tell you all about it in my Review of Nu Skin

Read below to find out more.

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What Is Going On With Nu Skin?

While all schemes in the MLM world are illegal in some degree, there was a report back towards the end of 2014 that Nu Skin was being held under investigation by the SEC. The SEC took note of the schemey nature that was taking place with Nu Skin, so it only made sense that they’d want to look further into what was taking place within the company.

However, Nu Skin’s CEO Truman Hunt reported that he was completely unaware as to the investigation that was taking place. We aren’t entirely sure how you can be that oblivious to what’s taking place with your company, but that’s the claim that Hunt made.

Fast forward to April of 2015, and Nu Skin officially announced that they were just then aware of the investigation the SEC was conducting. Again, how the company went this many months without realizing that the SEC had then under investigation we don’t know.

And, before we dive too far into the news that we have to share, we need to take a bit of a recap as to what’s been going on with Nu Skin as of late.

Going back to early 2014, that was a news report that authorities in China had become aware that Nu Skin was operating as a pyramid scheme. However, before this news story was released, it was found that Nu Skin made some donation to a faceless charity. This alerted the SEC quite a bit, as this donation looked to be a heck of a lot like a bribe.

Now, move back up to September 20th of 2016 – this year – and the SEC has formerly asked that Nu Skin cease and desist any and all operations that are taking place.

Nu Skin Scam

However, in typical MLM scheme fashion, Nu Skin has been hesitant to actually come out and admit that what they’re doing is wrong and illegal. Instead, the company has decided to offer a form of settlement agreement with the SEC.

According to the settlement, about $154,000 was sent to the charity by Nu Skin, but this charity turned out to be that of a “high-ranking Chinese Communist party official.”

The SEC said that, because of Nu Skin’s failure to accurately state where this money was going, they were in violation of “internal controls and books and records provisions of the Foreign Corrupt Practices Act (“FCPA”).”

The whole investigation initially started after Nu Skin held an event in China back in 2013 that wasn’t authorized by the government at all. Nu Skin used the meeting as a way to promote the company, but since they didn’t have a selling license or anything, they were in violation of holding an unauthorized meeting in the country.

Following all of this and the problems that arose for Nu Skin in 2014, a full-blown AIC investigation was then launched on the company.

In regards to the charity that Nu Skin got involved with, here’s what the reports say.

“A Nu Skin China employee contacted the Party Official, who was his acquaintance, to suggest a charity located in the province. The Party Official had a pending request to Nu Skin China to facilitate obtaining college recommendation letters to U.S. universities from an influential U.S. person for his child. The Party Official proposed a charity, although at the time a branch of the charity had not yet been established in the province and it had no operations there. The Party Official, however, was associated with the entity that was responsible for establishing the charity in the province. Further, the provincial head of the AIC had previously reported to the Party Official.”

As a result of all these violations, Nu Skin is looking at a fine of around $431,088.

However, as if all this trouble wasn’t enough bad news for Nu Skin, the company then decided to go ahead and get involved with an RMB bribe that carried a total value of just around $1 million.

All while this is taking place, Nu Skin US claimed that they were unaware of the correlation between the donation to the charity and the AIC investigation that was taking place – creating for even more of a mess than Nu Skin already had on its hands.

All-in-all, among all of this corruption and poor communication, it was found that Nu Skin US failed to keep up to date on what was going on with Nu Skin China, and Nu Skin China was nothing more than one of the rottenest companies we’ve seen in the MLM world in quite some time.

Despite all of this though, the settlement between Nu Skin and the SEC was dealt with for a sum of just $765,688.

While that might sound like a lot of money on its own, take this into consideration.

Earlier in 2016, Nu Skin paid of a settlement of $47 million to a civil lawsuit that was filed by shareholders of the company who had had enough of Nu Skin’s shady operations and business.

Even with that being the case, Nu Skin was able to get off the hook for well under $1 million. That right there is outrageous, but it’s the way that things worked out.

The settlement also requires that Nu Skin halts all operations of theirs, but what’s to stop the folks behind the company rebranded themselves and hitting the scene within a matter of weeks or months?

Absolutely nothing.

And Now, My Nu Skin Conclusion

 

I hope you have gained value from my Nu Skin Review.

I have put all the details you need to know here, because all other reviews of Nu Skin have been fairly limited with details.

If you do decide to proceed with Nu Skin or any business, you’ll find my free training helpful – I will show you how to make money online.

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