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Purported Special Investigation: Organo Gold Federal Investigations

CHANNEL 5 NEWS Investigation: Trouble Brewing

Was the title of the original investigation report launched by KRGV in Texas when they were informed of a complaint filed with Greg Abbott the AG of Texas.

According to the first article, it seems that the investigative report went to an Organo Gold business meeting and witnessed firsthand that the Organo Gold representatives were NOT operating an illegal pyramid based on what was written on the KRGV website:

“Organo Gold brands itself as a “healthier coffee.” In a packed house in Weslaco, representatives were recruiting others to sell the instant coffee.”

Notice in the above statement the KRGV reporter is very clear “Recruiting to SELL the instant coffee.”

Based on the above statement written by the reporter it is easy to see, even they realized a sales presentation was going on, not an illegal pyramid recruiting scheme.

Here is another great example from the ornignal article written on Feb 27th, 2012 and updated March 1st 2012.

“The crowd of Spanish speakers was pulled in by the potential payout. A man identified as “Benjamin” explained, “You get two people to sell coffee. They get two people to sell coffee. You make money on all those people who sell coffee under you.”

Again the report writes about SELLING coffee, and recruiting others to SELL coffee.

Now, here is where the report truly shows their biased opinion:

The pitch explained that someone could become a distributor and build a sales team. The business venture was amplified with a visual of a pyramid built of people.

The KRGV report uses the phrase “Visual of a pyramid of people” What else would it by. As a matter of fact the KRGV TV Station corporate structure is a “pyramid of people!”

Now, I am not a rep for Organo Gold, but I am an advocate for Network Marketing. I am not an expert on mushroom coffees, or if the Organo Gold products are as good as the reps state they are. What I do know is at no time does this reporter state any of the following which are grounds for an investigation:

1. Money earned strictly from recruiting people

2. Illegal medical claims or curing some health issue

3. Showing checks or guaranteeing a specific amount on money that can be earned

4. Asking prospects to “INVEST” in Organo Gold

The follow-up report was titiled:

Special Investigation: Organo Gold Federal Investigations

In this report KRGV shared their undercover video of the Organo Gold business opportunity meeting, and again the biased opinion of the reporter is vividly clear.

“CHANNEL 5 NEWS got copies of dozens of complaints dating back to October 2010. Consumers from Texas, Florida, California, Colorado, Illinois, Mississippi and New Mexico complained. Some of the documents we requested were withheld because “information obtained by the Commission in a law enforcement investigation is exempt from disclosure under the Freedom of Information Act.”

If you take the time to review the original letter sent from KRGV, you can see they asked about Gano Excel as well as Organo Gold, and they FTC did not make clear which company they were referring when mentioning the  criminal investigation. Nor did they state that any wrong doing was uncovered or if the investigation was still going on. Yet the reporter used this in her report to cast doubt on Organo Gold.

In the next statement from the reporter she again twists the facts to work in her favor.

“The FTC is just one of the federal agencies looking into Organo Gold. The Food and Drug Administration investigated Organo Gold’s CEO in 2004. He was issued a warning that his company was breaking the law by making medical claims that could not be verified.”

Notice she uses present tense, when stating “The FTC is justone federal agency looking into Organo Gold.” Yet in her second sentence she is clear the FDA looked into “Bernardo Chua in 2004″ which has NOTHING to do with Organo Gold currently. This was when Mr. Chua was an executive at Gano Excel. Not one does she mention why Mr. Chua left Gano Gold to launch Organo Gold!

I do fully agree with the reporter everyone should consult their doctor before using any herb based supplement. Or any other supplement for that matter.

So, as the network marketing community, don’t be casting stones at Organo Gold or any other company. I don;t know any successful consumer based company inside or outside of the direct selling channel, which the FTC doesn’t have a file. This includes Proctor & Gamble, Johnson & Johnson, Coke, Tylenol, Etc.

TX Complaint Against Organo Gold

FTC Complaints