Neways
| Type | Public |
|---|---|
| Industry | Multi-level marketing |
| Predecessor(s) | Images and Attitudes |
| Founded | 1992 |
| Founder(s) | Thomas and Leslie D. Mower |
| Headquarters | Springville, Utah, USA |
| Key people |
Robert S. Conlee, CEO Chris Crump, CAO and General Counsel Kevin Givan, CIO Will Burgess, VP, Operations |
| Website | www.neways.com |
Neways International is a privately held American multi-level marketing organization that manufactures and distributes personal care products, nutritional supplements, and household cleaning products and has a presence in more than 23 countries.[1] Neways is headquartered in Springville, Utah. The company claims that its products are chemically safer than other brands.
Company history
Neways, originally named "Images and Attitudes", was founded on June 9, 1987 by founders Thomas and Leslie D. Mower. The company was renamed to Neways in 1992 with its original manufacturing facilities in Salem, Utah. Neways corporate headquarters was moved to Springville, Utah in 2003, with the main manufacturing facility remaining in Salem. Neways was acquired November 8, 2006, by Golden Gate Capital, a private equity firm headquartered in San Francisco, California.[2] Golden Gate Capital also owned Herbalife before taking it public.[3] In November 2011, Neways was forced to refinance the company’s capital structure; restructuring was completed in January 2012. The company's primary owners are now private equity firm Z Capital Partners, L.L.C. and funds affiliated with S.A.C. Capital Advisors, L.P.[4] In July 2012, the Neways board of directors named Robert Conlee as Chief Executive Officer and Chairman of the Board.[5]
Controversies
In 1993 Neways was forced to recall a weight loss product as it was found to contain a dose at medical levels of the prescription diuretic furosemide.[6]
In 2004 Neways was convicted on criminal charges relating to the distribution of a pharmaceutical product containing human growth hormone, which is illegal to distribute without a prescription.[7]
In 2005, the founders Thomas and Leslie Mower were convicted of tax fraud for concealing over four million US dollars of revenue. They also presented false loan documents and lied to an IRS special agent.[8] In 2006, Thomas was sentenced to 33 months in prison to be followed by 3 years supervised release and ordered to pay a $75,000 fine in addition to paying prosecution costs. Leslie was sentenced to 27 months in prison to be followed by 3 years supervised release and ordered to pay a $60,000 fine.[9]
In 2008, Neways Japan Ltd. was forced to suspend signup of new distributors by the Japanese government during a three-month period (February 21 to May 20) for deceptive conduct occurring in 2006, after distributors lied about competitors products, claiming they would cause cancer.[10]
References
- ↑ Neways Investing Activity - Golden Gate Capital
- ↑ Press Release > Golden Gate Capital Acquires Neways International SPRINGVILLE, Utah (November 8, 2006) News - Golden Gate Capital
- ↑ Herbalife Investing Activity - Golden Gate Capital
- ↑ NEWAYS COMPLETES REFINANCING: New Capital Structure Positions Company for Future Growth Accessed 30 Aug 2012
- ↑ Neways Enterprises Appoints Robert S. Conlee as Chief Executive Officer, and Chairman of the Board
- ↑ -"The Food and Drug Administration today announced that Neways Inc., of Salem, Utah, is recalling its "Quickly" weight-loss product"
- ↑ - "Guilty plea for Neways on hormone"(OCTOBER 2003)
- ↑ #131: 3-18-05 UTAH CORPORATE EXECUTIVES AND LEGAL COUNSEL CONVICTED OF TAX FRAUD FRIDAY, MARCH 18, 2005 - WWW.USDOJ.GOV
- ↑ Corporate Executives and Legal Counsel Sentenced for Tax Fraud - FY2006 Examples of General Tax Fraud Investigations - Internal Revenue Service United States Department of the Treasury(Wayback )
- ↑ DPJ vice leader received donations from multi-level marketing firms+ October 18, 2008 (Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Oct. 18_(Kyodo) - Technology Marketing Corporation