From the Snake Oil Files

Bad business, bad religion, and bad science may be about to take a pummeling in the Texas courts in a bizarre and disturbing case.

Attorney General Greg Abbott is going after a marketing scheme that he says uses questionable research and religiosity to shift nutritional supplements. He filed charges Thursday in Travis County against Mannatech Inc., MannaRelief Ministries, the Fisher Institute for Medical Research, Mannatech CEO/MannaRelief founder Sam Caster, and MannaRelief medical director Dr. Reg McDaniel. He's charging them with multiple violations of the Texas Deceptive Trade Practices Act, with fines of $20,000 per violation. Abbott and the Texas Department of State Health Services are also after Mannatech for breaking the Texas Food, Drug, and Cosmetic Act, with fines of $25,000 per day per violation.

Here's the gist of the case: Coppell-based nutritional supplement firm Mannatech touts the benefits of what they call "glyconutrients, or plant-based 'health sugars.'" They use "educational" materials, mostly written by McDaniel, from the Fisher Institute (whose medical director happens to be McDaniel's wife, Candace). MannaRelief, also based in Grand Rapids, then takes donations to provide Mannatech products to children in developing nations. However, Abbott's arguing that the firm and its cohorts have knowingly made false claims that their pills and potions will relieve or cure everything from cancer to AIDS to Down’s syndrome.

In a response on Mannatech's website, Caster encourages his vendors that they should continue to sell, sell, sell and that "what we need now is for you and all Associates to continue focusing on your business."

If the plaintiffs are found guilty, there could be a lot of red faces. This is no fly-by-night operation: Abbott's suit notes this is a $400 million a year operation. The NASDAQ-listed Mannatech was touted last year by BusinessWeek as one of their hot growth companies. Somehow, both MannaRelief and the Fisher Institute got classified as 501(c)(3) nonprofits by the Internal Revenue Service. Even more embarrassingly, back in November 2001, McDaniel was invited to give testimony to the U.S. House Committee on Government Reform on using glyconutrients to combat bioterrorism.