Sam Castor, founder of the new US-based company EMSquared, previously led Mannatech until his 2007 resignation amid legal and regulatory controversies. His latest venture, headquartered in Texas, states its purpose as "eradicating malnutrition" through "squared" collective efforts. Castor is credited as EMSquared's CEO and Founder.
Castor founded Mannatech in 1993. He served as its CEO for fourteen years, resigning in 2007. During his time at Mannatech, public records and company materials often identified him as "Samuel L. Caster" or "Sam Caster." Promotional material for EMSquared now uses the spelling "Sam Castor."
Mannatech board member Larry A. Jobe suggested Caster's resignation allowed him to focus on company marketing. Mr. Jobe also noted the board was not displeased with Caster, but the ongoing lawsuits caused members "a lot of concern." Paperwork filed with the SEC indicated disagreements between Caster and the board of directors as the reason for his departure.
Mannatech faced a class-action lawsuit filed by stockholders in 2005. The suit alleged the company made a series of material misrepresentations. Specifically, it accused Mannatech of failing to control sales associates who made false claims about product efficacy.
Separately, the Texas Attorney General charged Mannatech and Sam Caster in July 2007. The charges followed an investigation that began in October 2006. Both faced accusations of operating an illegal marketing scheme in violation of state law.
Mannatech settled the civil complaint on February 26, 2009. The company agreed to pay $4 million in restitution to clients who purchased products. An additional $2 million went to the state to cover its costs in the case. Sam Caster personally agreed to pay a $1 million civil penalty.
Regulatory action from the Texas Attorney General was not new to Castor. His first two major business ventures had previously drawn official scrutiny. Eagle Shield, an insulation product, claimed to use new technology developed by NASA. It promised to reduce heating and cooling costs by up to 40%.
The Texas Attorney General concluded the product's technology long predated NASA. The product also failed to reduce consumers' bills by the advertised amounts. Castor's second product, the "Electrocat," was sold as a pest control device. It reportedly emitted pulsed vibrations to repel various pests, including rats, crickets, snakes, and scorpions.
An investigation by the Texas Attorney General in January 1991 found the Electrocat emitted no vibrations whatsoever. The Attorney General declared, "The device is a hoax, and stands on the same scientific footing as a perpetual motion machine."