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Thread: Herbalife Investigation... but What About All the Other MLMs?

  1. #1
    JustTooMuchTime is offline Senior Scambuster
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    Herbalife Investigation... but What About All the Other MLMs?

    "The FTC is responding to mounting charges and evidence presented by Wall Street firms, business media, class action lawsuits and consumer and Hispanic organizations that Herbalife is not a legitimate sales business but an
    illegal pyramid scheme.

    Enough evidence has already emerged to dispel the myth that "MLM" is a modern form of "direct selling." Some MLMs actively discourage selling. Instead, they tell the recruits to "be their own customer" or just "buy from yourself and then find others to do the same." How do you make money buying from yourself? And if "finding others to do the same" means making money from recruiting, isn't that the perfect definition of a pyramid scheme? It is indeed difficult, if not impossible, to find a single individual that actually makes a sustainable profit from just selling MLM products. But MLM recruiters are everywhere!"
    Full story:

    http://campaign.r20.constantcontact....2-d4ae528eb27b

  2. #2
    path2prosperity's Avatar
    path2prosperity is offline Elite Scambuster
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    Re: Herbalife Investigation... but What About All the Other MLMs?

    Quote Originally Posted by JustTooMuchTime View Post
    That is the best online money making news that I have heard in several years. I quote what I consider to be the best bit from that article.

    QUOTE

    "The investigation announcement marks the first FTC public investigation of a major MLM since 1975! Something new is definitely occurring. As Herbalife goes, so might the entire MLM industry."

    Three cheers! Bye bye DrBob and the rest of the rest of the crew.

  3. #3
    scratchycat's Avatar
    scratchycat is offline Elite Scambuster
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    Re: Herbalife Investigation... but What About All the Other MLMs?

    Herbalife: Stocks Plunge, Ackman Says It is Enron-Like Fraud | ASDUpdates.com

    Thanks for keeping us informed about Herbalife.

    July 21 (Bloomberg) — Herbalife shares fell the most in three months after Pershing Square Capital founder and CEO Bill Ackman vowed to show Enron-like fraud at the seller of supplements and weight-loss shakes. Mr. Ackman spoke on “Bottom Line.” (Source: Bloomberg)
    Herbalife Ltd. (HLF) shares fell the most in three months yesterday after billionaire Bill Ackman vowed to show Enron Corp.-like fraud at the seller of supplements and weight-loss shakes.

    Ackman, head of Pershing Square Capital Management LP, said on Bloomberg Television that his firm has devoted $50 million of investors’ money to prove that Herbalife is a pyramid scheme. The results of the undercover investigation, which focuses on Herbalife’s nutrition clubs, will be released at a presentation today in New York.

    “Trust me, when you see the stuff we have,” Ackman said in an interview on “Market Makers” with Stephanie Ruhle and Erik Schatzker, “you will conclude the money was well spent.” He suggested that the nutrition clubs — part of Herbalife’s direct-selling approach — resemble the fake trading rooms set up by Enron before accounting fraud led to that company’s bankruptcy in 2001.

    Ackman has waged a battle to shut down Los Angeles-based Herbalife since December 2012. He has bet $1 billion against the company, saying it misleads distributors, misrepresents sales figures and sells a commodity product at inflated prices. U.S. regulators and law enforcement also are investigating allegations that the business is a pyramid scheme.

    Stock Decline

    Herbalife’s stock fell 11 percent to $54.02 yesterday, marking the biggest decline since April 11. The shares have tumbled 31 percent this year. Herbalife shares traded at the equivalent of $54.01 at 10 a.m. in Frankfurt in trading of 573 shares.

    Today’s presentation, which will be webcast starting at 10 a.m., will give new information to back up Pershing Square’s claims, the hedge fund said in a separate statement.

    “An in-depth analysis and examination of these clubs — which Herbalife claims are simply social gatherings that bring people together to focus on good nutrition and exercise — reveal that they are a core driver of Herbalife’s pyramid scheme,” Pershing Square said.

    Herbalife responded to the statements yesterday on Twitter, saying it was confident in the integrity of the company and that “the truth will prevail.”

    “Ackman’s theatrics are increasingly desperate,” the company said through its HerbalifeTruth account. Herbalife “is proud of role that nutrition clubs play in helping people lose weight and stay healthy.”

    Ackman said on Bloomberg Television that his firm will turn over its findings to regulators.

    “Our goal was to catalyze regulatory interest in the company,” Ackman said. “We spent the last year with undercover investigators in multiple countries and in the United States participating and trying to figure out — and ultimately figuring out — how nutrition clubs work and we have hundreds of hours of recorded conversations.”

    An employee stacks boxes of products for orders at the Herbalife Ltd. Los Angeles… Read More

    To contact the reporter on this story: Duane D. Stanford in Atlanta at dstanford2@bloomberg.net

    To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net Ben Livesey, Thomas Mulier

    NOTE: Our thanks to PatrickPretty.com for letting us know about this new story!
    Don't get ripped off!! Stay informed!

  4. #4
    Blue Wolf's Avatar
    Blue Wolf is offline Senior Member
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    Re: Herbalife Investigation... but What About All the Other MLMs?

    When it comes to Herbalife, the stock market seems to be bipolar . . . down in the morning, and euphoric in the afternoon.

    Bill Ackman's Herbalife presentation falls flat, shares up 25% - Business - CBC News

    Billionaire hedge fund manager Bill Ackman's latest claims that dietary supplement company Herbalife is an elaborate fraud failed to convince investors Tuesday, who pushed shares in the company up more than 25 per cent.

    Ackman, who runs New York hedge fund Pershing Square Capital, has been publicly attacking Herbalife for more than a year, saying the company's entire business model is an elaborate pyramid scheme that makes all its money from recruiting new salespeople for its products, not the sales of those diet products themselves.

    Herbalife has repeatedly and vigorously denied Ackman's claims.

    On Monday, Ackman announced he would make what he called "the most important presentation" of his career on Tuesday, the mere suggestion of which pushed Herbalife shares down 10 per cent with dread over what he would reveal.

    But when Ackman tipped his hand to his smoking gun on Tuesday, investor reaction was underwhelming. The shares opened slightly lower on Tuesday, before marching steadily through the day.

    When the trading dust settled, Herbalife shares gained more than $13 or 25 per cent to trade at $67.77 on the NYSE. That's higher than they were before Ackman announced he would have a presentation on Monday.

  5. #5
    JustTooMuchTime is offline Senior Scambuster
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    The Most Important Post of My Career (The Salty Droid)

    "Club 100 was first brought to my attention {last September} by the talented and perceptive Ms. Christine Richard … who co-presented with Mr. Ackman at Tuesday’s event. Christine and I have been regularly discussing the scams of scamming scammers for the past two years. She’s the best researcher I’ve ever met :: which is why she had to escape from her previous life as a financial journalist … where research is strictly forbidden."
    "My next post will detail Club 100 … SaltyDroid style. It will be the most important post of my career.

    … except :: not really … cause that’s a stupid thing to say. No one act :: no one step … can be all that important in the fight against scamworld monsters. Because Scamworld is a ginormous and twisted place … where progress is all but impossible.

    Our only hope is baby steps … and overly optimistic relentlessness."
    Full post:

    The Salty Droid – The Most Important Post of My Career

  6. #6
    kschang is offline Senior Scambuster
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    Re: Herbalife Investigation... but What About All the Other MLMs?

    I have the utmost respect for Salty, but he seemed to have a falling out with Michelle Celarier over at NYPost, who covers MLMs and whatnot, and has a lot of scoop on Herbalife. Salty even dedicated one full post for her, titled Doxing of Celarier.
    ---
    A MLM Skeptic (not a Cynic) covering scams, critical thinking, and psychology
    http://amlmskeptic.blogspot.com

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