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Herbalife under FBI investigation; shares tumble
Los Angeles Times ^ | April 11, 2014, 3:15 p.m. | Walter Hamilton and Richard Serrano

Posted on 04/12/2014 4:51:28 PM PDT by Olog-hai

Shares of Herbalife Ltd. suffered their biggest loss in more than a year Friday following a report that criminal authorities are investigating the Los Angeles nutritional products company.

The FBI has launched a criminal investigation of Herbalife and its web of independent distributors, a federal law enforcement source told The Times.

A federal law enforcement official in New York confirmed Friday that the FBI had opened an inquiry into Herbalife but did not know first-hand the extent of the investigation. “I can’t give any guidance on where it’s headed,” the official said. …

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Crime/Corruption; News/Current Events; US: California
KEYWORDS: fbi; herbalife; losangeles; pyramidscheme
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1 posted on 04/12/2014 4:51:28 PM PDT by Olog-hai
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To: Olog-hai

Guess they didn’t make a big enough payment to the DNC coffers.


2 posted on 04/12/2014 4:52:11 PM PDT by dfwgator
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To: dfwgator
"Herbalife has not been accused of wrongdoing and the latest investigation may not lead to charges, according to the report by the Financial Times."

Amway fought and won this 40 some years ago.

The wookie apparently farted too much after using something natural from Herbalife

3 posted on 04/12/2014 4:58:43 PM PDT by knarf (I say things that are true .. I have no proof .. but they're true.)
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To: knarf

Is it really a “criminal investigation” when there are no accusations of wrongdoing? Wouldn’t that be harassment instead?


4 posted on 04/12/2014 5:00:54 PM PDT by Olog-hai
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To: Olog-hai

I recently read something about this. The government is attacking Herbalife in order to manipulate the value of the company so that some big shot statist can make a boatload of money shortselling it. I’ll see if I can find it somewhere.


5 posted on 04/12/2014 5:01:14 PM PDT by BADROTOFINGER (Life sucks. Get a helmet.)
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To: Olog-hai

The entire report is boojit ... there’s no criminality and no expectation of anything coming of it ... but someone felt it neccesary to publish it


6 posted on 04/12/2014 5:03:12 PM PDT by knarf (I say things that are true .. I have no proof .. but they're true.)
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To: BADROTOFINGER

I think this is the guy, but I am not sure. Instead of having read something, perhaps it was a TV news segment.

http://www.bloomberg.com/news/2012-12-31/herbalife-rises-after-ackman-short-selling-spurs-buying.html


7 posted on 04/12/2014 5:03:21 PM PDT by BADROTOFINGER (Life sucks. Get a helmet.)
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To: Olog-hai
Ackman accused Herbalife more than a year ago of running a pyramid scheme in which salespeople make more money recruiting new sales agents than selling products. Only those at the top of the company make money, while more than 90% of distributors earn nothing or even lose money, Ackman said.

Pretty much true of every MLM company.

8 posted on 04/12/2014 5:11:40 PM PDT by iowamark (I must study politics and war that my sons may have liberty to study mathematics and philosophy)
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To: knarf

If they aren’t accused, what is the basis for the investigation? Revenge?


9 posted on 04/12/2014 5:23:38 PM PDT by ImJustAnotherOkie (zerogottago)
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To: ImJustAnotherOkie

Isn’t the owner conservative?


10 posted on 04/12/2014 5:30:35 PM PDT by RushIsMyTeddyBear (Great vid by ShorelineMike! http://www.youtube.com/watch?v=KOZjJk6nbD4&feature=plcp)
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To: ImJustAnotherOkie

some milloniare shorted the stock and is bashing big time.


11 posted on 04/12/2014 5:31:20 PM PDT by Rodm
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To: RushIsMyTeddyBear

Well, it’s a successful business without any Federal or State subsidies. I’d be surprised if he (or she) wasn’t. . .


12 posted on 04/12/2014 5:36:53 PM PDT by Salgak (http://catalogoftehburningstoopid.blogspot.com 100% all-natural snark !)
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To: BADROTOFINGER

Ackman is working both sides of the street, short selling the stock and at the same time pushing the investigation with the Feds to make his short position viable.

Unethical at best and at worst criminal. But that’s just my opinion.

http://uk.reuters.com/article/2013/12/23/hedgefunds-ackman-idUKL2N0K214S20131223?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews


13 posted on 04/12/2014 5:48:37 PM PDT by shibumi (Cover it with gas and set it on fire.)
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To: Rodm

See post #13.

If he doesn’t succeed in driving the price down, he’s lost $700MM of other people’s money.


14 posted on 04/12/2014 5:49:58 PM PDT by shibumi (Cover it with gas and set it on fire.)
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To: BADROTOFINGER

He made a bet against them. But, any ‘profit’ he will make on the short he will donate to charity. Mr. Ackman just hates the idea of a non .gov pyramid scheme.


15 posted on 04/12/2014 5:52:14 PM PDT by Theoria (End Socialism : No more GOP and Dem candidates)
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To: Theoria
"But, any ‘profit’ he will make on the short he will donate to charity"

The article I linked in #13 says that the $700MM short sale came out of the hedge fund he manages and that the fund is taking the hit while the price stays high.

16 posted on 04/12/2014 6:04:46 PM PDT by shibumi (Cover it with gas and set it on fire.)
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To: shibumi
Bill Ackman's Crusade to Crush Herbalife

'Any money he makes on this bet will go to charity, with $25 million slated for Sohn regardless of how it turns out.

'Why not make a ton of money and use just some of it for a good cause, as Ackman normally does? Because profiting from Herbalife’s alleged exploitation of its distributors feels like “blood money,” Ackman said. His goal: to let the Federal Trade Commission take this research and shut the company down. '

17 posted on 04/12/2014 6:10:12 PM PDT by Theoria (End Socialism : No more GOP and Dem candidates)
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To: Olog-hai

Were they selling stevia?


18 posted on 04/12/2014 6:12:12 PM PDT by drunknsage
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To: Olog-hai

Herbalifes big, big mistake was advertising on Rush and (I think) Hannity.

This is targeted payback, and a message to other companies.

It’s none of the other stuff people are speculating on.


19 posted on 04/12/2014 6:12:31 PM PDT by Balding_Eagle (Want to keep your doctor? Remove your Democrat Senator.)
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To: knarf

Amway bump.....but Herbalife might be set up differently. I don’t know.


20 posted on 04/12/2014 6:16:35 PM PDT by Salvation ("With God all things are possible." Matthew 19:26)
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