Herbalife under FBI investigation; shares tumble

Los Angeles Times ^ | April 11, 2014, 3:15 p.m. | Walter Hamilton and Richard Serrano

[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. …

[Salvation]

In Amway — people below the top person can make more money! That might be the difference.

[shibumi]

This article more recently (by a year) casts the bet in a different light -

"ACKMAN STICKING WITH SHORT POSITION

" Ackman also said he was sticking by his $1 billion bet short selling Herbalife's stock which he made public a year ago and which has cost his $12 billion Pershing Square Capital Management as much as $700 million in losses, people familiar with the fund have estimated."

[ninonitti]

http://www.bostonglobe.com/news/politics/2014/03/17/gop-challenger-files-senate-ethics-complaint-against-markey-over-herbalife-probe/BAUv77y1PA888A1GtJDFQP/story.html

Ackerman’s press flack happens to have also worked for Markey

[shibumi]

"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."

AHA! Looking behind the man we find his wife:

"He married Karen Ann Herskovitz, a landscape architect, on July 10, 1994.[43] She is a trustee of Human Rights Watch..."

And who is behind "Human Rights Watch?"

"The George Soros Open Society Foundation is the primary donor of the Human Rights Watch, contributing $100 million of $128 million of contributions and grants received by the HRW in the 2011 financial year"

Looks like you hit that one out of the park, Balding Eagle.

[yldstrk]

It’s about damn time

[q_an_a]

yea, when they finish they can go to Mary Kay, Avon, and Tupperware to name a few other programs like herbalife.

[ModelBreaker]

they must have polled HL distributors and found out they are disproportionately conservative.

[Patriot Babe]

Those Sales Agent that Herbalife was recruiting were Spanish speaking poor Mexicans. Being promised riches if they sign on to Herbalife as distributors.

[goldstategop]

MLMs are different from Ponzi scams in that they do offer real products/services for sale. Its not really a viable business model though because you have to recruit a lot of people beneath you to make any money and 99% percent of MLMers never make any money.

For most people, direct sales is a far better fit for them.

[struggle]

Thanks Bill Ackman, for ruining the livelihood of thousands of people just because you’ve been unsuccessfully trying to short their stock for years.

[stylin19a]

Herbalife can't stay off somebody’s radar. they've been taking hits since Christ was a corporal.

[GAFreedom]

GOOD. I have no patience for Herbalife. These medical woo-meisters market crap that's totally ineffective and not proven to do squat. Worse, they're a multi-level marketing scheme, just like Amway. I hope they get driven out of business. I can't stand scammers.

[GAFreedom]

yea, when they finish they can go to Mary Kay, Avon, and Tupperware to name a few other programs like herbalife.

Yeah, I'd have no problem with that.

[q_an_a]

forget it - selling via this system of building others has been around for 60 + years and a heck of a lot of good products have been sold by wives who want “part time” work while caring for kids. They bring in money save others time and pay bills too. Win Win to me