According to the November 5, 2007, Herbalife (NYSE:HLF) response to the Fraud Discovery Institute (FDI) report, the company states: “We have confidence in our direct-selling business model, our integrity and transparency as a NYSE-listed company and the fundamentals of our business.”
Asks FDI’s Barry Minkow, “Have Herbalife forgotten the imputed credibility of being on the New York Stock Exchange lost its value when another, well-known NYSE company failed – specifically, Enron? There was not one word about the 24-page expert analysis of the Herbalife that challenges the very core and foundation of its business fundamentals and business model. Continue reading
Multi-level marketing company Herbalife has denied the allegations made in Barry Minkow’s report about their fraud in China with this press release:
We have confidence in our direct-selling business model, our integrity and transparency as a NYSE-listed company and the fundamentals of our business. With regard to our business in the People’s Republic of China, the Chinese government thoroughly reviewed our company, our global operating model and our specific operating plan in China as part of the licensing process. We received our first direct-selling license in China in March 2007 and subsequently received an expanded license in July 2007, which further validated the legitimacy of our operating plan in China. We believe our China marketing plan is compliant with all applicable laws, as are our marketing plans and business practices worldwide. Continue reading
A falling stock price is good! Allegations of fraud are good! Why? “When these business models are doubted, returns tend to be the greatest.” That’s a quote from an analyst. Fraud in China by Herbalife (NYSE:HLF) apparently equals “doubt about the business model” to him.
Here are his statements as reported by the Associated Press: Continue reading
The Fraud Discovery Institute (FDI) has just released a report corroborated by video and audio evidence indicating that Herbalife LTD (NYSE:HLF), a multi level marketing company based in Los Angeles, California, has been operating an underground multi level marketing business in China where they are only licensed to “direct sell” products. The investigation also demonstrates that the problem of recruitment in China extends to Herbalife distributor down lines in countries outside of China which taints company earnings.
“China, after much research, concluded in November of 2005 that multi level marketing would be banned in the country,” said Barry Minkow, founder of the Fraud Discovery Institute. “However, as one Herbalife employee in China stated during a taped, in-person meeting, ‘No company will make money if they perform business in accordance with the Chinese laws.’ No truer statement has ever been uttered,” said FDI’s Barry Minkow. Continue reading
Multi-level marketing company Herbalife (NYSE:HLF) is the target of the most recent investigation done by Barry Minkow and Fraud Discovery Institute. A new website, Doomed By Design has been developed, and a written report has been released. A short video clip is included, and a full documentary will be released later this year.
Herbalife is the world’s largest multi-level marketing (MLM) company. Barry Minkow and team found that the company is illegally doing business in China. Chinese laws prohibit multi-level marketing businesses from existing in China, and do not even permit their products in the country. Continue reading
Milwaukee, WI November 22, 2006 . Pyramid Scheme Alert announces that Tracy L. Coenen, CPA, MBA, CFE has been named to the organization.s Board of Advisors. Her consumer education website, PinkTruth.com, which exposes and analyzes the business and recruiting practices of Mary Kay and the plight of Mary Kay salespeople, has received over 4,000 visitors a day.
Pyramid Scheme Alert is one of the most widely recognized and highly respected organizations fighting against pyramid schemes and abusive multi-level marketing companies. The organization is led by Robert FitzPatrick, author of the book False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes. Continue reading