Here’s what an analyst at Goldman Sachs had to say about the company after the resignation was announced:
Following last week’s damaging report by Fraud Discovery Institute and Barry Minkow that Herbalife LTD’s (NYSE:HLF) president and COO Gregory Probert lied about his credentials, Probert has resigned from the company, effective today.
Media reports are cute. Instead of saying he lied, they say he “exaggerated.” Bloomberg gets it right… they say he faked his degree.
Something tells me that Herbalife’s auditors threatened to resign unless Probert resigned. This doesn’t change the fact that the company is selling a fraudulent “opportunity” to the people it recruits into its pyramid scheme, but it is a nice acknowledgment that company executives have been unethical.
Another top executive is caught lying about his credentials, but we’re supposed to think it’s no big deal. First it was Usana Health Sciences (NASDAQ:USNA) board member Denis Waitley lying about his college degrees. Then it was Usana CFO Gil Fuller lying about being a CPA. Then it was Usana exeuctive Timothy Wood lying about his college degree.
Now it’s the Herbalife (NYSE:HLF) president, Gregory Probert, lying about having an MBA from Cal State. But in typical multi-level marketing company (product-based pyramid scheme) fashion, you are urged to “pay no attention to the man behind the curtain,” in Wizard of Oz fashion.
As reported in today’s Wall Street Journal, the MBA degree was listed in at least 19 Securities and Exchange Commission filings. Probert’s excuse? Vanity. (No, we call that fraud, not vanity.) According to the article: