Does Xyngular Work? (Or Isagenix, or Herbalife, or Take Shape For Life, or Visalus, or Any Multi-Level Marketing Company)

Several months ago I wrote an article on the Xyngular weight loss program being pimped by Jennifer McKinney (aka mommy blogger MckMama).  The bottom line for me was that these programs do not work because: They create short-term weight loss through a dizzying cycle of starvation, unhealthy meal replacement shakes, …

Scott London’s Other Crime: Tax Fraud

Former KPMG audit Partner Scott I. London brought great shame to the accounting profession this week by being charged with conspiracy to commit securities fraud through insider trading. After nearly 30 years with KPMG, London went down in flames after being caught passing insider information on audit clients of the …

Is Multi-Level Marketing a Legitimate Business Method?

Defenders of multi-level marketing (MLM) are often heard saying that it’s a legitimate business method! Even government regulators say MLM is legitimate. And it is true that state and federal governments in the United States generally allow multi-level marketing companies to operate with little oversight. This is despite the fact …

Herbalife Under FTC Investigation? Or Not?

Today the New York Post reported that Herbalife (HLF) is under investigation by the Federal Trade Commission (FTC), and that has sent the stock price down more than 10%. The newspaper bases this story on a Freedom of Information request done by the newspaper. It says, regarding consumer complaints received …

Are Herbalife and FHTM Similar?

With yesterday’s shutdown of Fortune Hi Tech Marketing, consumers have been asking if Herbalife is a similar operation. Last year Herbalife’s business model was called into question by David Einhorn, and then the company was accused of being a pyramid scheme by Bill Ackman. Naturally, Herbalife denied being a pyramid …

Anne Coughlan is Wrong on Herbalife

At yesterday’s big Herbalife investor day, the company paraded around Anne T. Coughlan, a marketing professor at Northwestern University, who proudly proclaimed that Herbalife is not a pyramid scheme. No, it is a legitimate multi-level marketing company. In July, Coughlan published this paper on Herbalife, concluding that Herbalife is squeaky …

Herbalife Documentary by Herb Greenberg: Selling the American Dream

Herb Greenberg, a stocks commentator for CNBC did a ten-month investigation of multi-level marketing company Herbalife. Its conclusion is this 20 minute documentary, and the timing couldn’t be better. Herbalife has been accused of being a pyramid scheme again, this time by Bill Ackman of Pershing Square. Despite the fact …

More on Herbalife, Bill Ackman, and Law Enforcement

As we patiently wait for Herbalife’s “analyst and investor meeting” on January 10 to address the pyramid scheme allegations made by short seller Bill Ackman, there is plenty of good discussion of HLF around the world wide web. Kid Dynamite said Bill Ackman is wrong about Herbalife, citing that: HLF  …

If Herbalife Was a Pyramid Scheme, It Would Have Collapsed By Now

One of the most common arguments used against those who deem multi-level marketing companies pyramid schemes, is that pyramid schemes collapse. Because Herbalife hasn’t collapsed, it must not be a pyramid scheme. Because the company has avoided total collapse for more than 30 years, it can’t possibly be a pyramid …