'We are confident our China operations are in compliance with the applicable ("direct selling") regulations as interpreted and enforced by the government of China. Nu Skin has an eight-year history of doing business inChina under these regulations. Our business modelin China is different than the global business model. We follow all regulations and any member who does not follow company policies issubject to discipline.'
It is interesting to note that, in the above statement, the 'Nu Skin' bosses don't actually claim to be in compliance with Chinese criminal laws prohibiting fraud and corruption. On the contrary, they steadfastly pretend only to be in compliance with current, unnamed, senior Chinese government members' and officials' interpretation of technical regulations which define lawful direct selling and which (apparently) the 'Nu Skin' bosses, and other US-based 'MLM income opportunity' racketeers, had a hand in drafting. Classically of 'MLM' racketeers, the 'Nu Skin' bosses are also steadfastly pretending that they are completely unaware of any regulations having been broken in China, but if they have been broken, 'Nu Skin' itself is not responsible, whilst the company will punish the individual adherents who are.
The financial institution which (apparently, in complete ignorance of reality) handled part of the unlawful flotation of the 'Nu Skin MLM income opportunity' racket on the New York Stock Exchange, is Deutsche Bank Securities USA.
For obvious reasons, Bill Schmitz (Managing Director of Deutsche Bank Securities USA) felt obliged to take part in the CNBC debate in defence of his de facto criminal associates. However, some of the statements which this grinning, young fellow made (apparently, still in complete denial of reality), were the equivalent of admitting that US-based 'MLM income opportunity' racketeers have conspired to subvert the rule of law in China.
At one point Schmitz foolishly-boasted:
'They (the bosses of "Nu Skin") wrote the law in China. The chairman and CEO was there when the World Federation (of "Direct Selling Associations") satdown with the Chinese Government and scripted the law.'
The latest warnings to existing 'Nu Skin' shareholders, and to potential buyers of 'Nu Skin' shares, by Citron Research, are contained in this document:
David Brear (copyright 2012)