Tuesday, 17 November 2015

Soros exits the pernicious 'Herbalife (HLF)/MLM' fairy story


Today it was announced that the Soros Fund (which is no longer controlled by George Soros) has dumped 2 millions 'Herbalife' shares. However the person who was apparently responsible for initially making this amoral investment, no longer works for the Soros Fund.

More than 2 years ago I published an in-depth analysis of how, and why, the name of George Soros had appeared in the pernicious 'Herbalife/MLM' fairy story.



See original image

At the beginning of August 2013, it was reported that the Soros Hedge Fund had bought a large stake in 'Herbalife,' causing shares in the counterfeit 'direct selling' company immediately to jump 9%; for it was also implied that the messianic billionaire, George Soros, had personally been responsible for making this trade.

The temporary re-inflation of the market price of 'Herbalife' shares, meant that (on paper) Bill Ackman was around $300 millions down on his $1.2 billion short-selling bet that 'Herbalife' is a fake enterprise which will soon be closed down, whilst (again on paper) Carl Icahn and the Soros Hedge Fund, were hundreds of millions of dollars up on their own long bet against Bill Ackman's short position.

See original image
Paul Sohn

The person who was largely-responsible not only for the Soros Hedge Fund buying a significant chunk of 'Herbalife' shares, but also for making sure that the rest of the world knew about it, is Wall St. whiz -kid, Paul Sohn. He is reported as boasting to a gathering of fellow Wall St. whiz kids (whom, for obvious reasons, he wanted to pile in on the 'Herbalife' deal) that :

'George Soros broke the Bank of England..! He can break the back of Bill Ackman!'

Not surprisingly, Mr. Sohn's reckless behaviour surrounding his 'Herbalife' trade, immediately became the subject of an insider trading complaint filed by Bill Ackman, with the US Securities and Exchange Commission.

Dr. William Keep
Dr. William Keep, Dean of the College of New Jersey

Furthermore, specialist economist, Dr. William Keep, informed me that Paul Sohn was definitiely advised by him that Bill Ackman's analysis is essentially-correct, albeit somewhat naive, in that 'Herbalife' has indeed, been hiding a pyramid scheme, but that, in his (William Keep's) informed-opinion, given the previous track record of US regulators/legislators, the odds on 'Herbalife' being urgently investigated by FTC officials, prosecuted and closed-down as a fraud, were remote. Thus, as I have previously stated on this Blog, Wall St. investors knowingly bought shares in a highly-organized form of theft, and presumably they also took legal-advice as to their own potential liability before they did so. However, I would contend that any short-sighted, amoral advice, and/or opinion, which failed to persuade Wall St. investors that it was not safe to acquire large blocks of 'Herbalife' shares, was itself fatally-flawed, because whomsoever offered it, was evidently unqualified to identify the wider, ongoing, criminogenic phenomenon which has been lurking behind the pernicious fairy story entitled 'MLM Income Opportunity.' 



With a level of hypocrisy (and irony) that is close to exquisite, in public, young Mr. Sohn and his wife, Sarah, have professed to being enthusiastic supporters of 'LIFT' - a charity which 'aims to combat poverty and expand opportunity for all people in the USA.' 

In private, young Mr. Sohn seems to have become so bedazzled by an opportunity to make quick and easy money, that he has completely failed to apply his professed-morality, let alone commercial common-sense, to his deeds; for there is absolutely no doubt that 'Herbalife' has been part of an ongoing financial, and psychological, holocaust (with a small 'h') which has secretly consumed countless millions of vulnerable individuals by brainwashing them into believing that 'Multi-Level Marketing' is a viable, and legitimate, 'business opportunity,' in which failure to make money, is always entirely the fault of the participants never the sponsors. Sadly, whether he cares to face reality or not, Paul Sohn risked a large quantity of other people's money, supporting an effectively-valueless, and demonstrably-criminal, enterprise dressed up as a 'business.'

David Brear (copyright 2015)

No comments:

Post a Comment