As has been recently reported on this Blog, the bosses of the 'Herbalife' racket have been bluffing and on December 20th, 2012, hedge fund manager, Bill Ackman, called their bluff by revealing his holding of a short-selling position involving around $1.2 billions of 'Herbalife' shares. However, at the same time, Bill Ackman laid on the table his own winning-hand by publishing a detailed analysis of why he considers the legally-registered corporate structure known as 'Herbalife' to be the front for a vast and damaging pyramid fraud and, therefore, effectively-valueless. He also declared that all the profits he will make from this tainted deal will be handed over to charity.
|'Herbalife' racketeer, Michael Johnson.
The laughable, but predictable, reaction of 'Herbalife' boss, Michael Johnson, was to continue his bluff- steadfastly pretending innocence whilst accusing Bill Ackman of cheating in order to make money. http://www.guardian.co.uk/world/2012/dec/21/herbalife-ceo-ponzi-scheme. Yet neither Michael Johnson, nor his previously-aggressive echelon of attorneys, have been able to refute Bill Ackman's published analysis of 'Herbalife' by providing quantifiable evidence which would prove that the alleged 'lawful Herbalife MLM income opportunity' has generated any significant, and sustainable, revenue other than that deriving unlawfully from a never-ending chain of millions of losing investors around the world. This is because, for decades, the bosses of the 'Herbalife' racket have been riding on the coat tails of the 'Amway' racketeers - operating a dissimulated closed-market swindle (right under the noses of regulators and financial journalists), in which they have been laundering billions of dollars of unlawful, losing investments based on the false expectation of future profits, by falsely-declaring these payments as lawful sales based on value and demand.
Yet if readers watch this video( of two young Reuters journalists discussing 'Herbalife' (in the light of Bill Ackman's irrefutable analysis), they will witness just how difficult it has become for casual observers to comprehend the extraordinary truth about 'MLM income opportunity' racketeering.