Wednesday, 30 July 2014

'Herbalife (HLF)' company officers denied litigation insurance.

Today it has been reported that a company officer of 'Hartford Financial Services Group,' William Kelly Jnr., has lost his job for disclosing that he and his former employers have refused to sell litigation insurance to the company officers of 'Herbalife.'

Certain people at 'Hartford'  have evidently worked out that anyone deeply-involved with 'Herbalife' is an extremely bad risk, but any insurance company which has previously sold litigation insurance to any company officer(s) of any corporate structure peddling a so-called 'MLM income opportunity,' has quite obviously been misled.

An anonymous reader has asked me: What do I think this means?

Anonymous - First of all, the modern insurance industry has often been compared to bookmaking, because insurance companies have been able to offload their own risk through the buying of re-insurance. Independent bookmakers follow essentially the same procedure - laying off large bets that they have accepted, and which they judge they will probably have to pay out on, with other bookmakers.

To put this into context, imagine a gang of 'Mafia' wise-guys pretending to be innocent and respectable businessmen / philanthropists, trying to buy insurance against the risk that they might be charged with racketeering and put on trial. No well-informed, law-abiding insurance company, or underwriter, would voluntarily agree to sell litigation insurance to such a toxic gang, because the inevitable legal fees the final insurers would have to pay out, would far outweigh the price of any policy. 

In simple terms, the odds on 'Herbalife's' bosses getting sued/prosecuted, have shortened to the point where this eventuality has now become a racing-certainty. Thus, certain persons at the 'Hartford' insurance company (and its underwriters) have evidently looked hard at the evidence collected by 'Pershing Square Capital,' applied common-sense, and concluded that the corporate officers of 'Herbalife' have been committing fraud on an industrial scale and, therefore, they can be personally held to account by an almost unimaginable number of individual victims and government agencies around the world. Consequently, the bosses of the 'Herbalife' racket have been denied litigation insurance in the USA by 'Hartford,' and this key intelligence has managed to escape into the public domain. 

This means that 'Herbalife' has been recognized as toxic by responsible persons working in least one major (traditional) financial industry.

It also means that the bosses of 'Herbalife' and other 'MLM' racketeers have lied through their teeth to insurers for decades about the real nature of their criminal enterprise, in order to obtain litigation insurance.

Self-evidently, these shameful matters form yet another part of an overall pattern of ongoing, major, racketeering activity as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970.

David Brear (copyright 2014)


  1. People are starting to actually see that the Herbalife emperor has no clothes. It is too bad that many politicians look upon these fraudulent business as campaign contributions. Even states like Utah have shamelessly jumped on the MLM bandwagon. It must have been easy for Mitt Romney to accept their filthy lucre. City hall has sold out as these 'for sale' politicians infiltrate and grasp the controls of power. Might doesn't always make right. It isn't just a left wing right wing divide. Graft in the form of contribution is too easily accepted on both sides of the isle. I've noticed that even entities like the Supreme Court here in the U.S. seem to come down on the side of corporate leaders; they hold their nose and limit liability of those who need to be held accountable in courts of law.

    I applaud the high courts of India for seeing through the deceit of corporate fraud. I have my doubts as to they weather the storm that Amway lawyers bring their way. In the U.S. corporate fraud enjoys the status of legitimate business. Hebalife does not steal from the rich and give to the poor. They take from the poor and give to the rich. Rich Devos and his heirs are expert at playing this game. Like the mafia, they have supposedly gone legit and respectable. I am appalled by their charities and sponsorship of sport teams and athletes. They mask their own sins and many citizens here in the states view them as good public stewards. Old school mafia dons like Al Capone operated soup kitchens and other charities. Many people in Chicago at the time looked up Al as a benign protector of the poor. A modern day Robin Hood. They disregarded all the blood that was on Scarface's hands. I realize this comment may be 'way over the top' but it happens to be the way I feel on this matter.

    So insurance underwriters have the mentality of rats in abandoning a ship that is about to be scuttled. Not surprising; I'm glad to see it!

    1. quixtarisacult- The deeper all these 'MLM' cults have infiltrated traditional culture, the more difficult it has become to hold their leaders to account.

      The UK has recently been rocked by an extraordinary scandal involving a man, Jimmy Savile, who first became a national celebrity in the 1960s. He also appeared to be a philanthropist and a devout Catholic who counted senior politicians and members of the Royal family as his friends. Jimmy Savile was even awarded British, and Papal, Knighthoods for his charitable activities. When he died his obituries were universally positive.

      Within a year of Savile's death, a number of his victims began to come forward. It is now known that he was Britain's most prolific sexual abuser of children, who managed to silence many hundreds of his young victims by hiding in plain sight whilst convincing them that they had agreed to participate and that no one would believe them if they complained.

      Savile targeted kids who were already in trouble with authority. His celebrity status also gave him free-access kids in institutions and hospitals. He coerced them into doing what he wanted, by offering them cigarettes, trips in his Rolls Royce and introductions to pop stars, etc.

      The comarisons between the Jimmy Savile affair and 'MLM' cults are quite remarkable, because, in the end, although many people knew that Savile was a dangerous fake, no one dared to challenge him.

      The recent refusal of 'Hartford' to sell litigation insurance to 'Herbalife's' bosses, demonstrates that certain persons at 'Hartford' know damn-well that 'Herbalife/MLM' is a dangerous fake, and when you talk to regulators in private, they are of the same opinion.

    2. Utah has held the dubious title of 'scam capital of the world' for over ten years. Boiler rooms and MLM headquarters are clustered in Utah. Mark Shurtleff, the former AG of Utah has recently been arrested. Shurtleff never met a pyramid scheme he didn't love...and profit from. If there's any justice he'll spend a long time in prison.

    3. Thanks Babara - Amazingly, it's not just one former Utah AG who has been arrested for corruption, but two. Shurtleff's reality-inverting reaction to his arrest was classic of a Narcissistic personality - on release, he arrogantly faced the media with his wife and daughter beside him, and pretended that he was a completely innocent party being persecuted by evil political opponents.

      For a while, I've been saying that Americans who instigate, or facilitate, frauds which damage (financially and psychologically) significant numbers of their fellow citizens, should be charged under the US federal Racketeer Influenced and Corrupt Organizations Act, 1970.

      I've also clearly stated that the bosses of groups like 'Herbalife', 'Forever Living Products' 'NuSkin', 'Amway', etc., are not just racketeers, but traitors to the American Republic who have been inflicting psychological,and economic, warfare tactics on millions of their fellow citizens and on the citizens of America's allies.

      This means that, technically, 'MLM' racketeers and the criminal associates could be charged with treason under the US Constitution.

  2. David, Based upon your comment, I began digging info on the Jimmy Savile scandal. What I've been learning has blown my wig back. That is nearly beyond belief. If that were a fictional story, I would think that kind of thing just was impossible.

    Now here we are with other similar types of individuals--still alive--whose misdeeds whether criminal or ethical--are still operating their swindles, scams or otherwise illegal activities. When you consider that the information is out there already about their crimes: fraud, theft, intimidation, threats, and so forth; and nothing ever gets done. Is it unreasonable to surmise that, for whatever reason (celebrity, power, influence, wealth, social status) that although the correct authorities (prosecutors, courts, investigators, regulators, governmental tax agencies, social service agencies, governmental bureaus of investigation, police, CIA, Interpol) already have the goods in their hands, and nothing is ever done; can't we then assume that they have actually become aiders and abetters?

    My take, as uniformed as it may be, is that this is a scandal of the highest order. Heads should rol and those who knew and did nothing were just as guilty as Sir Jimmy. Your thoughts?

    1. quixtarisacult - We live in a sleazy world, but 'MLM' racketeers have infiltrated traditional culture to a point where most casual observers simply cannot accept the reality which lies behind the 'direct selling' fairy story. As with the Jimmy Savile affair, the mainstream media has been almost nowhere to be seen. To date, this has made the mainstream media a significant part of the 'MLM' problem, and not the solution to it, but this is classic.

      After the Jimmy Savile scandal broke, a number of other elderly celebrities were arrested in the UK and accused of historic sexual offences against youngsters. Amongst these, was Max Clifford a multi-millionaire 'publicist and philantropist.' He's recently, been jailed for raping, and sexually abusing, a number of under-age girls over a period spanning decades, but throughout his trial, Clifford insisted that he was completely innocent and telling the truth, whilst his accusers were all lying. At one point, Clifford (who exhibits the diagnostic criteria of a severe and infexible narcissist) even tried to ridicule a television reporter, broadcasting live outside of the courthouse.

      Prior to his disgrace and downfall, Clifford's 'business' comprised using his connections to prevent the mainstream media from publishing scandalous information about other famous people. However, this activity obviously enabled Clifford to gather compromising intelligence about the rich and famous. Clifford's client list included numerous British and international celebrities, all of whom had embarrassing skeletons rattling in their closets.

      In reality, Clifford was a sophisticated blackmailer and sexual predator, hiding in plain sight. Many people in Britain were terrified of him.

      Have a look on Youtube at how brave the mainstream British media suddenly became after Max Clifford was arrested and convicted. Prior to these events, Clifford had been effectively in control of the mainstream media in the UK. In exchange for large sums of cash, he could have 'positive' stories about his clients published or 'negative' stories buried.


  3. David,

    I have spent some time looking at info related to Max Clifford. I gather that he had once been a media darling as well (very much like Sir Jimmy). He walked amongst the media elite, and from what I’ve gathered was looked upon as the go to guy. I watched an interview he did before he was charged with crime. In the interview, he was saying that many of his clients were worried that their name would come up connected in some sexual parlance from the 60’s or 70’s. Clifford said that celebrities like rock musicians had so many sexual liaisons which they most likely wouldn’t remember, but very well could surface. He regarded his purpose to firmly keep their closets closed.

    In retrospect, he most likely was talking more about himself than any of his clients, although they surely have things to hide. I take it that Britain has no statute of limitations on the prosecution of old crime (at least on sex crimes or murder)? I’m surprised that Max hasn’t since ‘outed’ some of his former clients. I am still relatively uninformed on the matter. (Maybe he has, or maybe some still have a lot to fear from him.

    1. quixtarisacult - Various British celebrities have lately been charged with serious sex offences dating back several decades. Some of what Clifford said, prior to his arrest, was quite valid. In the 60s and 70s, many young male pop stars were indeed surrounded by drugs ,alcohol and young female fans in search of casual sex. As with Warren Beatty and various other Hollywood sex addicts, glamorous and randy British sports stars like Formula One world champion, James Hunt, and motor bike world champion, Barry Sheene, counted their female conquests by the thousand. Look at the difference between how these guys were treated by the media in the 1970s and how Tiger Woods was recently destroyed for behaving in exactly the same way.

      However, Clifford was no pin-up boy. He was charged with, and convicted of, sexual assaults against a string of under-age girls whom he tricked, and/or coerced, into satisfying his lust.

      Max Clifford is an enigma, in that he obviously wasn't particularly intelligent, but he seems to have worked out that if you know the ugly secrets of the rich, famous and powerful, you can also be rich, famous and powerful. Clifford ran a private intelligence gathering operation. A blackmailer hiding in plain sight. I suppose he could be compared to J. Edgar Hoover, except that Clifford's clients actually gave him their secrets - believing that he would then keep them out of the media.

      Every now and then, Clifford released scandalous stories to the media about persons (particularly, politicans) who were not on his client list. Clifford quite openly admitted that he elaborated scandals to make his targets seem even more absurd.