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As the battle heats up between Herbalife (HLF +3.8%) and hedge fund short sell Bill Ackman, the...

As the battle heats up between Herbalife (HLF +3.8%) and hedge fund short sell Bill Ackman, the SEC's enforcement division has opened an inquiry into the company, being led by enforcement officials in the SEC's New York office. The inquiry comes on the back of earlier scrutiny of its financial disclosures by the regulator's corporation finance division last year, and just a day before its meeting with investors to rebut the accusations that the direct seller is a ponzi scheme.
Comments (13)
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    Curious timing
    9 Jan 2013, 04:03 PM Reply Like
  • Noquiche
    , contributor
    Comments (197) | Send Message
     
    yep curious...just like CNBC's HLF video day before...Wonder who went to the SEC? HLF or Ackman
    9 Jan 2013, 04:13 PM Reply Like
  • Sennin
    , contributor
    Comments (41) | Send Message
     
    Ackman's ace in the hole. I bet he already had everything set up with the SEC and agreed that if he paid for the upfront investigation that they would close with their own, taking advantage of all of the legwork he did on his own dime. Nicely done!
    9 Jan 2013, 04:27 PM Reply Like
  • Noquiche
    , contributor
    Comments (197) | Send Message
     
    Are you certain that the SEC is not working with David Bois and HLF? Because from what I read the SEC said "no comment".
    9 Jan 2013, 04:34 PM Reply Like
  • davidbdc
    , contributor
    Comments (3149) | Send Message
     
    Anyone else tired of hearing about Herbalife?

     

    Basically, it sounds like they pull in a bunch of suckers to sell their products at stupid high prices. There ARE a bunch of consumers that like their products but can get them at half of what new distributors are trying to sell them for.

     

    Bunch of stupid people buying/selling stupid products. Enough already.
    9 Jan 2013, 04:38 PM Reply Like
  • C Michael Croston
    , contributor
    Comments (194) | Send Message
     
    Ya! Sounds like Starbucks business model...
    9 Jan 2013, 04:45 PM Reply Like
  • Weblands
    , contributor
    Comments (5) | Send Message
     
    No. I love hearing about HBL. Always like to see a big guy hit the deck and if anybody deserves it these sleeze balls do.
    10 Jan 2013, 09:25 AM Reply Like
  • Dr. Terry Allen
    , contributor
    Comments (218) | Send Message
     
    I must disagree with the article. There is a huge difference between a Ponzi scheme and a pyramid operation (the rules are fuzzy here, but not for the Ponzi).
    9 Jan 2013, 04:47 PM Reply Like
  • Johnt7777
    , contributor
    Comments (4) | Send Message
     
    How can anyone get ponzi mixed up with pyramid?, one is totally deceptive, while the other is right up front with duplicate effort, so whers the crime ? havnt seen any evidence at all, mabe circumstances for slander though, slander, lible,illegal market manipulation,possibly also lying to law enforcement to manipulate a crime , fradulent statements with intent to defraud shareholders,, im almost dizzy thinking how many crimes may have been commited here, giveing the profit to charity,, really ?? so where are the records going to be for that one ? if everything is done here with justice this thing could take 3 years in court. anyone know of a good lawfirm to invest in ? Im am sure of one thing here , someone is going to make a fortune here ,I just cant see who yet,
    10 Jan 2013, 01:32 AM Reply Like
  • ksu
    , contributor
    Comments (63) | Send Message
     
    Did SEC also inquire Ackman? Why so many "put" contract before he went on public?
    10 Jan 2013, 02:03 AM Reply Like
  • Herbascum
    , contributor
    Comments (109) | Send Message
     
    You can call Herbalife what ever you want, but they are hurting thousands of households. Selling false dreams!
    10 Jan 2013, 02:17 AM Reply Like
  • Herbascum
    , contributor
    Comments (109) | Send Message
     
    Shut them down!
    10 Jan 2013, 02:17 AM Reply Like
  • Weblands
    , contributor
    Comments (5) | Send Message
     
    Of course HBL is based on a pyramid scheme. But so is Capitalism. 1-2% make some big money. 99% of the bumpkins spin their wheels and lose their money. HBL CEO, Wild Mike Johnson, pulled in a cool $89 Million.

     

    That's America. Everybody knows it's a pyramid but they all want in on the deal hoping that they can hit a longshot.
    10 Jan 2013, 02:42 AM Reply Like
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