December 9, 2014
Florida Attorney General
PO Box 10069
Tallahassee, FL 32302
Re: Floridians Need Your Help!
Dear Madam Attorney General,
As I write to you today, I feel as though I am speaking with three voices in mind; my voice as a proud Floridian, my findings as a financial detective, and especially my responsibility as a professional fiduciary. In short, Ms. Bondi, I feel compelled to reach out to you as I understand you are in an ideal position to affect positive change in our community.
As a fellow Florida Gator who was brought up in the Sunshine state, I'm sure we have many friends in common-especially considering our involvement in the Greek community on campus (I'm a Phi Delt). But, I write to you today not regarding a mutual friend; but a mutual enemy. That enemy is a predatory and fraudulent enterprise masquerading around as a "global nutrition" company. This company is known as Herbalife (NYSE:HLF).
Mounting evidence points to the fact that HLF is running what is most likely the largest pyramid scheme in the history of mankind. I understand that the claims that I (and others), have brought against Herbalife are strong-but the evidence we have gathered is stronger. My objective is to share that evidence with you as soon as possible so that we can put a stop to this evil. The information that I am ready to provide to you will show how Herbalife is in fact an illegal pyramid scheme while using shady business practices such as:
- False and misleading claims
- Stock price manipulation
- Misinformation campaign
If you are already aware of this situation, then I sincerely congratulate you and your team on being ahead of the curve. I also apologize for any wasted time. But to my knowledge, only a handful of attorneys general have formally announced inquiries related to Herbalife's fraudulent business practices.
Because I know what it's like to be "drinking from a fire hose," I tried my best to refrain from flooding you with the volumes of material that I can (and will) easily provide to you at your request (we'll be happy to cover the costs). I believe the best course of action would be for us to meet in person and discuss the facts further. In full disclosure, the partnership(s) I manage for my friends and family have invested in put contracts related to Herbalife stock. That said, I have decided to personally donate 100% of my share of any potential profits earned from our investments in HLF. This is not about money-this is about doing what's right and protecting our community. Ms. Bondi, this is about justice.
In summary, I would like to present to you and your team, mounting evidence that Herbalife is in fact a fraudulent pyramid scheme that is preying on lower-income households in our great state. Their current focus is on our growing Latino population. Although Herbalife claims to offer the "American Dream" by selling "nutritional" products, what they really offer is false hope while selling a generic but overpriced commodity. The facts speak for themselves:
- 99% of Herbalife distributors earn LESS than the Minimum Wage.
- At least six government agencies are currently investigating the company (including two other state attorney generals).
- You have been entrusted by the people of the State of Florida, with the power, as well as the responsibility to stop this evil before more innocent Floridians get hurt.
I look forward to meeting you in person. Please contact me to schedule a meeting at your earliest convenience. Because I know how difficult it is to follow up immediately, either I, or someone from my office will contact you so that we can make progress.
Vijay J. Marolia
Floridian | Florida Gator | Fiduciary
cc: Rick Scott, Florida Governor
Bill Nelson, Senior Senator
Marco Rubio, Junior Senator
John Mica, Congressman
Bill Posey, Congressman
Alan Grayson, Congressman
Daniel Webster, Congressman
Disclosure: The author is short HLF.
The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: short exposure via put options