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That's what I made in my career.
So, how is that? increase expectations?
Man: Uh, what do we learn?
Ackman: you will learn why herbalife will collapse,
And that is a pretty strong statement,
But this is the biggest fraud in terms of scale, of the countries involved,
Danger for people...
Man: And now, we join the ceo from herbalife, michael johnson.
He has called.
Michael Johnson: First of all, guys,
This is not about herbalife business model.
This is about the billing statement business model.
It's blatant market manipulation
We are not a pyramid scheme. That is a false accusation.
This is a legitimate company.
We have been doing business for 32 years.
Millions of customers around the world.
Proposition of Mr. Ackman
That United States will be better when herbalife is gone...
United States will be better when the invoice is lost
Good. How are you?
Um, hour, clock back.
Do you want time, or do you want to calculate the time?
What do you mean?
-We have a speaker timer. -During the presentation yourself...
Just count up
-Count rises from zero? -Yes.
You understand Thank you sir.
Ackman: the company clearly panicked
They know what we have.
Male reporter: They say, pay, that's Herbalife continues to face it
An unprecedented attack
Support your billions of dollars bets
To manipulate and drive herbalife stock prices to zero.
Female reporter: Looks like all the walls of the road are against you
Man 2: Ackman is a liar.
You scare hell out of people, get the stock,
And tell the world How great he is.
Female reporter: Do you still believe this company is worth zero?
Ackman: yes
The company is a goose that puts a golden egg.
And believe me, I've never seen a goose take out so many golden eggs
- all my life
Narrator: For two years, hedging funds for the ckman bill
Has managed massive short positions in herbalife
That bet the company will soon fail,
And that, like prices stock herbalife falls to zero,
The investor in pershing square will make a lot of money.
I just need to be authentic.
-Make you look like a zombie? -Persis.
Ackman: we manage capital for others,
And most of the time
We buy shares in companies and work to make them more valuable.
But several times in our history,
We found a company we thought this caused a loss
Operates illegally, uh,
And we can make money bet against that company.
How much money have you spent? bet against herbalife?
Uh, we have short positions more than one billion dollars.
On top of makeup, I'm rather a man who isn't too much.
-Yes. -Good.
Ackman: I have another one that is very big A brief public in my career,
In short, this is what I took in a company called Mbia.
We say that a company with AAA basically goes bankrupt
Thinking that these people don't make sense The company accuses us
From false spreads and misleading information about their business
Mbia takes seven years so we are proven right.
And finally, the company collapsed during the credit crisis Due to exposure to for subprime mortgages.
A reporter named christine richard
On the bloomberg news Interested in the story,
And then ends writing a book
About my fight with mbia is called a trust game.
And then he joined an independent research firm
To focus on short ideas,
The company bet against.
And he called me someday and said, "bill, I think I have the next mbia."
Hello. I'm Michael Johnson
Chairman and chief executive officer of herbalife
And that is my pleasure to be your guide for our herbalife tours.
In 1980, the founder of our company marked Hughes began with a dream
The dream a mission for nutrition.
So that people can improve themselves their health
And also to improve their financial welfare Through our direct sales business opportunities,
Which, we believe, is the best in our industry.
Herbalife is a multilevel marketing company,
Which means you can get on your own sales,
And if you are a supervisor or above,
For sales that you introduce
and sponsor directly or indirectly.
Our products are available exclusively through you,
Our independence herbalife distributor
That's why we have rules
About not selling retail stores, outlets or at auction sites.
Christine richard: If you see it, on the surface,
It's very wild a successful company
Selling high prices nutritional supplements.
But back to the 80s,
There are questions about how the product is pitched.
You know, extreme promises made about products,
And of course, always promises extreme about income opportunities.
I am truly committed to make herbalife work,
And I like, "I will do whatever is needed.
" whatever is needed, I will do it. "
I will always be out fishing far below
And I always look this house
By decreasing stairs.
When I grow up in herbalife, I finally buy it.
People leave, "what happened? That person made a living?"
And I left, "I am an herbalife independent distributor."
And people really amazed That's what I did.
It's amazing quality of life.
So far, in the past 90 days, companies have paid us over $ 15,000 part time.
And I made it, right now, I don't believe it myself,
More than $ 8,000 per day
For more than $ 3,000,000 a year.
This is amazing
If I can do it, I have made a lot of money,
Actually great luck, with the company,
Someone can. That is easy.
Richard: I think This is an incorrect tone,
But it still exists over a decade, so...
It looks like must be something
That street street investor wants to look around.
Ackman: I am right skeptical,
That's the approach we try to take
With any investment, long or short,
And then Belgian courts find herbalife
Being a pyramid scheme in 2011.
I think it's rather materially interesting development,
And that's what motivated research.
And this is a case where more layers from your onions are peeled away,
Which is more interesting, uh, it becomes.
You follow what I say, write this,
You will make a minimum $ 50,000 this year.
That the least amount of money you will make
Second year, You will generate $ 125,000,
And that the least amount of money you will make
Narrator: In 1986, founder marked Hughes and Herbalife
Received a permanent order from the state of California,
Limit them from making false income and health claims.
Even so, companies continue to grow.
But 14 years later, hughes was found dead in his malibu house
Overdosage of antidepressants and alcohol.
and a group from private investors
Immediately take control of from herbalife
Before listing companies in the new york stock market,
They look for and find a new leader.
Michael o. Johnson.
Johnson has risen through the ranks of in Disney company
Becoming president of disney international
Announcer: eyes The world is in Herbalife
We will be faster, better, stronger than before.
Narrator: A competitive triathlon,
Johnson's passion for fitness perfect mirror image of his new company.
In Herbalife, he has a midas touch
Revenue grows at astounding prices.
From $ 1.3 billion to $ 4.8 billion in the first 10 years.
Oh, we just started.
We only scratch the surface of what can.
We have not penetrated the market and society Anywhere near for what we will see
Narrator: Johnson does well by Herbalife and himself.
In 2011, he was the highest paid ceo in America.
The compensation package reaches $ 89.4 million.
Mexican sales, up 31%. Asia Pacific, up 29%.
India, 121%! South, Central America, 44%.
Looks like this company is unstoppable
You know, my mother and father are extraordinary strong influence in my life
And integrity is the name of the game in our house
Um, you know, if you do something wrong, have it
Don't ever say that lie, you know,
Because you will lose trust
And I think What we have done here is
We have built integrity and trust in our organization,
In our people, in our products.
And if I'm the ahead, lead it, okay
You know, I will take that responsibility.
Scott wapner: John desimone is sitting here with me
John, nice to meet you
John desimone: Thank you, scott
Wapner: At this time, the invoice and more than 500 people
It's in a theater in the middle of Manhattan.
Bill prepares to give his newest presentation, And they watch this interview lives
In his words, he will expose extraordinary fraud in herbalife today
What do you expect?
Eh, we know this is mo. This is not the first time.
In fact, this is already 18 months always... People here...
It's always "bark is worse than the bite."
Uh, he made some outrageous statements He made 435 accusations over the past 18 months,
Each of the newest and greatest until proven not.
First of all, how are you? accuse herbalife?
Being a pyramid scheme.
We believe herbalife is a pyramid scheme.
Explain, what is it?
Good, Herbalife sells products, weight loss products,
Nutritional supplements, vitamins, things like that,
But what they actually sell and what their distributors make money from
Is by selling what they call a business opportunity
And the business opportunity is to sell
Business opportunities for your friends,
Who in turn sells business opportunities to their friends
You register to become herbalife distributor,
You spend $ 55 or $ 100 to get a starter kit.
And finally you are sure to spend $ 3,000
To buy the minimum amount of inventory you need to get
To be a supervisor
And you have businesses in the box that can make you lucky.
And that's when you have the right to get royalties
From the people below you and what is called a downline.
These are the people You recruit.
William remains: What produces income is a purchase.
As products purchased from herbalife by people in your downline,
They generate upline commission
So when you build it your downline,
And you recruit other people, friends, family members, coworkers,
That is their purchase generate your commission
The secret is to get five other people
Doing the same thing every month.
And teach them to get it five other people
Doing the same thing every month.
Before you know it, not only will you be a supervisor,
But you must have five supervisors under you
Who will have five supervisors under them
That's 155 supervisors.
And if they each do it about 2,000 to 2,500 points volume a month,
You will make somewhere in the neighborhood around of $ 42,000 per month.
Take care: Actually, build downlines and products purchases are needed
For you to qualify for income.
So, only about 17% of all distributors
Worth getting whatever from herbalife
According to Herbalife income statement, of the 17%,
We know for sure, 30% or more will get zero.
And approximately 48% will get
$ 1,000 or less gross income for this year
Once we reduce costs,
And consider that fact they must maintain purchase volume,
The net profit can be ignored.
Ackman: You are deceived into believing that this is a good business opportunity
In fact, actually, you sell rocking
For three or four times slimfast prices.
People can buy it in their supermarket
And that's $ 3,000, $ 4,000, $ 8,000 inventory purchases,
The inventory is sitting in your garage that you can't sell,
Give a salary for people
At the very top of the pyramid
Who has hundreds of thousands of people under them
Top 50 herbalife distributors for
Three, five, seven, 10-plus million dollars years.
That's why it's robin hood reverse.
Wapner: But he claims today,
He has hundreds of hours of video, audio,
Documents to support claims
At a certain level, You have to worry.
Desimone: I am not worried about the substance from what it has.
This is anecdotal, It's very propaganda based.
What he missed was that, Basically,
We have millions of customers who enjoy the product,
It uses products, it is irrefutable We really have an release today from ex ftc...
Take care: What we really don't do have good information is,
Make a purchase of herbalife translate into sales
Who is the Herbalife distributor?
Or purchase herbalife a mechanism to maintain recruitment
And maintaining the commission is not much to do with outside customers.
What is shown by this study the majority from our distributors
Come and become a distributor Because of their proximity to the product,
And they want to achieve it product discounts.
So, effective, what do they want to do? Club members, as in costco
Lack of evidence,
With conditions what part of the product
Never leave Herbalife's distribution channel,
Is part of criticism
And part of the miracle about whether or not
This company can be a pyramid scheme.
This is the reality.
About the product and business opportunities.
I have never spoken to any distributor,
Who does that, who is actively engaged, who doesn't make money Richard: multilevel marketing, mlms, just tap the confidence we have in America It really can be achieved whatever you want
The tattered stories are there for everyone
Herbalife has done a great job reaching to the Hispanic market.
Low-income immigrants have hope to find a successful life here
To establish a small business.
Herbalife says, "yes, and that's how you will do it."
Alright, so we will get it everyone on one side
Julie contreras: The beginning, for me, is phillipe senor colon.
He and his wife call me, talk about herbalife
I don't know what it is, or understand
When I go to his house, it is completely filled with the product.
He has it in his living room, the kitchen...
He has it in his basement and in his garage.
That's what the product has
That he can never move.
But he continues to pay into it
Because he was told that he would make more money.
And he's a very ethical person.
So he said, "I pay attention After this time, julie, that this is a scam.
" and I want my money back, " he said.
So I just said, " you know What? Let's hold a press conference
"and want to see if there are more victims out there."
And of course when we make that call, the victim responds.
They will come here.
They will all leave come here They will arrive soon.
Okay, so, this is an estimate, but I will give you...
-Contreras: Alright, that... -It's amazing.
And they are just ordinary people, right?
Contreras: They are ordinary people and all receipts and everything to support it.
Jay reyes: You are really messy here.
Contreras: Most of the groups are undocumented.
So, they live in that insecurity.
They are people who work very hard, people who pay taxes,
And people who are violated.
And they have the right to search for what they call "justicia." justice.
Contreras: He has suffered a lot
Because her husband keeps reminding him
About $ 8,000 that he owes them.
Contreras: Many immigrants migrate here for a better life,
And if people want prey about their shortcomings knowledge and finance,
I feel it is despicable.
And no one does anything.
Federal trade commission, attorney general...
I mean, should we start? go to make a police report
Des walsh: And another accusation is that we really go after the latino community
Because, in some cases, this is poor, the group is not educated If the supermarket chain opens a new store
In an area which is economically deprived,
They cheered and clapped
Because they carry good nutrition,
They bring work to the community But when we support it latino community,
In some ways, this is a company chasing people Who can't afford it? to make educated decisions about their nutrition
I mean, to put it bluntly, is insulting us,
This insults for our customers,
Insulting entire latino community.
Ackman: It's happened community by society
Famous pyramid schemes pop and drop phenomena.
They need to find new victims.
And there is an initial explosion
Because many people become excited about the opportunities
Being herbalife distributor,
And when they run out of people to recruit
And they find they can't sell their products,
Uh, that's a bust.
Robert fitzpatrick: 80%, according to their submission in 2005,
From people who have in the scheme stopped, and replaced.
If you add all that in five years...
I mean, we're talking about absurd machines here,
Rummaging Millions of people.
Promising them this unopened uninhabited income,
Delivering almost nothing.
Narrator: Since it was founded in 1980,
Herbalife has extended operations worldwide.
Expand in 10 countries in their first decade
For current reach from 93 countries around the world.
Johnson: We just opened Vietnam this week, fantastic Why it's important Are people in Vietnam...
Do they want supplements? What do they know
I mean, I'm not demeaning Vietnam,
But I say, how do you convince them that this is right for them?
Well, that company recent success
Has been built on daily consumption. This is food.
Vitamins, great nutrition, good minerals, carbohydrates,
Protein, all that.
Everyone needs good food in their lives Vietnam has 87 million people. 40% of the population under 25 years old They are looking for work, looking for income
So, we have this two-way street,
Health and wealth. Great meal, good business opportunity
Fitzpatrick: If they can grow globally, go to new markets...
China, 1.3 billion people there,
Latin immigrants into us...
This will keep that maintained for a little longer.
How long can they go? No one knows.
Is there anything we can do? for capacity?
We must be prepared for one million people.
We are ready for for one million people. I do everything I can.
We have all three servers Bright now.
William Cohan: Bill Ackman is in a holy war.
Now, he might end up wrong about herbalife
Have you ever tried herbalife products?
Ackman: sip.
I've really heard it very negative thing
About manufacturing processes.
- I live far from that
Cohan: I mean, here it is
Who is one is getting older before, uh, confident,
Some people will say it arrogant, activist investor on the wall of the road
He makes himself a lot of money,
He spends a lot of money.
Private jets, beautiful apartments, homes in hamptons.
He is a master exploit from the media.
People like to have it, he always makes good copies,
And he changed the copy into wealth for himself.
And that, frankly, a brilliant strategy
Uh, look, p & g one of the great companies of all time
Richard: I remember just sitting on my desk,
After more than one year of research,
Bill is being being interviewed about something really different...
And I'm sure they will do it the right thing.
Quickly sound, you teased in the sky investment conference yesterday
-That's what you have short positions. -Yes.
Secret position. -Yes.
Do you want to share secrets with us
Not yet.
I'm sure he knows very well You put this idea out there
Everyone wants to know, "Is this short?"
-I can't say it. -We have to go to an ad.
I can't, I like to talk about it
When we are ready to talk about it
This is good for America.
What I mean by that is,
As soon as companies go out of business,
Country will be better
Ackman: short selling.
Imagine for a moment your friend collect rare coins
And you have that view the coin will go down in value
So, as you wish shorten the coin
Do you call your friend? and say,
"may I borrow some of your coins?"
And he said, "Sure."
And you borrow coins,
You then sell it for $ 1,000 each They sell to the market at that time,
And then you wait for them for impairment,
And it turns out you really and coins dropped in value to $ 500
You go back to the market, you bought it back for $ 500
You have sold it for $ 1,000, You have repurchased them for $ 500,
You have made $ 500 for each coin,
And then return the coins to your friend
Your friend the same place he when he starts
And he has the same coin that he started with.
You might have to really pay him something to borrow a coin,
Because he lent it to you, so you might pay it the interest rate.
So he is happy because he is interested loan you coins,
You have made money from decreasing value of coins,
And that's short selling.
That's when the results.
But if you sell it with high prices and it goes higher,
And that can go much higher,
Because the stock can go is much higher,
Then you are hooked for that.
So, this is why large cojones are needed for short stocks.
Especially something as public and as big as herbalife.
Narrator: At the end of 2012, ackman got on stage
For the first time to reveal the secret,
Good-for-america is short.
Just want to show some things.
We are short stock herbalife.
Stock Herbalife goes down, we make money
Stock Herbalife rises, we lose money
Cohan: December 2012 The presentation of 300 pages is very detailed
This is amazing.
Ackman: One percent gets 88% from the reward.
Cohan: When he was an advocate for an idea,
He can sell ice to eskimos
Ackman: Recruiting awards is much greater From the retail profits they generate
You can lose a lot money becomes short
So, to be brief pyramid scheme
Like herbalife and not killed,
You must be ready to do it share your thoughts with the public.
Let's go like this,
This is the best pyramid scheme in world history.
Mr. Johnson must get it lots of credit for that
Male reporter: there Herbalife stock drops 14.6%. Ackman news bills...
Richard: Amazing reaction.
I mean, it feels like, "Wow, people have come out.
" They have seen something make them scared. "
Johnson: These people listen to a report
It is generated by a research firm in new york
And we send it official letter
This is a silly statement
By people who is trying to manipulate our stocks.
Reporter: What will you say? for those who say
You are trying to manipulate the success of the company
-And therefore stock price? -Wrong.
We only want the truth to get out
The moral argument he is making
Very harmonious with its financial interests,
And that's why he can see it like he is more holy than you.
If you succeed, you will do it donate the money,
Speaking of which, for charity, you say.
You call it "blood money".
- Yes. -Because?
Everyone says, "OK, you can't believe
" what he said because he lacked stock
"and he will benefit from this. You can't believe it."
I see, by taking economic parts from my investment,
I.E., give the money,
It's more difficult for them to make that argument
You know, I'm a moral person,
But we, once again, manage capital for others,
And that is actually for the best interest from our investors
So that we can bet against companies it causes danger
Therefore type of company
That's government and regulator
It will be more likely to take action against
Narrator: Now, two years after the first herbalife presentation,
Ackman is set to make more revelations
He is sure to do it gives a dead punch to the company
All poor people are being exploited.
The fraud knows no limits.
Yes, this is amazing.
Four hours later, we are done with it, good presentation,
And some genius in the audience
Look at the stock and it goes up.
What is our response
This is irrelevant It doesn't go up though. No problem.
Question will it open again
Jon Silvan: What can we come up with? up with other than irrelevant? Something.
Stock does not rise.
This is certainty.
Stock is not relevant, but it does not go up.
Ackman: we will expose an extraordinary fraud
On the road they basically operate.
This is called nutrition club
Where they talk about places so people can gather
And learn about good nutrition and lose weight,
That's not what happened in this place
Women: women and men, welcome...
Thank you.
... Founder and CEO pershing Square Capital Management, Father. Bill ackman.
Richard: At the nutrition club, Herbalife has a story.
It's very eager to tell that story
After Bill did it work after the company.
Announcer: Herbalife fitness and nutrition club
Is at the heart of how Herbalife helps people change their lives
When so many people in the United States obesity and being overweight,
And in the latino community,
Where these percentages are even higher
From the national average,
What matters is that is a company like Herbalife
To send messages that we need to change our eating habits,
It needs to be changed our lifestyle
Richard: At first I couldn't understand how it works
How are low-income people? find the source to run this club?
And so, several times, go to go see some of these nutrition clubs.
I noticed in the queen, Herbalife has a lot.
This is a population of immigrants from mexico and guatemala and ecuador.
You have to find to find it.
If you stand Right in front of it, You can almost miss it.
Small small shops with green curtains cover the window
There is no sign that says this is an herbalife club,
Or operating hours.
Hello.
They should be clubs, they are not supposed to be retail companies.
It costs you $ 5,000 to $ 6,000, sometimes something is bigger than that,
To open one of these things, in the case of start up costs.
The rule is is quite interesting
You are not permitted to display company name, logo,
Or his words "nutrition club" or "vibrate"
Or there are implications of that This is an herbalife business, outside.
You can't advertise and you can't promote.
You are not permitted to attract customers.
Richard: Can I tremble, can I buy a shake?
Man: who are you
Richard: I'm doing research. Humans: Research?
-Yeah, I'm not a member. -Okay, take a seat.
Richard: You enter and pay $ 5 per day.
They will serve you protein shake, formula one...
You also drink aloe vera water and you drink herbal tea.
So, we see the economy of the 10 nutrition clubs And we told people to sit outside,
Track traffic trends, people enter and exit...
We know what rent is, how big they are, how often they open,
Estimate utility costs, start-up costs, inventory costs to serve...
When you do math, you know,
Your average club, this is 10 we go into the queen,
Losing $ 12,000 a year.
This doesn't seem to be very good business models and this was before
Paying for that person who is running the club
How do they make money?
Well, tell them It's not about vibration,
It's about something they call duplication
Let's listen from horse mouth
Even now because, friend, where your money is made does not serve smoothies
Where your money is made has hundreds or tens
or thousands of distributers around the world.
Here is a presentation from how nutrition club works
From one of the top distributors
Important to remember, operators need to be aware of
The ultimate goal is not how many $ 4 services they sell each day
Such is not the way for them to achieve their financial goals.
Rather than upgrading consumers to become customers
And finally become a distributor.
And finally have distributors become operators who will duplicate
Nutrition club method.
Notice, "duplicate again and again and again!"
This was before an herbalife nutrition club.
Yes, so this is reversed.
So, the last four clubs are here
A year and a half ago is no longer a club.
Too many in one environment.
Reporter: And what you say to your criticism,
Who says, "yes, but most of you your distributor
" don't make money,
"They make less than of 1,000 dollars
" in full year and no commission in a year? "
I would say 1,000 dollars? That is a lot of money for many people This is this elitist don't,
That most people come here for part-time income to recruit someone or build an organization,
We know all the numbers.
Richard: Herbalife lawyers will tell you that
Everyone appoints for disclosure
But when you see how to sell it, people to people
There is a very smart system it goes
Continuously the group of newly refurbished people to enter business.
- broadcast: Women and men,
Welcome to herbalife extravaganza...
Richard: It's about a promise that you will succeed to the presidential team
Man: I promise,
If someone who is homeless, is missing the inside can do it,
Everyone last breathes,
With heart beats born from a mother and a father
Can do the same thing.
And they see this distributor is put on stage
In this extravaganza and they have
Pin with diamonds on it and that's the dream of America.
And the presidential team, it's basically
Half a million dollars a year for the rest of your life.
That is a thousand large out of about 3.9 million distributors
Richard: All right. Thank you very much.
Richard: So, This club I entered, they said to me,
"back in two years and I will continue the presidential team."
You really want the person you meet at this club is successful.
You know, and it looks like is so sincere and hopeful,
But you know the club doesn't survive
And I think they take individual life savings When are they they are sure to believe in this idea
And this business opportunity.
This is a great opportunity for anyone, everyone
And latinos reach it's a little stronger
"I improve my life now, I make people healthier and better."
Their stories are true stories, You know on Disney,
We sell stories and we tell and we are really great at that.
Here we make stories.
Take care: The illegal way pyramid scheme works,
-based success is almost exclusively
In the ability of to continue to recruit other people.
New recruits enter into the bottom of the pyramid
And whenever we stop recruitment process
We found it, those people at a lower level there is no way to earn income
Probability decreased success like the number of people joining
And we can prove it mathematically
That 95% of these people really have to lose their money
Fitzpatrick: Multilevel marketing Present this
As usual business competition
For example,
20 people enter the field, they will all go sell this product,
Only one might be a successful person.
And the other 19 just don't have what they need
We all understand that.
You go through this in sports, You pass it at school,
Then you enter business world
Competition. That's not what happened.
This is something completely different This is money transfer scheme,
Where is managed to get 19
Give him their money
We are here
In my office, my construction office I'm sitting my office when
Herbalife people come to knock on my door
He starts showing me products,
He starts preparing me things...
Uh, tea...
Shake...
And they told me, they make a lot of money
$ 20,000, $ 80,000 a month.
So, that is something to think a little.
Help many people...
Do an easy job...
Not dangerous anymore, so that's why
I started switching my construction business for herbalife
So, I opened the club,
Buy thousands of dollar products.
I feel, "I found herbalife,
" the best company in the world. "
and my upline, miguel ruchiman,
He helped me improve that place.
Whatever I need to open the club
Like people can dream, you know?
Good environment here.
There are many Hispanic people, they come to my club
I try to do my best for people, I don't encourage them
To take products, I just let them to...
To taste... To rest...
To speak at my place...
To start liking the place.
This is my club, nutrition club here I see...
From here, all the way, That is a big front
From my business
My Upline told me,
"the more you spend the more you will make."
That's the problem
That makes me feel very sad,
Because I trust this person.
That's what I thought he was my friend
Our business opportunity comes from the sale of our products.
If I sponsor or recruit 1,000 people,
I accept zero for that.
I just started making money from my downline, as we call it,
Only based on sales of products or consumption.
Julio ulloa: I am aware in four months I not make money
He lied to me.
He is only interested
Makes me spend all my money
Because indeed get a commission
That's what I realized.
So, one day what I do...
I turn everything off.
Hot water for tea...
I put a blender on one side,
Everything, I cover everything, Then I lock this door.
I locked this door,
And just escaped.
I say, "no more. There is no more herbalife."
I lost a lot.
I lost my money I had to maintain my construction the company runs
This is miguel ruchiman club
This is what told me, this is the best business.
Look, he's there.
Yes, that's it.
They take my dream,
My hope to be successful.
Narrator: It was only a few weeks after that Bill announced He is shorted stock herbalife,
Other wall paths heavyweight jump into the fray
Dramatically change properties from ackman campaign
Paul vigna: Herbalife has run out far more in pre-market.
Why are they so many?
Because it's not good, the famous hedge fund trader
Has been taken large shares in the company.
Why did he do it?
It seems like that he did it quite a lot Because he hated Bill Kelly.
Carl icahn: most guys on wall street,
I like and I get along.
And it's no secret, I don't like ackman.
I don't respect him and I don't like him and it's not a secret.
Carl icahn is one of the richest people in the world He may be worth like 25 billion dollars Carl is an activist investor, you know
When the bill is fair out of diapers
He basically can buy this company
And really fair destroy short ackman
Icahn: As far as I know,
He wants to have once dinner with me, I have dinner with him,
And I have to tell you, I'm leaving. I don't know if he is
The holiest man I have ever met in my life or the most arrogant
Cohan: Ten years before, they had invested in an agreement.
Bill Ackman finally sued for $ 10,000,000
That's what he thinks because it owes him.
Ackman: he's a nuisance, okay
I don't enter very good place in my business career
And why don't you think, you know what,
This person is the way to kill on the hedge fund highway.
I won't need to worry about this child again So, I won't pay it.
They go to court and they win
And icahn finally has to do it pay him this $ 10,000,000,
Which is like nickel and dimes for these people.
Icahn: and I say,
He is like a baby on the school yard,
You know I go to a difficult school in that queen
They usually beat little little boys
And he is like one of these few Jewish boys cry
That world takes advantage of it
You know, It's like in an old song
You regret that day I've met that man.
Cohan: For 10 years, they can't stand with each other.
This kind of expresses itself when I see a technical opportunity
Placing what is called a "short squeeze" to the ackman bill
Some people say this The last short stretch,
We have stock now,
This is up 20% year on year.
Icahn: ackman has given us
An opportunity to buy a company at a discounted price.
And for that, I thank him actually.
Again, the worst thing is for short sellers
Is when stock rises
Because the stock can go infinite, theoretically.
That will only make A big loss.
Why do stocks rise?
Just because I don't know and others have promoted it, that's why.
Finally...
This means that the people in the investment community believe in everything More than they believe in you.
Certainly on this investment, that is it.
Icahn: I bought it Because I really think,
This is an opportunity for people unemployed in these countries To get money and I think the product is a good product
Cohan: He's not there because he believes in herbalife products
And what is herbalife do to lift people
Get out of poverty and enter the middle class.
He did it because he thought he could make money by squeezing the old bill.
Ackman: carl can try to set it up Short squeeze,
He can try to scare my investors,
From investing with me,
Sounds like that he tried to do it on this call
Icahn: Ackman takes too high risk
What's the matter? He doesn't risk his life.
He risked his investor's money And I will tell you,
This can be a mother of all short squeezes.
Well, how long can you collect an ackman survive now
He has billions of dollars that the company will drop.
Man: How big are you? think their ego?
Icahn: then he talks about charity, is complete...
He doesn't give it to charity.
Reporter: Carl, let me...
That kind of defines the market for months and months
All discussions about What is actually done by Herbalife
Gets refugees and becomes like a big street circus.
Ackman: I say after carl in general,
He calls me and he really says,
"you know, bills, we can be friends now,"
I hope I have a recording from the conversation
I just said to him, "look, carl, you're not my friend ," and that's all.
Icahn: I never said that I want to be friends with you, bills
I won't be friends with you,
-And you said to me... -Ackman: Alright, carl...
Icahn: You want to be a friend so we can invest together
Ackman: Carl, I'm not interested...
do you think I want to invest with you?
-Oke, let's continue... -Icahn: no invest with you
If you become the last human being on earth Reporter: Let's continue
Zac Kirby: I entered my last semester of college, finishing at a business school
Do not really have job prospects,
Know what I really want to do it even at that time
And I have a high school friend approaching me
About this nutrition club it popping up everywhere.
We are in Oklahoma and the rate of obesity is very high,
This is 67% among adults Over the age of 30, become a weight loss company,
In the region where it is...
Weight is needed.
I think it will be very appropriate.
People who registered me took me to Oklahoma City
For one of them seminar successful trading
It's like a big motivational event
Johnson: Herbalife is a global nutrition company It sells products exclusively
Through a network of people the same as you.
After presentation
You will have a chance to discuss our products
And our business opportunity
With people who invite you here today
And welcome our herbalife family
And our herbalife opportunity.
These team people, they will really show their checks
What is herbalife? is sending them
Say how you should get it get involved now
Because of this nutrition club can easily produce, you know,
$ 20-30,000 in sales each month
So I thought, I have found a cash cow here.
Once someone enters our club,
We say, "Welcome to the club."
And that's a little something, we welcome them to the club...
You know, They feel high energy
It's there, there is music going
You want to know how many you told him about,
You know, the business,
Because they will be like, "they only saw to recruit me,"
Or, "they just search, you know,
" to take me their business. "
So you really want to start building
Your relationship with these people first.
On the first day,
These are all part of planting seeds
You don't need the whole tree has not
That will come in time. Believe me.
But be patient. Make an agreement
The agreement is here. build herbalife
It's about duplicating.
It's about growing our royalties
And if we're just there, just, you know, Slinging a lump of shake,
And yes, have lots of fun in doing that
But the problem is, is that we are there
To duplicate, to grow our check.
Kirby: What kind of sale is my on the idea is,
I think, 40 nutritional clubs
It's open a two-year trip
Down southern oklahoma
So, generally when you see an industry
It throws up brick and mortar stores
With fast speed,
There is some money.
I have a student loan
And I don't have it a savings account definitely and, uh...
The only thing I have is, I have a '73 mach 1
mustang That I restore all through high school
I actually use it as collateral
To get a $ 15,000 loan to be truly open a nutrition club
How to herbalife structured, it's set
Small goals and macro goals for distributors
A small goal can be obtained and that makes him go,
That keeps it in it. They start with a 25% discount.
Then it hit him until 35
And then to 42 and then a 50% discount.
So, I mean, it's small stepping stone incentives
To keep people in the company.
And that, for the average person
It will take six months to a year Just reached 50% discount.
I buy and go straight to the 50% marker
And open a nutrition club.
Announcer: In Herbalife, Your success is our business.
That's why we are developing a training program
It can teach you everything you must know
To grow a successful business.
Kirby: And Waldron, he was with the company
Almost from the beginning.
I have dinner together and
And that's right legitimize it, the fact that I'm meeting
This individual has ever been in a company for almost 30 years He has this big house.
$ 80,000 cars in the driveway, you know.
And he sits there tell me that dinner
"You've got it is much easier than I have it
" because you can open a nutrition club
"and they will do it come to you."
So, hook, line and sinker, the next three months,
We are just about opening club nutrition because
The man above told me This is where the money is at.
I reach level in the company, they call g.E.T. Team.
The global expansion team is what stands for.
You go from supervisor to the world team get. Team.
You are climbing the stairs.
You are halfway up already
And I reach it in six months.
It looks like is like a good start.
The only that separates you
From not getting on the presidential team
What is one thing? Write this.
Give up.
Cohan: Herbalife just don't sit there and say,
"oh, the right bill
" We will just go pull the plug
"in this operation."
You know, they fight.
They build them cases in the media
And with their investors.
This is war,
And for all of us to think otherwise here will be stupid
Because the name of another company has never happened.
This is unique in Americans business landscape
Female reporter: Your share price has been hit.
What do you say your shareholder?
How they have to rally to get out of this storm
We are very profitable,
Um, we will continue to be very profitable
And the share price will reflect its value
That's really in this company.
Richard: This company has been built
Like armor armor.
They hire all of these major sports figures
To promote the brand.
Now the best pyramid scheme tries to recruit credible people
Uh, to give them, You know, credibility.
We have Richard Carmona.
He is a general surgeon from the United States.
He happened to be dating
And this is someone very high integrity.
He is in the council of herbs.
And then they have it this Nobel laureate
To make credibility about the product.
I believe Dr. Ignarro
What are the richest Nobel laureates Why?
Herbalife has paid him $ 21.2 million
To serve as a spokesman company.
And for money...
OK, look.
And I like that idea from American products Helping people in other parts of the world.
And so on,
This has every combination of the things I like.
I mean, the hardest part, I have to tell you, michael, is
We are all diets and others people are starving
And you actually have a product that is related to both.
This is amazing.
I think it's amazing.
and not sticking Your hand comes out of the window.
Do you understand me?
I was raised to be hard and proud by my parents
I remember my mother was part of Italy
And nobody talks about that
Sometimes I'm wrong,
Behavior in that I do alone,
But it's out of passion.
Herbalife has come to our community
Like a thief at night.
Stealing from our people.
We say, "afuera with herbalife!"
Herbalife!
These people go to their gala
And, without shame, knows that
On the other side of the building is human Who has received is financially detrimental to them.
They prey on.
Herbalife!
You go and enjoy extravaganza
But what do they say?
Excuse me, can you ride the sidewalk right?
Thank you.
Contreras: In 2002, my life changed.
There is this young man,
It shoots people in the environment.
We understand he is part of an aryan gang.
I was shot in the back of my head
When I lose consciousness
All I can think of is my daughter and daughter I think that when I was truly born
Because before I used to worry
My house, my bank account, That is my priority.
And in an instant, Your life can be taken.
Maybe that's why
I'm very sensitive for any victim
Herbalife or whatever.
We need to understand them
Yes, we will do that Um...
Yes, I have returned.
-Do you hear? -Yes.
Good. I can see the return...
Not the most comfortable chair in the world
The return is behind the bill.
What's new?
We see this idea from you the end of last December
Since then we see double stock
You need the government to be involved. They haven't.
What are they not listening to? Tell me.
The stock is up where we shorted
We are shorted in mid to high 40s.
So we definitely lose money sign to the market
But what we focus on...
-How much? -You know, a lot of money.
Four, five hundred millions of dollars.
Something like that.
Uh, but what do we focus on with herbalife
Tells a story with regulators
Ensuring that they understand
What's the problem,
And getting regulators interested in the company
But the fact is that you have been very outspoken
And we haven't seen whatever happened,
Can someone make an argument
You might help the company?
Good. People can make whatever argument they want
I am quite comfortable the government will do its job
Narrator: With suspicion pressing the regulator investigating,
Herbalife executives are launched a series of reforms.
Reducing shipping costs, simplifies product returns,
and bend to the distributor
With questionable side operations
Richard: They are forbidden this cheat system
What is meant by as lead generation.
Distributors will run ads on television, on radio
"be your own boss," "make unlimited income,"
And there are no details.
I have about $ 200 for my name
So I found an ad that said, "work from home,"
And I called and it happened to become herbalife
But most of that is to spam your message
That's real income.
Big players
Know how to send one million emails
And they do that once a month.
Someone will sit on their computer,
Suddenly something will appear.
And that will say, "lose 30 kilograms, 30 days for $ 30.
" enter your credit card number. Click here. "
And the top distributor will sell
Name and number of people
For existing herbalife distributors
$ 130 names.
And they will do it new instructions ,
Someone clicks this five minutes ago,
And this is your information,
Call that person, they are ready to go
They pick up the receiver. "Hi, mary, this is aaron.
"don't want your income extra $ 500 a month?"
Richard: Distributors are notified, You must purchase these leads.
You must continue to buy it.
And at some point you will start recruit enough people,
Who will recruit quite a lot of people
That you will succeed the presidential team.
This lead generation system
That's how financially destroys
Because people will not only have to buy a product,
But they will buy, in some cases,
Thousands of dollars from leads a month
So people disappear their retirement, and they lose their savings
Following this system.
When herbalife closes this,
Wall Street says, "it's too bad if people lose that money
" as long as they clean it,
"you know, we are fine with that
Johnson: Wake up better every day,
and build it better means
Change some philosophy in the company.
Quick rich. It's for other people to do.
Healthy now That's for us to do.
Kirby: We open five nutrition clubs,
Types spread around northern oklahoma.
And when I reach g.E.T. Team level,
Then the press team members start telling me
How the payment system really works
I will never forget we held a meeting
In the nutrition team 'club file.
He is like the head of Honcho here is Oklahoma from Herbalife
He is actually my upline.
Executive 30k member of the presidential team,
Team File
I tell you every one of you
Have a chance to live like this.
Whatever you want, is just a big dream...
Kirby: Tim said
That was first made a commission
Of our top three,
But now we will also succeed
Of the four of us, fifth and sixth.
And after you pass it your sixth downline,
After you get to you seventh, eighth and ninth,
There are still people who pay, It feels like half a percent.
So, I mean, basically, what he told us was,
Never stop.
And here it is small hand movements he will do it
Because he said that keep going down.
Because it's so down to everyone
No matter where it goes
I mean, I got a degree in business.
This is pretty clear...
That will continue to go down. That is a pyramid. This is not sustainable.
Ackman: The idea here is you will build this business
Only recruit six and each recruits six people.
But you enter almost the bottom of the pyramid.
And at that time you get to level 13, your prospect is very dim.
Because you must recruit more than twice world population.
Kirby: That's when I started learning more about
These various methods they use to recruit people.
Right before I to the company, it was sales leads.
I'm like, "okay, so I'm basically stuck in the current phase. "
I have made a mistake. = And then they will slide out and draw commissions
From that person they just scammed to take over their rent
Types of people who can do that, I mean, they are criminals.
When do you know, when you try
To get someone into business
You know they will fail, that is a criminal
I do have close friends, roommates through college,
And hers nutrition club failed
We have enough complete falls out
More than a deal because
I am the one who introduces it to herbalife.
That's clear pyramid scheme,
But when you are investing a lot,
It's a bit difficult six months to say, "UPS, messed up."
Take care: Herbalife a company with business models in industry
It has been the subject of discussion for criticism for years.
But even federal trade commissions don't know the difference
Between illegal pyramid scheme
And legal level marketing company
Without an intensive fact investigation
Fitzpatrick: they have one court case against amway
That gives multilevel street marketing.
But far more important, government,
Starting with reagan administration,
Adopt position deregulation
And the industry starts pouring millions into our political system.
All with one purpose.
The same goal the cigarette industry has
Because I like the cigarette industry,
It has an existential need to prevent regulation
This has even one advantage,
That cigarette industry does not have
Until now, already exists there is no victim's voice
Douglas brooks: Often, people think the reason they failed
What are they? not trying hard enough,
Or they are not suitable for recruitment that you have to do
But once they find it out that other people are in the same situation,
Then they realize that That is not their fault.
That there is a system here which prevents them
Has the type of success described for them.
hi, mr. Brooks.
Ackman: In an effort to recover their losses,
Herbalife is distributor from Chicago
Detained lawyers Douglas Brooks
Representing them in a class action lawsuit,
Bostick vs Herbalife.
Instead of going to court,
Lawyers for herbalife and bostick
Agree completion of cash from $ 15 million.
On the eve of federal court approval,
Chicago group has come to California
To object to the settlement.
Pretty early, when I hear about this settlement,
I realize this is a very bad deal
How many times have you played?
when you become herbalife distributor,
You buy lottery tickets
For the lottery is over
The class is approximately 1.5 million herbalife distributors.
Herbalife pays a settlement funds of $ 15 million,
Who works about $ 10 per person.
- Tomorrow in court...
I say judge at least
280,000 people reach supervisor level
And the average loss is about 8,000 or even more.
I think it's aggregate damage to class
Is it between $ 700 million and $ 1.1 billion.
I want the judge to see that there are real people
Who is really broken by this company
The rule is that the judge must find it the solution is
Fair, reasonable and adequate.
I have each of these people sign a declaration
About their experience and their objections to the settlement
They understand that this is a long shot
if you want Come here in a circle.
Oh my God, I asked you today to call our ancestors,
And I call you, Mother Earth,
To enter life of brocclas.
Brooks: Thirty-three years from legal practice,
I have never had a client who put me in the middle a prayer circle
Contreras: I ask you to hold it each of our victims
And broklas brooks with their hands,
And that in Douglas is energy from holy spirit, god father
Amen.
This brings home to me
That is unfair an abstract legal issue
This is something that affects human life.
If I can do it something to help them,
That will make me feel like that I do something that means
Questions?
Yes sir.
I don't understand something.
You get this great presentation that you spend a lot of money.
Everyone doesn't understand except you
I don't understand.
Tell me why I don't make mistakes
Show properly the validity Herbalife is doing
To turn off this company.
I don't see it.
And why are others? on the other hand?
Okay, okay, sounds like you are bull
No no. I'm not a bull, or a bear.
By the way, is a good question
Okay, this is a good question. Let me answer it.
Give me a good answer
We already have soldiers working on this project
Hundreds of people, investigators, lawyers
Carl did not do it type of maturity perseverance we do.
Look, the nutrition club is designed to be a secret.
This is clever cheating.
You go after the people who are the lowest income, the least sophisticated,
Many of them are undocumented.
You don't complain when you are an undocumented immigrant
Because you might be thrown out of the country.
What are all of these? latino distributors
Documented here?
So, every distributor who registers,
First they give us with the taxpayer id number.
That is our obligation to make sure
That our tax is currently there paid by all our distributors.
Well, if so, what do "distributors not fly"?
Because it's not It seems like it makes sense to me.
That point you enter in Herbalife,
You have those who meet the requirements to continue
Cruise ships and airplanes,
But then a separate group doesn't fly.
What does that mean?
So, that is not the part of our terminology.
Our focus is supporting all distributors
Women: They don't know what "distributors don't fly" is?
This is not something It is in our terminology.
Narrator: End of 2013,
Stock Herbalife soars to height all the time
As a series of developments
Reduce ackman short positions
He left after Belgium,
When it's like Belgium it will benefit him And when Belgium comes out benefits us,
Actually discredit ackman thesis,
That is no longer important.
Bill said at one point has said,
He does not believe the audit will be clean again That's
The stock is now up 7%.
This is seen as A very positive step.
How is this meaningful to you, carl?
Icahn: You know sometimes investment is just a kind of no-brainer.
I think this one, when I buy it,
You have been set up an argument today
It seems, frankly, most of it is not important.
There is nothing not important about it We have facts.
It seems like all road walls are against you.
Analyst, investment banker...
Ackman: People on the wall road, seem,
Not really cares whether or not
The company pyramid scheme
What they care about
Is the stock price in the short term.
It's about 13% bouncing.
Herbalife is will use facts
That share price has been up to this day
To say that everyone ignores what we have to say
My advice is You might don't ignore it
Next?
This is not a good idea to take moral problems to the wall road
And ask them to become judges.
But in the heart, This is a moral problem.
From New York times tomorrow,
This is accurate describes your behavior
To learn more about the beautiful the things you do,
Or is it a story that will cause them to think badly about you
If they understand the facts
On the front page times new york,
Then you shouldn't do it.
Narrator: Fifteen months after the opening salvo
But by the way he or she is not anticipated or welcomed.
Michael schmidt: This is the person who makes bets on a company,
Who is now trying to get a regulator
To reduce the company.
He needs to have a victim.
These people have been harmed by this company,
Able to connect with the regulator,
And show the regulator how they were hurt by this
He has paid nonprofit Hispanic groups
For their help in this matter.
Richard: not documented former distributor
Will not go to the government
And give them their name and the information.
Which people tend not to do
When they become victims pyramid schemes too.
They feel embarrassed. They feel embarrassed.
They feel it's like that part of perpetuating crime.
Ackman: So we stretch out for grassroots latino organizations
For national victims campaign recruitment
I think we commit as much as $ 130,000 for that effort.
Mr. Ackman has made many donations
For these nonprofits organizations, things like that,
That's all don't know about
We only know that piece.
So people ask,
Does he only bring information to the regulator,
Ackman: The day after tomorrow is pretty horrible New York Times article,
I am having an advisory board meeting.
I said, "Look, what should we do?
" I do not believe the government has not acted. "
And maybe the right thing to do whether we cover the position,
And just decide we somehow interfere.
Because the government is afraid
Enter the situation with a short seller.
= = We really have a discussion.
In the middle of the discussion, I got a call from our trader.
Our head trader, Ramy, said, "bills, herbalife supplies have been stopped. "
And I said, " Maybe there is a god. "
Less than 90 minutes ago, we have learned
Controversial maker
Shaky health and supplements
Has been served with notifications
By federal trade commission
That will be investigated.
Male reporter: The investigation can last six months to one year
The stock has just been hit by
And actually gives ackman
Return to somewhat near the break-even point
Female reporter: Herbalife said that it welcomed the investigation,
And "believe that Herbalife is according to
" with all that applies laws and regulations. "
This is one thing
Herbalife wants to avoid,
I can tell you that, from the first day
Icahn: Now with ftc there,
I just hope so we get a clean bill of health,
Because I really did it thought that this company...
Yes, yes, do some marketing things.
Is that wrong
See, do they make an appointment? Maybe,
But there are also many people make lots of money
And ackman has this coat, "I keep Hispanics."
Why not? go save himself
Anchor women: we want to bring you updates on this latest news
In herbalife
Herbalife now is being investigated
By fbi, by the federal government,
And this looks like
escalation
From the probe, but the company itself,
Say they have there is no knowledge about it at all
Ackman: You have a lot of government regulators, agencies
Seeing a company from civilian
And criminal point of view.
And I think That's where the rubber is
Finally meets the path,
With conditions whether it's herbalife or not
Gets found pyramid scheme
My father is asking questions
It's always risky call your father
Is that a pyramid scheme?
- Father, if not find out now...
Brooks: I always hate bullies.
People who use them strength of personality
To drive others around.
- Good morning sir. Brooks. -Good morning.
When I see victims of these things,
I hope I can do something to fight
Against bullies.
We are ready.
Me too.
And we will get rid of this When we get to the courthouse.
We object to the solution!
Herbalife!
Brooks: Today's session is final approval session
I submit a fairly long one objections to settlement
In order for herbalife to release of the 1.5 million class members
With a reward of $ 15 million,
Is it down very cheap
We will follow you in, okay
OK, yeah
Brooks: I hope so the judge comes out and says,
"I really have a problem with this solution
" I think Mr. Brooks and his objections
"has raised some concerns,
"and I won't approve this agreement
I mean, it's me...
That's my dream. head
Oh yes.
I think there are very few doubts Nothing... Nothing moves it.
Not one bit.
Contreras: Whatever decision he makes,
We win today,
Because you carry a message we
And for him to say it doesn't matter,
They're important.
And we don't will stop this fight
We thank you. I thank you.
-Yes. Thank you. -Thank you.
Thank you. Thank you for helping us.
I am very afraid of herbalife will say to ftc,
"see, a federal district judge
" has agreed to the settlement.
"We have a release of of 1.5 million class members,
" we pay some money... "
And there are at least the least a faction
In ftc that will say,
"well, why aren't we? just like onboard?
" Maybe we'll make it they pay fines
"But the point is we don't go to heart
" why will this industry continue to burn people. "
Ackman: So how can they do it? Get away with this?
What pyramid scheme does have five billion in revenue,
Is it registered on the new York Stock Exchange,
Is it audited by Pricewaterhouse?
Now big lies are used by by totalitarian regimes,
and by Nazis, and by many people.
And people generally believe in big lies
Because they are so brave,
That's how might be wrong
Madoff is managing $ 50 billion.
That idea $ 50 billion money manager is running a pyramid scheme,
Well, that's why people continue to put money into it,
Because that is indeed the biggest lie of all time.
A small lie people don't go with
Big lies people get away.
Kirby: You open your nutrition club,
You realize that must recruit people,
And start making commissions from your downline
But I can't lie to people
And tell them, "You will make money really good,"
When I know I have five nutritional clubs
That has happened operating for six months,
And we haven't done it to make a profit
So, uh, we try to make it their business model works,
And keep away from recruitment
And trying to sell his dream,
We try to only sell their products.
That doesn't work.
The product is too expensive And you are trying to get people
To drink liquid shakes more than eating food
You go against human nature here
Mostly, we will eat half of that,
And try selling the other half.
Interviewer: What happened to the others?
You throw it in the trash.
We keep it for one and a half years.
For many people on herbalife,
They will do it go find a job
And feel like a failure and be embarrassed,
Because they bring all their friends and family
In this fraud.
Let's see if I can handle this without choking on myself
But I'm one of them The lucky one
Lucky to be found new and emerging industry to enter into,
It runs correctly with a window display
I have built it.
We just made a quick button and changed it to the steam room.
We help people to lose weight,
Now we help people to quit smoking So everything works, but not as a nutrition club.
Fortunately I am not inferior to my collateral with the bank I still have a car.
Mark Hughes: Trust me
I can tell you with absolute sincerity,
Wildest dreams You've thought about it It can be a reality in Herbalife.
I go home today and this is on my door
This is addressed to me. It says, "Dear Ms. Contreras.
" on July 15, 2014 "univision chicago shows a piece
" where the following statement is issued
"According to lulac's julie contreras,
" There are fears in the community
"Herbalife spread the rumor
" that they make accusations
"against the company,
" will be reported to the immigration officer. "
They say," we suspect that is your statement
"is the product misinformed,
" distributed by pershing square capital management. "
Who in hell pershing square capital management?
I've heard it in the paper. Nobody pays us.
"thus this statement is illegal and defamatory. "
" the statement is illegal and defamatory. "
Herbalife Distributors have been intimidated,
Has threatened our people.
Threatened by their legal status.
Threatened by physical danger.
Waiting outside walmarts for them,
or a grocery store that they go to,
To collect their $ 1,500, or $ 500, or $ 200 It is said, "we demand that you stop and stop from this behavior
" and you submit it a written revocation of your statement
"to immediately reveal.
" that we might be right your misunderstanding
"regarding herbalife relations
" in the latino community.
my dad used to tell me,
"never apologize to be Mexican."
And we used to grow and we used to say,
"We're Mexican-Americans."
And my father died when he was 50 years old I think I have this tiger inside me
My father is inside me.
I won't apologize for who I am,
And I'm sure, of course,
Will not apologize
To bring a truth to the public
From what happened to my community
The truth is not far away.
Johnson: This is recruitment,
Means bringing new distributors to our company,
Which is the most vital part of our bloodstream.
We bring new ones distributors in, we grow.
It's that simple
And the company has built up its entire reputation,
His whole life is recruited.
Our top dog,
Greg calls them "hunters" out there,
Our hunter, our main distributor,
Our chairman club, our press team,
They are professional in this matter.
No one can do it better.
You are next to Alan Lorenz,
And he will recruit cabdrivers, and busboys,
taxis And servants, and everyone.
He doesn't care who it is.
Blast! He caught it in this game.
Ackman: So, herbalife,
The business opportunity is a scam
This is being arranged not only by senior management,
By the club chairman members,
By the presidential team,
They are conceived, designed, and run a strategy Exploiting the poor.
Recruitment tactics, are very positive most.
Sometimes leading people down the wrong path
$ 4,000, jam into it, with instant distribution
Load the product on.
See you later.
Good luck.
Credit card bills come, couples say,
"how are we going to pay this?
" You don't sell the item it is in the garage
"it's in the kitchen. It's out there..."
Ackman: This company is a fraud before michael johnson
Michael Johnson increases cheating,
Brought modern management techniques
Johnson: So what happened today?
Today, we recruit.
We are still a recruitment company
We shouldn't be like this.
Michael Johnson is a predator, good?
This is a criminal company, okay
I hope you listen, michael
It's time to close the company goes down
Bill Ackman's gets a lot of money
Invest this.
And I think the only he cares about
Being the richest person In the world.
Well, you guys have been very patient Stay here. Thank you.
Reporter woman 1: A while ago,
Pershing capital square ackman bill
Delivering what is promised will be a deadly blow to herbalife.
Male reporter 1: investor has just got three hours, skewed, presentation of rules
Not that they were promised the day before.
Female reporter 1: He tries basically to make his wish come true,
And they are not impressed.
And in fact, shares are up more than 23%
Come in at a six-year high.
Here it comes, guys.
Female reporter 2: Herbalife says in a statement,
"Bill, please say" further shown today
"that is the fact is on our side
male reporter 2: This is very unusual
That's what you can pay a company with fraud,
And then think you can get away with it,
Without type smoking proof of weapons
That is not owned by ackman.
Congratulations, sir.
Good.
What day
That is a good day. It's a very good day.
Contreras: Herbalife's a large company.
And after they send me the letter stops and stops,
I send them a response.
And the answer is,
I welcome them
To come to tell me
About their commitment
To the latino community.
And we invite them to come to our church
For months, they continue _ our strings together
"okay, this date..." then canceled
Then they have courage
To invite us go to their gala
And pay for us plane tickets and pay for our hotel,
Same as I sent Herbalife a letter,
That's the same I sent a receipt.
About all things he is doing,
But, "okay, you do these things,
" But it turns out not really helped my people
And by the way, "we are here."
Hello.
Hey. Thank you for having.
Contreras: I'm glad you're here Yes.
-How do you feel? -I dont know him.
He is from another world,
And he entered our world for a while.
Apart from investment,
I will pursue this the end of the earth...
OK.
Until the company closes,
People who cause harm are held accountable,
And I am also committed to give 100%
Of any benefit I made from this
I think we will make more than 100 million rupiah.
This is a big number.
I really don't know the previous latino community
You are the principle of sacrifice
So the money will focus on latino communities
Can you send two or three officers here to church,
Because there are three coach buses
Herbalife protesters
Like for herbalife.
Contreras: Herbalife pays them to come.
One of them, he said,
"they gave us $ 200 to be out there."
I said, "oh, well, I can't blame you."
I can't blame my people Who doesn't need $ 200?
Crowd: herbalife! Herbalife! Herbalife!
Herbalife!
Hello, Herbalife.
We are ready for rock and roll with this company
We have a length the road in front of us,
And guess what, we just started, right?
This is the name of the game.
So it's history I am from a family of immigrants
Unless my family immigrates to this country in the 1890s.
120 years ago
And my great-grandfather was born in Ukraine
Which is part of Russia.
So at the age of 17 years, he walks 1,400 miles to austria
Someone teaches him how to become a tailor
And then he goes from austria to hamburg,
And he went aboard and he came to this country.
He comes without money.
Then finally, he starts making a coat,
And he has his own factory on staten island
So I'm here.
I'm one of the most lucky people in America Eh, I remember,
Imagine if I was great grandfather
It has arrived in America,
And instead of being a tailor,
Someone sucks it into a pyramid scheme. Right?
So I stand on the shoulder the person who came before me,
This is my obligation to protect people who is coming now
You must understand we will protect this company,
We will grow this company,
And all of this outside sources
Who wants to describe us,
We will capture narratives from them
Time is on our side.
We have spent $ 50 million...
A little more than $ 50 million in the last... Now it's been three years
In our investigation from the company.
I'm glad there are many governments organizations
Look into herbalife.
But I'm a little frustrated about speed
The problem is that is being handled
And you are with us together, is family,
And no one messes it up with family.
Right?
- No one. -
No one.
So, uh, this is a very lonely battle.
Our fight against herbalife.
Contreras: No more.
We take this fight smart to the road
We will win.
And we keep you closed.
And this person won't go
With what he thinks he will get away with it,
Because he doesn't fight me.
He thought he was against me, he was fighting with the army.
And we have soldiers of people
Doing good out there In the world.
All: herbalife! Herbalife! Herbalife!
Herbalife! Herbalife!
Herbalife has everything from various things
That might be not shorting.
Of course not songs a billion dollars
And in a way that is so common.
They are all victims. This is Olivia Torres.
Cohan: But he is in a crusade.
And I didn't see him stop until he arrived the promised land I give $ 20,000 in business I don't have anything else.
Ackman: when you meet people who have been harmed
And you hear their story,
This is very moving and is very disturbing.
And that fact companies know they have been ripped off,
Literally, millions of these people are from time to time.
And they don't care.
That's amazing.
You know, this is amazing.
We are very, very sure that as ftc
Come to them finality of investigation,
Or they get all facts on the table,
They will leave, "this is great company."
"the future is light cannot be compared."
- Let's go herbalife!
Crowds: Herbalife! Herbalife! Herbalife! Herbalife!
Ftc has accused herbalife
By cheating hundreds of thousands
Who sees herbalife? promotional campaign
And signed for what they think
The dream is described by herbalife is an illusion.
Mostly herbalife distributors
Finding them can make little or no money
Selling herbalife products.
People who rent space
To open a nutrition club and work long hours,
Not making money, or losing money.
A small percentage of herbalife distributors
Who makes a lot of money?
Paid with herbalife,
Not to sell company products,
But to buy the product itself,
Then successfully recruited
Large networks of others to do the same thing.
That is why, besides accusing fraud,
The complaint alleges that herbalife's
Compensation unfair structure,
Therefore the distributor award to recruit other people to join
And buy products to advance in marketing programs,
Instead of responding to
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