Thursday, 28 August 2014
Last updated 5 hours ago
Aug 19 2013 | 9:29am ET
Nutritional supplements company Herbalife may—as Pershing Square Capital Management's William Ackman alleges—or may not be a pyramid scheme. But it kept company with pyramid schemes, according to a new report.
A Financial Times investigation shows that Herbalife maintained its ties to Online Business Systems for almost a decade after a Canadian court had branded the company's predecessor a pyramid scheme.
A 2004 ruling found that Global Online Systems, which became OBS, was a criminal "scheme of pyramid selling." The company's main business was recruiting salespeople for Herbalife.
GOS was ordered to make changes to its practices and to notify its customers about its criminal conviction. But before the court ruled, the company encouraged customers to move their business to OBS, which is run by the daughter of one of GOS' founders. And OBS promised that "your Herbalife lineage remains the same regardless of the changes to your new marketing system."
Herbalife earlier this year moved to distance itself from OBS, the FT reports, restricting the use of leads and marketing materials by distributors. The company has since ended the sale of leads to or by distributors.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...