1 00:00:42,507 --> 00:00:46,237 Visit www.Fastbet99.club Trusted Trusted Online Gambling Agent 2 00:00:46,245 --> 00:00:48,135 That's what I made in my career. 3 00:00:48,146 --> 00:00:51,146 So, how is that? increase expectations? 4 00:00:51,149 --> 00:00:52,209 Man: Uh, what do we learn? 5 00:00:52,216 --> 00:00:56,446 Ackman: you will learn why herbalife will collapse, 6 00:00:56,453 --> 00:00:57,553 And that is a pretty strong statement, 7 00:00:57,554 --> 00:01:04,464 But this is the biggest fraud in terms of scale, of the countries involved, 8 00:01:04,460 --> 00:01:06,560 Danger for people... 9 00:01:06,562 --> 00:01:12,102 Man: And now, we join the ceo from herbalife, michael johnson. 10 00:01:12,100 --> 00:01:13,100 He has called. 11 00:01:13,101 --> 00:01:14,071 Michael Johnson: First of all, guys, 12 00:01:14,068 --> 00:01:15,668 This is not about herbalife business model. 13 00:01:15,669 --> 00:01:18,039 This is about the billing statement business model. 14 00:01:18,038 --> 00:01:20,408 It's blatant market manipulation 15 00:01:20,407 --> 00:01:24,137 We are not a pyramid scheme. That is a false accusation. 16 00:01:24,144 --> 00:01:25,544 This is a legitimate company. 17 00:01:25,545 --> 00:01:27,505 We have been doing business for 32 years. 18 00:01:27,513 --> 00:01:29,883 Millions of customers around the world. 19 00:01:29,882 --> 00:01:30,582 Proposition of Mr. Ackman 20 00:01:30,582 --> 00:01:33,822 That United States will be better when herbalife is gone... 21 00:01:33,818 --> 00:01:37,418 United States will be better when the invoice is lost 22 00:01:37,421 --> 00:01:39,551 Good. How are you? 23 00:01:39,556 --> 00:01:40,186 Um, hour, clock back. 24 00:01:40,189 --> 00:01:42,889 Do you want time, or do you want to calculate the time? 25 00:01:42,891 --> 00:01:43,361 What do you mean? 26 00:01:43,358 --> 00:01:45,788 -We have a speaker timer. -During the presentation yourself... 27 00:01:45,793 --> 00:01:46,933 Just count up 28 00:01:46,927 --> 00:01:48,427 -Count rises from zero? -Yes. 29 00:01:48,428 --> 00:01:49,058 You understand Thank you sir. 30 00:01:49,061 --> 00:01:52,601 Ackman: the company clearly panicked 31 00:01:52,597 --> 00:01:53,627 They know what we have. 32 00:01:53,631 --> 00:01:56,631 Male reporter: They say, pay, that's Herbalife continues to face it 33 00:01:56,634 --> 00:01:58,304 An unprecedented attack 34 00:01:58,302 --> 00:01:59,672 Support your billions of dollars bets 35 00:01:59,670 --> 00:02:02,900 To manipulate and drive herbalife stock prices to zero. 36 00:02:02,906 --> 00:02:06,236 Female reporter: Looks like all the walls of the road are against you 37 00:02:06,242 --> 00:02:06,842 Man 2: Ackman is a liar. 38 00:02:06,842 --> 00:02:10,082 You scare hell out of people, get the stock, 39 00:02:10,078 --> 00:02:11,278 And tell the world How great he is. 40 00:02:11,279 --> 00:02:14,409 Female reporter: Do you still believe this company is worth zero? 41 00:02:14,415 --> 00:02:15,805 Ackman: yes 42 00:02:29,595 --> 00:02:33,925 The company is a goose that puts a golden egg. 43 00:02:33,933 --> 00:02:38,643 And believe me, I've never seen a goose take out so many golden eggs 44 00:02:38,637 --> 00:02:41,337 - all my life 45 00:03:16,373 --> 00:03:19,043 Narrator: For two years, hedging funds for the ckman bill 46 00:03:19,043 --> 00:03:22,813 Has managed massive short positions in herbalife 47 00:03:22,813 --> 00:03:24,053 That bet the company will soon fail, 48 00:03:24,047 --> 00:03:28,247 And that, like prices stock herbalife falls to zero, 49 00:03:28,251 --> 00:03:32,621 The investor in pershing square will make a lot of money. 50 00:03:33,588 --> 00:03:34,918 I just need to be authentic. 51 00:03:34,923 --> 00:03:38,063 -Make you look like a zombie? -Persis. 52 00:03:38,059 --> 00:03:40,889 Ackman: we manage capital for others, 53 00:03:40,895 --> 00:03:41,425 And most of the time 54 00:03:41,428 --> 00:03:44,698 We buy shares in companies and work to make them more valuable. 55 00:03:44,697 --> 00:03:46,397 But several times in our history, 56 00:03:46,398 --> 00:03:49,798 We found a company we thought this caused a loss 57 00:03:49,801 --> 00:03:51,601 Operates illegally, uh, 58 00:03:51,602 --> 00:03:54,772 And we can make money bet against that company. 59 00:03:54,771 --> 00:03:58,511 How much money have you spent? bet against herbalife? 60 00:03:58,508 --> 00:04:01,908 Uh, we have short positions more than one billion dollars. 61 00:04:04,245 --> 00:04:06,745 On top of makeup, I'm rather a man who isn't too much. 62 00:04:06,748 --> 00:04:08,348 -Yes. -Good. 63 00:04:08,349 --> 00:04:11,549 Ackman: I have another one that is very big A brief public in my career, 64 00:04:11,552 --> 00:04:14,222 In short, this is what I took in a company called Mbia. 65 00:04:14,221 --> 00:04:18,761 We say that a company with AAA basically goes bankrupt 66 00:04:18,758 --> 00:04:21,528 Thinking that these people don't make sense The company accuses us 67 00:04:21,527 --> 00:04:22,057 From false spreads and misleading information about their business 68 00:04:22,060 --> 00:04:24,860 Mbia takes seven years so we are proven right. 69 00:04:24,862 --> 00:04:28,232 70 00:04:28,232 --> 00:04:31,202 And finally, the company collapsed during the credit crisis Due to exposure to for subprime mortgages. 71 00:04:31,201 --> 00:04:35,071 A reporter named christine richard 72 00:04:35,503 --> 00:04:36,743 On the bloomberg news Interested in the story, 73 00:04:36,738 --> 00:04:38,968 And then ends writing a book 74 00:04:38,973 --> 00:04:40,013 About my fight with mbia is called a trust game. 75 00:04:40,007 --> 00:04:42,637 And then he joined an independent research firm 76 00:04:42,642 --> 00:04:45,842 To focus on short ideas, 77 00:04:45,845 --> 00:04:48,205 The company bet against. 78 00:04:48,214 --> 00:04:49,014 And he called me someday and said, "bill, I think I have the next mbia." 79 00:04:49,014 --> 00:04:52,954 Hello. I'm Michael Johnson 80 00:04:57,354 --> 00:04:59,254 81 00:04:59,256 --> 00:05:02,256 Chairman and chief executive officer of herbalife 82 00:05:02,259 --> 00:05:05,359 And that is my pleasure to be your guide for our herbalife tours. 83 00:05:05,362 --> 00:05:10,202 In 1980, the founder of our company marked Hughes began with a dream 84 00:05:10,200 --> 00:05:12,270 The dream a mission for nutrition. 85 00:05:12,268 --> 00:05:14,368 So that people can improve themselves their health 86 00:05:14,370 --> 00:05:16,500 And also to improve their financial welfare Through our direct sales business opportunities, 87 00:05:16,505 --> 00:05:18,435 Which, we believe, is the best in our industry. 88 00:05:18,440 --> 00:05:21,740 Herbalife is a multilevel marketing company, 89 00:05:22,609 --> 00:05:24,979 Which means you can get on your own sales, 90 00:05:24,979 --> 00:05:27,749 91 00:05:27,748 --> 00:05:30,008 And if you are a supervisor or above, 92 00:05:30,016 --> 00:05:31,876 For sales that you introduce 93 00:05:31,884 --> 00:05:34,854 and sponsor directly or indirectly. 94 00:05:34,853 --> 00:05:37,753 Our products are available exclusively through you, 95 00:05:37,755 --> 00:05:40,715 Our independence herbalife distributor 96 00:05:41,056 --> 00:05:41,686 That's why we have rules 97 00:05:41,690 --> 00:05:47,060 About not selling retail stores, outlets or at auction sites. 98 00:05:54,268 --> 00:05:56,398 Christine richard: If you see it, on the surface, 99 00:05:56,404 --> 00:05:58,644 It's very wild a successful company 100 00:05:58,639 --> 00:06:02,369 Selling high prices nutritional supplements. 101 00:06:02,376 --> 00:06:04,836 But back to the 80s, 102 00:06:04,845 --> 00:06:08,475 There are questions about how the product is pitched. 103 00:06:08,481 --> 00:06:12,181 You know, extreme promises made about products, 104 00:06:12,184 --> 00:06:17,554 And of course, always promises extreme about income opportunities. 105 00:06:22,258 --> 00:06:24,788 I am truly committed to make herbalife work, 106 00:06:24,794 --> 00:06:26,434 And I like, "I will do whatever is needed. 107 00:06:26,428 --> 00:06:28,798 " whatever is needed, I will do it. " 108 00:06:33,867 --> 00:06:35,697 I will always be out fishing far below 109 00:06:35,703 --> 00:06:37,743 And I always look this house 110 00:06:37,738 --> 00:06:39,038 By decreasing stairs. 111 00:06:39,039 --> 00:06:42,339 When I grow up in herbalife, I finally buy it. 112 00:06:48,180 --> 00:06:50,610 113 00:06:50,615 --> 00:06:53,075 People leave, "what happened? That person made a living?" 114 00:06:53,084 --> 00:06:55,754 And I left, "I am an herbalife independent distributor." 115 00:06:55,753 --> 00:07:00,023 And people really amazed That's what I did. 116 00:07:00,023 --> 00:07:02,193 It's amazing quality of life. 117 00:07:03,024 --> 00:07:09,034 So far, in the past 90 days, companies have paid us over $ 15,000 part time. 118 00:07:09,031 --> 00:07:13,001 And I made it, right now, I don't believe it myself, 119 00:07:13,001 --> 00:07:15,901 More than $ 8,000 per day 120 00:07:15,903 --> 00:07:18,973 For more than $ 3,000,000 a year. 121 00:07:18,972 --> 00:07:19,702 This is amazing 122 00:07:19,706 --> 00:07:21,936 If I can do it, I have made a lot of money, 123 00:07:21,941 --> 00:07:24,471 Actually great luck, with the company, 124 00:07:24,476 --> 00:07:26,306 Someone can. That is easy. 125 00:07:27,978 --> 00:07:30,778 Richard: I think This is an incorrect tone, 126 00:07:30,781 --> 00:07:34,381 But it still exists over a decade, so... 127 00:07:34,384 --> 00:07:35,454 It looks like must be something 128 00:07:35,451 --> 00:07:39,021 That street street investor wants to look around. 129 00:07:40,154 --> 00:07:42,294 Ackman: I am right skeptical, 130 00:07:42,290 --> 00:07:43,760 That's the approach we try to take 131 00:07:43,758 --> 00:07:45,718 With any investment, long or short, 132 00:07:45,726 --> 00:07:47,756 And then Belgian courts find herbalife 133 00:07:47,761 --> 00:07:49,491 Being a pyramid scheme in 2011. 134 00:07:49,496 --> 00:07:52,956 I think it's rather materially interesting development, 135 00:07:52,966 --> 00:07:54,726 And that's what motivated research. 136 00:07:54,734 --> 00:07:59,104 And this is a case where more layers from your onions are peeled away, 137 00:07:59,105 --> 00:08:01,935 Which is more interesting, uh, it becomes. 138 00:08:02,373 --> 00:08:06,183 You follow what I say, write this, 139 00:08:06,177 --> 00:08:11,277 You will make a minimum $ 50,000 this year. 140 00:08:12,449 --> 00:08:16,979 That the least amount of money you will make 141 00:08:17,085 --> 00:08:22,015 Second year, You will generate $ 125,000, 142 00:08:22,024 --> 00:08:26,234 And that the least amount of money you will make 143 00:08:27,461 --> 00:08:30,161 Narrator: In 1986, founder marked Hughes and Herbalife 144 00:08:30,164 --> 00:08:33,174 Received a permanent order from the state of California, 145 00:08:33,167 --> 00:08:37,637 Limit them from making false income and health claims. 146 00:08:37,638 --> 00:08:41,438 Even so, companies continue to grow. 147 00:08:42,274 --> 00:08:46,044 But 14 years later, hughes was found dead in his malibu house 148 00:08:46,045 --> 00:08:49,645 Overdosage of antidepressants and alcohol. 149 00:08:49,648 --> 00:08:51,208 and a group from private investors 150 00:08:51,216 --> 00:08:54,046 Immediately take control of from herbalife 151 00:08:55,285 --> 00:08:58,315 Before listing companies in the new york stock market, 152 00:08:58,322 --> 00:09:01,922 They look for and find a new leader. 153 00:09:01,925 --> 00:09:04,055 Michael o. Johnson. 154 00:09:04,060 --> 00:09:07,430 Johnson has risen through the ranks of in Disney company 155 00:09:07,430 --> 00:09:11,100 Becoming president of disney international 156 00:09:11,100 --> 00:09:14,840 Announcer: eyes The world is in Herbalife 157 00:09:14,936 --> 00:09:20,266 We will be faster, better, stronger than before. 158 00:09:20,907 --> 00:09:21,867 Narrator: A competitive triathlon, 159 00:09:21,875 --> 00:09:28,305 Johnson's passion for fitness perfect mirror image of his new company. 160 00:09:28,479 --> 00:09:31,009 In Herbalife, he has a midas touch 161 00:09:31,015 --> 00:09:32,745 Revenue grows at astounding prices. 162 00:09:32,750 --> 00:09:38,820 From $ 1.3 billion to $ 4.8 billion in the first 10 years. 163 00:09:38,822 --> 00:09:39,822 Oh, we just started. 164 00:09:39,823 --> 00:09:42,623 We only scratch the surface of what can. 165 00:09:42,625 --> 00:09:46,485 We have not penetrated the market and society Anywhere near for what we will see 166 00:09:46,495 --> 00:09:48,625 167 00:09:48,630 --> 00:09:52,160 Narrator: Johnson does well by Herbalife and himself. 168 00:09:52,166 --> 00:09:56,496 In 2011, he was the highest paid ceo in America. 169 00:09:56,503 --> 00:10:02,373 The compensation package reaches $ 89.4 million. 170 00:10:03,975 --> 00:10:06,935 Mexican sales, up 31%. Asia Pacific, up 29%. 171 00:10:06,945 --> 00:10:11,005 India, 121%! South, Central America, 44%. 172 00:10:11,015 --> 00:10:14,145 Looks like this company is unstoppable 173 00:10:19,388 --> 00:10:23,118 You know, my mother and father are extraordinary strong influence in my life 174 00:10:23,126 --> 00:10:25,686 And integrity is the name of the game in our house 175 00:10:25,695 --> 00:10:29,325 Um, you know, if you do something wrong, have it 176 00:10:29,331 --> 00:10:31,431 Don't ever say that lie, you know, 177 00:10:31,433 --> 00:10:34,173 Because you will lose trust 178 00:10:34,169 --> 00:10:35,429 And I think What we have done here is 179 00:10:35,436 --> 00:10:38,366 We have built integrity and trust in our organization, 180 00:10:38,372 --> 00:10:40,342 In our people, in our products. 181 00:10:40,340 --> 00:10:44,410 And if I'm the ahead, lead it, okay 182 00:10:44,410 --> 00:10:47,250 You know, I will take that responsibility. 183 00:10:49,114 --> 00:10:51,724 Scott wapner: John desimone is sitting here with me 184 00:10:51,717 --> 00:10:52,917 John, nice to meet you 185 00:10:52,918 --> 00:10:53,718 John desimone: Thank you, scott 186 00:10:53,718 --> 00:10:56,948 Wapner: At this time, the invoice and more than 500 people 187 00:10:56,954 --> 00:10:58,694 It's in a theater in the middle of Manhattan. 188 00:10:58,689 --> 00:11:02,319 Bill prepares to give his newest presentation, And they watch this interview lives 189 00:11:02,325 --> 00:11:03,515 In his words, he will expose extraordinary fraud in herbalife today 190 00:11:03,526 --> 00:11:08,456 What do you expect? 191 00:11:08,464 --> 00:11:09,634 Eh, we know this is mo. This is not the first time. 192 00:11:09,631 --> 00:11:11,561 In fact, this is already 18 months always... People here... 193 00:11:11,566 --> 00:11:17,196 It's always "bark is worse than the bite." 194 00:11:17,204 --> 00:11:19,544 Uh, he made some outrageous statements He made 435 accusations over the past 18 months, 195 00:11:19,539 --> 00:11:21,239 196 00:11:21,240 --> 00:11:26,080 197 00:11:26,078 --> 00:11:31,178 Each of the newest and greatest until proven not. 198 00:11:31,183 --> 00:11:35,083 First of all, how are you? accuse herbalife? 199 00:11:35,086 --> 00:11:36,646 Being a pyramid scheme. 200 00:11:36,654 --> 00:11:38,724 We believe herbalife is a pyramid scheme. 201 00:11:38,722 --> 00:11:40,462 Explain, what is it? 202 00:11:40,457 --> 00:11:43,887 Good, Herbalife sells products, weight loss products, 203 00:11:43,893 --> 00:11:46,163 Nutritional supplements, vitamins, things like that, 204 00:11:46,161 --> 00:11:50,101 But what they actually sell and what their distributors make money from 205 00:11:50,098 --> 00:11:53,528 Is by selling what they call a business opportunity 206 00:11:53,534 --> 00:11:55,704 And the business opportunity is to sell 207 00:11:55,702 --> 00:11:57,032 Business opportunities for your friends, 208 00:11:57,036 --> 00:12:00,196 Who in turn sells business opportunities to their friends 209 00:12:01,838 --> 00:12:04,708 You register to become herbalife distributor, 210 00:12:04,708 --> 00:12:07,578 You spend $ 55 or $ 100 to get a starter kit. 211 00:12:07,577 --> 00:12:09,737 And finally you are sure to spend $ 3,000 212 00:12:09,745 --> 00:12:13,345 To buy the minimum amount of inventory you need to get 213 00:12:13,348 --> 00:12:15,578 To be a supervisor 214 00:12:15,583 --> 00:12:20,593 And you have businesses in the box that can make you lucky. 215 00:12:21,589 --> 00:12:23,189 And that's when you have the right to get royalties 216 00:12:23,190 --> 00:12:25,790 From the people below you and what is called a downline. 217 00:12:25,792 --> 00:12:27,732 These are the people You recruit. 218 00:12:27,992 --> 00:12:31,192 William remains: What produces income is a purchase. 219 00:12:31,196 --> 00:12:36,426 As products purchased from herbalife by people in your downline, 220 00:12:36,434 --> 00:12:39,804 They generate upline commission 221 00:12:40,570 --> 00:12:43,270 So when you build it your downline, 222 00:12:43,273 --> 00:12:46,873 And you recruit other people, friends, family members, coworkers, 223 00:12:46,876 --> 00:12:50,636 That is their purchase generate your commission 224 00:12:50,646 --> 00:12:53,846 The secret is to get five other people 225 00:12:53,849 --> 00:12:55,979 Doing the same thing every month. 226 00:12:55,984 --> 00:12:58,024 And teach them to get it five other people 227 00:12:58,019 --> 00:12:59,179 Doing the same thing every month. 228 00:12:59,186 --> 00:13:02,116 Before you know it, not only will you be a supervisor, 229 00:13:02,122 --> 00:13:04,092 But you must have five supervisors under you 230 00:13:04,090 --> 00:13:06,290 Who will have five supervisors under them 231 00:13:06,292 --> 00:13:08,832 Who will have five supervisors under them 232 00:13:08,827 --> 00:13:10,657 That's 155 supervisors. 233 00:13:10,662 --> 00:13:14,202 And if they each do it about 2,000 to 2,500 points volume a month, 234 00:13:14,198 --> 00:13:19,868 You will make somewhere in the neighborhood around of $ 42,000 per month. 235 00:13:19,870 --> 00:13:25,540 Take care: Actually, build downlines and products purchases are needed 236 00:13:25,542 --> 00:13:27,942 For you to qualify for income. 237 00:13:27,944 --> 00:13:32,614 So, only about 17% of all distributors 238 00:13:32,615 --> 00:13:35,245 Worth getting whatever from herbalife 239 00:13:35,250 --> 00:13:40,050 According to Herbalife income statement, of the 17%, 240 00:13:40,054 --> 00:13:44,694 We know for sure, 30% or more will get zero. 241 00:13:44,691 --> 00:13:47,531 And approximately 48% will get 242 00:13:47,527 --> 00:13:51,597 $ 1,000 or less gross income for this year 243 00:13:52,363 --> 00:13:53,633 Once we reduce costs, 244 00:13:53,631 --> 00:13:58,931 And consider that fact they must maintain purchase volume, 245 00:13:58,936 --> 00:14:02,466 The net profit can be ignored. 246 00:14:02,637 --> 00:14:06,367 Ackman: You are deceived into believing that this is a good business opportunity 247 00:14:06,375 --> 00:14:07,905 In fact, actually, you sell rocking 248 00:14:07,909 --> 00:14:10,009 For three or four times slimfast prices. 249 00:14:10,011 --> 00:14:13,211 People can buy it in their supermarket 250 00:14:13,680 --> 00:14:17,720 And that's $ 3,000, $ 4,000, $ 8,000 inventory purchases, 251 00:14:17,718 --> 00:14:21,348 The inventory is sitting in your garage that you can't sell, 252 00:14:21,354 --> 00:14:23,624 Give a salary for people 253 00:14:23,622 --> 00:14:24,922 At the very top of the pyramid 254 00:14:24,923 --> 00:14:27,723 Who has hundreds of thousands of people under them 255 00:14:27,725 --> 00:14:29,785 Top 50 herbalife distributors for 256 00:14:29,793 --> 00:14:33,733 Three, five, seven, 10-plus million dollars years. 257 00:14:33,730 --> 00:14:36,630 That's why it's robin hood reverse. 258 00:14:37,064 --> 00:14:38,034 Wapner: But he claims today, 259 00:14:38,032 --> 00:14:40,802 He has hundreds of hours of video, audio, 260 00:14:40,801 --> 00:14:43,701 Documents to support claims 261 00:14:43,703 --> 00:14:45,573 At a certain level, You have to worry. 262 00:14:45,571 --> 00:14:48,071 Desimone: I am not worried about the substance from what it has. 263 00:14:48,073 --> 00:14:51,343 This is anecdotal, It's very propaganda based. 264 00:14:51,342 --> 00:14:54,442 What he missed was that, Basically, 265 00:14:54,445 --> 00:14:56,875 We have millions of customers who enjoy the product, 266 00:14:56,880 --> 00:14:59,350 It uses products, it is irrefutable We really have an release today from ex ftc... 267 00:14:59,349 --> 00:15:01,879 Take care: What we really don't do have good information is, 268 00:15:01,884 --> 00:15:05,224 Make a purchase of herbalife translate into sales 269 00:15:05,220 --> 00:15:08,790 270 00:15:08,790 --> 00:15:13,690 Who is the Herbalife distributor? 271 00:15:13,694 --> 00:15:17,734 Or purchase herbalife a mechanism to maintain recruitment 272 00:15:17,731 --> 00:15:23,401 And maintaining the commission is not much to do with outside customers. 273 00:15:23,403 --> 00:15:27,543 What is shown by this study the majority from our distributors 274 00:15:27,540 --> 00:15:28,770 Come and become a distributor Because of their proximity to the product, 275 00:15:28,774 --> 00:15:30,314 And they want to achieve it product discounts. 276 00:15:30,308 --> 00:15:31,938 So, effective, what do they want to do? Club members, as in costco 277 00:15:31,942 --> 00:15:33,442 Lack of evidence, 278 00:15:36,212 --> 00:15:38,252 With conditions what part of the product 279 00:15:58,040 --> 00:15:40,377 280 00:15:40,382 --> 00:15:43,152 281 00:15:43,151 --> 00:15:47,151 Never leave Herbalife's distribution channel, 282 00:15:47,155 --> 00:15:49,615 Is part of criticism 283 00:15:49,624 --> 00:15:51,564 And part of the miracle about whether or not 284 00:15:51,559 --> 00:15:53,759 This company can be a pyramid scheme. 285 00:15:53,761 --> 00:15:54,261 This is the reality. 286 00:16:00,299 --> 00:16:02,629 About the product and business opportunities. 287 00:16:02,634 --> 00:16:04,474 I have never spoken to any distributor, 288 00:16:04,469 --> 00:16:09,039 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 289 00:16:23,253 --> 00:16:29,463 The tattered stories are there for everyone 290 00:16:29,460 --> 00:16:33,630 291 00:16:33,630 --> 00:16:38,370 292 00:16:38,834 --> 00:16:45,074 Herbalife has done a great job reaching to the Hispanic market. 293 00:16:45,074 --> 00:16:51,384 Low-income immigrants have hope to find a successful life here 294 00:16:51,380 --> 00:16:53,350 To establish a small business. 295 00:16:53,348 --> 00:16:57,278 Herbalife says, "yes, and that's how you will do it." 296 00:17:18,605 --> 00:17:22,105 Alright, so we will get it everyone on one side 297 00:17:22,908 --> 00:17:27,908 Julie contreras: The beginning, for me, is phillipe senor colon. 298 00:17:27,914 --> 00:17:31,524 He and his wife call me, talk about herbalife 299 00:17:31,517 --> 00:17:35,787 I don't know what it is, or understand 300 00:17:35,787 --> 00:17:40,817 When I go to his house, it is completely filled with the product. 301 00:17:40,924 --> 00:17:45,094 He has it in his living room, the kitchen... 302 00:17:45,095 --> 00:17:48,525 He has it in his basement and in his garage. 303 00:17:48,531 --> 00:17:50,931 That's what the product has 304 00:17:50,933 --> 00:17:52,703 That he can never move. 305 00:17:52,933 --> 00:17:54,773 But he continues to pay into it 306 00:17:54,769 --> 00:17:58,369 Because he was told that he would make more money. 307 00:17:58,372 --> 00:18:00,212 And he's a very ethical person. 308 00:18:00,207 --> 00:18:06,207 So he said, "I pay attention After this time, julie, that this is a scam. 309 00:18:06,213 --> 00:18:08,753 " and I want my money back, " he said. 310 00:18:09,414 --> 00:18:12,454 So I just said, " you know What? Let's hold a press conference 311 00:18:12,451 --> 00:18:15,451 "and want to see if there are more victims out there." 312 00:18:15,454 --> 00:18:20,724 And of course when we make that call, the victim responds. 313 00:18:23,627 --> 00:18:24,157 They will come here. 314 00:18:24,160 --> 00:18:27,130 They will all leave come here They will arrive soon. 315 00:18:27,129 --> 00:18:33,299 Okay, so, this is an estimate, but I will give you... 316 00:18:33,301 --> 00:18:36,301 -Contreras: Alright, that... -It's amazing. 317 00:18:36,304 --> 00:18:37,144 And they are just ordinary people, right? 318 00:18:37,138 --> 00:18:40,438 Contreras: They are ordinary people and all receipts and everything to support it. 319 00:18:40,441 --> 00:18:42,111 Jay reyes: You are really messy here. 320 00:18:45,477 --> 00:18:47,947 Contreras: Most of the groups are undocumented. 321 00:18:47,947 --> 00:18:49,277 So, they live in that insecurity. 322 00:18:49,281 --> 00:18:54,651 They are people who work very hard, people who pay taxes, 323 00:18:54,653 --> 00:18:57,323 And people who are violated. 324 00:18:57,322 --> 00:19:01,692 And they have the right to search for what they call "justicia." justice. 325 00:19:46,600 --> 00:19:47,900 Contreras: He has suffered a lot 326 00:19:47,902 --> 00:19:50,142 Because her husband keeps reminding him 327 00:19:50,137 --> 00:19:53,907 About $ 8,000 that he owes them. 328 00:21:11,716 --> 00:21:14,516 Contreras: Many immigrants migrate here for a better life, 329 00:21:14,519 --> 00:21:19,619 And if people want prey about their shortcomings knowledge and finance, 330 00:21:19,624 --> 00:21:21,824 I feel it is despicable. 331 00:21:22,058 --> 00:21:24,458 And no one does anything. 332 00:21:24,461 --> 00:21:27,201 Federal trade commission, attorney general... 333 00:21:27,197 --> 00:21:31,127 I mean, should we start? go to make a police report 334 00:23:02,822 --> 00:23:06,092 Des walsh: And another accusation is that we really go after the latino community 335 00:23:06,092 --> 00:23:10,662 Because, in some cases, this is poor, the group is not educated If the supermarket chain opens a new store 336 00:23:10,995 --> 00:23:13,595 In an area which is economically deprived, 337 00:23:13,598 --> 00:23:16,098 They cheered and clapped 338 00:23:16,100 --> 00:23:17,500 Because they carry good nutrition, 339 00:23:17,501 --> 00:23:19,171 They bring work to the community But when we support it latino community, 340 00:23:19,169 --> 00:23:20,999 341 00:23:21,004 --> 00:23:23,244 342 00:23:23,239 --> 00:23:25,409 In some ways, this is a company chasing people Who can't afford it? to make educated decisions about their nutrition 343 00:23:25,407 --> 00:23:29,337 I mean, to put it bluntly, is insulting us, 344 00:23:29,344 --> 00:23:30,914 This insults for our customers, 345 00:23:30,912 --> 00:23:31,982 Insulting entire latino community. 346 00:23:31,979 --> 00:23:34,779 Ackman: It's happened community by society 347 00:23:35,914 --> 00:23:38,084 Famous pyramid schemes pop and drop phenomena. 348 00:23:38,083 --> 00:23:41,753 They need to find new victims. 349 00:23:41,754 --> 00:23:43,394 And there is an initial explosion 350 00:23:43,388 --> 00:23:44,748 Because many people become excited about the opportunities 351 00:23:44,756 --> 00:23:47,516 Being herbalife distributor, 352 00:23:47,525 --> 00:23:48,415 And when they run out of people to recruit 353 00:23:48,425 --> 00:23:50,085 354 00:23:50,093 --> 00:23:52,393 And they find they can't sell their products, 355 00:23:52,395 --> 00:23:53,925 Uh, that's a bust. 356 00:23:53,929 --> 00:23:59,329 Robert fitzpatrick: 80%, according to their submission in 2005, 357 00:23:59,334 --> 00:24:05,974 From people who have in the scheme stopped, and replaced. 358 00:24:05,973 --> 00:24:07,813 If you add all that in five years... 359 00:24:07,808 --> 00:24:13,008 I mean, we're talking about absurd machines here, 360 00:24:13,013 --> 00:24:16,513 Rummaging Millions of people. 361 00:24:16,516 --> 00:24:20,716 Promising them this unopened uninhabited income, 362 00:24:20,720 --> 00:24:24,250 Delivering almost nothing. 363 00:24:25,923 --> 00:24:27,793 Narrator: Since it was founded in 1980, 364 00:24:27,792 --> 00:24:31,392 Herbalife has extended operations worldwide. 365 00:24:31,395 --> 00:24:34,625 Expand in 10 countries in their first decade 366 00:24:34,631 --> 00:24:38,201 For current reach from 93 countries around the world. 367 00:24:38,201 --> 00:24:41,741 Johnson: We just opened Vietnam this week, fantastic Why it's important Are people in Vietnam... 368 00:24:41,737 --> 00:24:43,937 Do they want supplements? What do they know 369 00:24:43,939 --> 00:24:46,839 I mean, I'm not demeaning Vietnam, 370 00:24:46,841 --> 00:24:47,641 But I say, how do you convince them that this is right for them? 371 00:24:47,641 --> 00:24:50,981 Well, that company recent success 372 00:24:50,977 --> 00:24:53,137 Has been built on daily consumption. This is food. 373 00:24:53,145 --> 00:24:55,345 Vitamins, great nutrition, good minerals, carbohydrates, 374 00:24:55,347 --> 00:24:58,547 375 00:24:58,550 --> 00:24:59,780 Protein, all that. 376 00:24:59,784 --> 00:25:01,184 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 377 00:25:01,185 --> 00:25:06,685 So, we have this two-way street, 378 00:25:06,690 --> 00:25:08,490 Health and wealth. Great meal, good business opportunity 379 00:25:08,491 --> 00:25:09,721 Fitzpatrick: If they can grow globally, go to new markets... 380 00:25:09,725 --> 00:25:13,185 China, 1.3 billion people there, 381 00:25:13,195 --> 00:25:16,555 Latin immigrants into us... 382 00:25:16,565 --> 00:25:19,895 This will keep that maintained for a little longer. 383 00:25:19,901 --> 00:25:22,771 How long can they go? No one knows. 384 00:25:22,770 --> 00:25:27,470 385 00:25:27,474 --> 00:25:30,744 386 00:25:33,044 --> 00:25:34,884 Is there anything we can do? for capacity? 387 00:25:34,880 --> 00:25:36,610 We must be prepared for one million people. 388 00:25:36,615 --> 00:25:39,545 We are ready for for one million people. I do everything I can. 389 00:25:39,551 --> 00:25:42,021 We have all three servers Bright now. 390 00:25:42,020 --> 00:25:45,290 William Cohan: Bill Ackman is in a holy war. 391 00:25:45,388 --> 00:25:49,288 Now, he might end up wrong about herbalife 392 00:25:49,292 --> 00:25:52,392 Have you ever tried herbalife products? 393 00:25:53,161 --> 00:25:54,561 Ackman: sip. 394 00:25:54,563 --> 00:25:56,263 I've really heard it very negative thing 395 00:25:56,264 --> 00:25:57,564 About manufacturing processes. 396 00:25:57,565 --> 00:26:00,865 - I live far from that 397 00:26:00,868 --> 00:26:01,798 Cohan: I mean, here it is 398 00:26:01,802 --> 00:26:04,702 Who is one is getting older before, uh, confident, 399 00:26:04,704 --> 00:26:09,114 Some people will say it arrogant, activist investor on the wall of the road 400 00:26:09,108 --> 00:26:11,938 He makes himself a lot of money, 401 00:26:11,944 --> 00:26:14,014 He spends a lot of money. 402 00:26:14,012 --> 00:26:18,482 Private jets, beautiful apartments, homes in hamptons. 403 00:26:18,483 --> 00:26:22,353 He is a master exploit from the media. 404 00:26:22,353 --> 00:26:25,823 People like to have it, he always makes good copies, 405 00:26:25,823 --> 00:26:29,833 And he changed the copy into wealth for himself. 406 00:26:29,827 --> 00:26:34,257 And that, frankly, a brilliant strategy 407 00:26:34,264 --> 00:26:37,534 Uh, look, p & g one of the great companies of all time 408 00:26:37,533 --> 00:26:39,603 Richard: I remember just sitting on my desk, 409 00:26:39,601 --> 00:26:41,771 After more than one year of research, 410 00:26:41,769 --> 00:26:44,839 Bill is being being interviewed about something really different... 411 00:26:44,838 --> 00:26:45,968 And I'm sure they will do it the right thing. 412 00:26:45,972 --> 00:26:49,342 Quickly sound, you teased in the sky investment conference yesterday 413 00:26:49,342 --> 00:26:51,212 -That's what you have short positions. -Yes. 414 00:26:51,210 --> 00:26:52,540 Secret position. -Yes. 415 00:26:52,544 --> 00:26:54,514 Do you want to share secrets with us 416 00:26:54,512 --> 00:26:54,782 Not yet. 417 00:26:54,778 --> 00:26:57,108 I'm sure he knows very well You put this idea out there 418 00:26:57,113 --> 00:27:00,083 Everyone wants to know, "Is this short?" 419 00:27:00,082 --> 00:27:02,022 -I can't say it. -We have to go to an ad. 420 00:27:02,017 --> 00:27:03,217 I can't, I like to talk about it 421 00:27:03,218 --> 00:27:05,078 When we are ready to talk about it 422 00:27:05,452 --> 00:27:07,552 This is good for America. 423 00:27:07,555 --> 00:27:08,345 What I mean by that is, 424 00:27:08,355 --> 00:27:09,915 As soon as companies go out of business, 425 00:27:09,923 --> 00:27:12,063 Country will be better 426 00:27:12,058 --> 00:27:12,758 Ackman: short selling. 427 00:27:12,758 --> 00:27:18,258 Imagine for a moment your friend collect rare coins 428 00:27:18,263 --> 00:27:22,303 And you have that view the coin will go down in value 429 00:27:22,300 --> 00:27:25,300 So, as you wish shorten the coin 430 00:27:25,303 --> 00:27:26,543 Do you call your friend? and say, 431 00:27:26,537 --> 00:27:29,437 "may I borrow some of your coins?" 432 00:27:29,439 --> 00:27:31,009 And he said, "Sure." 433 00:27:31,007 --> 00:27:32,637 And you borrow coins, 434 00:27:32,641 --> 00:27:35,481 You then sell it for $ 1,000 each They sell to the market at that time, 435 00:27:35,477 --> 00:27:38,377 And then you wait for them for impairment, 436 00:27:38,379 --> 00:27:39,879 And it turns out you really and coins dropped in value to $ 500 437 00:27:39,880 --> 00:27:43,550 You go back to the market, you bought it back for $ 500 438 00:27:43,550 --> 00:27:47,180 You have sold it for $ 1,000, You have repurchased them for $ 500, 439 00:27:47,186 --> 00:27:51,046 You have made $ 500 for each coin, 440 00:27:51,056 --> 00:27:52,916 441 00:27:52,924 --> 00:27:54,664 And then return the coins to your friend 442 00:27:54,659 --> 00:27:56,889 Your friend the same place he when he starts 443 00:27:56,894 --> 00:27:58,764 And he has the same coin that he started with. 444 00:27:58,762 --> 00:28:01,432 You might have to really pay him something to borrow a coin, 445 00:28:01,431 --> 00:28:03,961 Because he lent it to you, so you might pay it the interest rate. 446 00:28:03,966 --> 00:28:08,126 So he is happy because he is interested loan you coins, 447 00:28:08,136 --> 00:28:11,596 You have made money from decreasing value of coins, 448 00:28:11,606 --> 00:28:13,436 And that's short selling. 449 00:28:13,441 --> 00:28:14,341 That's when the results. 450 00:28:14,341 --> 00:28:18,181 But if you sell it with high prices and it goes higher, 451 00:28:18,178 --> 00:28:19,778 And that can go much higher, 452 00:28:19,779 --> 00:28:22,879 Because the stock can go is much higher, 453 00:28:22,882 --> 00:28:24,982 Then you are hooked for that. 454 00:28:24,984 --> 00:28:28,994 So, this is why large cojones are needed for short stocks. 455 00:28:28,988 --> 00:28:35,288 Especially something as public and as big as herbalife. 456 00:28:36,360 --> 00:28:40,000 Narrator: At the end of 2012, ackman got on stage 457 00:28:39,997 --> 00:28:42,857 For the first time to reveal the secret, 458 00:28:42,866 --> 00:28:44,126 Good-for-america is short. 459 00:28:44,133 --> 00:28:45,303 Just want to show some things. 460 00:28:45,300 --> 00:28:47,000 We are short stock herbalife. 461 00:28:47,001 --> 00:28:49,131 Stock Herbalife goes down, we make money 462 00:28:49,136 --> 00:28:50,566 Stock Herbalife rises, we lose money 463 00:28:50,570 --> 00:28:56,270 Cohan: December 2012 The presentation of 300 pages is very detailed 464 00:28:56,275 --> 00:28:57,205 This is amazing. 465 00:28:57,209 --> 00:29:00,839 Ackman: One percent gets 88% from the reward. 466 00:29:00,845 --> 00:29:03,175 Cohan: When he was an advocate for an idea, 467 00:29:03,180 --> 00:29:05,480 He can sell ice to eskimos 468 00:29:05,482 --> 00:29:07,112 Ackman: Recruiting awards is much greater From the retail profits they generate 469 00:29:07,116 --> 00:29:09,816 You can lose a lot money becomes short 470 00:29:09,818 --> 00:29:11,848 So, to be brief pyramid scheme 471 00:29:11,853 --> 00:29:13,593 Like herbalife and not killed, 472 00:29:13,588 --> 00:29:15,148 You must be ready to do it share your thoughts with the public. 473 00:29:15,156 --> 00:29:18,916 Let's go like this, 474 00:29:18,926 --> 00:29:19,456 475 00:29:19,459 --> 00:29:22,559 This is the best pyramid scheme in world history. 476 00:29:22,562 --> 00:29:24,262 Mr. Johnson must get it lots of credit for that 477 00:29:24,263 --> 00:29:29,103 Male reporter: there Herbalife stock drops 14.6%. Ackman news bills... 478 00:29:29,101 --> 00:29:30,431 Richard: Amazing reaction. 479 00:29:30,435 --> 00:29:33,295 I mean, it feels like, "Wow, people have come out. 480 00:29:33,304 --> 00:29:36,174 " They have seen something make them scared. " 481 00:29:36,173 --> 00:29:38,343 Johnson: These people listen to a report 482 00:29:38,341 --> 00:29:41,881 It is generated by a research firm in new york 483 00:29:41,877 --> 00:29:43,737 And we send it official letter 484 00:29:43,745 --> 00:29:45,975 This is a silly statement 485 00:29:45,980 --> 00:29:49,880 By people who is trying to manipulate our stocks. 486 00:29:50,215 --> 00:29:51,245 Reporter: What will you say? for those who say 487 00:29:51,250 --> 00:29:55,190 You are trying to manipulate the success of the company 488 00:29:55,187 --> 00:29:57,417 -And therefore stock price? -Wrong. 489 00:29:57,422 --> 00:29:59,292 We only want the truth to get out 490 00:29:59,290 --> 00:30:02,490 The moral argument he is making 491 00:30:02,493 --> 00:30:05,563 Very harmonious with its financial interests, 492 00:30:05,562 --> 00:30:09,162 And that's why he can see it like he is more holy than you. 493 00:30:09,165 --> 00:30:11,425 If you succeed, you will do it donate the money, 494 00:30:11,433 --> 00:30:13,433 Speaking of which, for charity, you say. 495 00:30:13,435 --> 00:30:15,065 You call it "blood money". 496 00:30:15,069 --> 00:30:16,199 - Yes. -Because? 497 00:30:16,203 --> 00:30:17,573 Everyone says, "OK, you can't believe 498 00:30:17,571 --> 00:30:19,741 " what he said because he lacked stock 499 00:30:19,739 --> 00:30:22,269 "and he will benefit from this. You can't believe it." 500 00:30:22,274 --> 00:30:26,414 I see, by taking economic parts from my investment, 501 00:30:26,411 --> 00:30:27,541 I.E., give the money, 502 00:30:27,545 --> 00:30:29,645 It's more difficult for them to make that argument 503 00:30:29,647 --> 00:30:31,147 You know, I'm a moral person, 504 00:30:31,148 --> 00:30:33,348 But we, once again, manage capital for others, 505 00:30:33,350 --> 00:30:37,090 And that is actually for the best interest from our investors 506 00:30:37,087 --> 00:30:40,487 So that we can bet against companies it causes danger 507 00:30:40,490 --> 00:30:41,990 Therefore type of company 508 00:30:41,991 --> 00:30:43,461 That's government and regulator 509 00:30:43,459 --> 00:30:47,189 It will be more likely to take action against 510 00:30:52,133 --> 00:30:56,503 Narrator: Now, two years after the first herbalife presentation, 511 00:30:56,505 --> 00:30:58,395 Ackman is set to make more revelations 512 00:30:58,406 --> 00:31:02,306 He is sure to do it gives a dead punch to the company 513 00:31:02,309 --> 00:31:05,209 All poor people are being exploited. 514 00:31:05,211 --> 00:31:07,241 The fraud knows no limits. 515 00:31:07,246 --> 00:31:07,776 Yes, this is amazing. 516 00:31:07,779 --> 00:31:12,249 Four hours later, we are done with it, good presentation, 517 00:31:12,250 --> 00:31:13,850 And some genius in the audience 518 00:31:13,851 --> 00:31:16,081 Look at the stock and it goes up. 519 00:31:16,086 --> 00:31:16,676 What is our response 520 00:31:16,686 --> 00:31:21,686 This is irrelevant It doesn't go up though. No problem. 521 00:31:21,691 --> 00:31:23,121 Question will it open again 522 00:31:23,125 --> 00:31:26,685 Jon Silvan: What can we come up with? up with other than irrelevant? Something. 523 00:31:26,695 --> 00:31:28,655 Stock does not rise. 524 00:31:29,362 --> 00:31:30,102 This is certainty. 525 00:31:30,097 --> 00:31:33,157 Stock is not relevant, but it does not go up. 526 00:31:41,473 --> 00:31:44,483 Ackman: we will expose an extraordinary fraud 527 00:31:44,477 --> 00:31:46,237 On the road they basically operate. 528 00:31:46,245 --> 00:31:47,135 This is called nutrition club 529 00:31:47,145 --> 00:31:49,575 Where they talk about places so people can gather 530 00:31:49,580 --> 00:31:51,280 And learn about good nutrition and lose weight, 531 00:31:51,281 --> 00:31:53,381 That's not what happened in this place 532 00:31:53,383 --> 00:31:57,053 Women: women and men, welcome... 533 00:31:57,053 --> 00:31:57,383 Thank you. 534 00:31:57,386 --> 00:32:02,616 ... Founder and CEO pershing Square Capital Management, Father. Bill ackman. 535 00:32:10,496 --> 00:32:13,726 Richard: At the nutrition club, Herbalife has a story. 536 00:32:13,733 --> 00:32:15,373 It's very eager to tell that story 537 00:32:15,367 --> 00:32:19,067 After Bill did it work after the company. 538 00:32:19,070 --> 00:32:20,870 Announcer: Herbalife fitness and nutrition club 539 00:32:20,872 --> 00:32:25,142 Is at the heart of how Herbalife helps people change their lives 540 00:32:25,142 --> 00:32:31,512 When so many people in the United States obesity and being overweight, 541 00:32:31,515 --> 00:32:33,775 And in the latino community, 542 00:32:33,783 --> 00:32:37,353 Where these percentages are even higher 543 00:32:37,353 --> 00:32:39,123 From the national average, 544 00:32:39,121 --> 00:32:43,591 What matters is that is a company like Herbalife 545 00:32:43,592 --> 00:32:47,632 To send messages that we need to change our eating habits, 546 00:32:47,629 --> 00:32:50,199 It needs to be changed our lifestyle 547 00:33:00,774 --> 00:33:03,484 Richard: At first I couldn't understand how it works 548 00:33:03,477 --> 00:33:11,177 How are low-income people? find the source to run this club? 549 00:33:11,716 --> 00:33:17,086 And so, several times, go to go see some of these nutrition clubs. 550 00:33:17,089 --> 00:33:20,789 I noticed in the queen, Herbalife has a lot. 551 00:33:20,792 --> 00:33:26,832 This is a population of immigrants from mexico and guatemala and ecuador. 552 00:33:27,831 --> 00:33:28,931 You have to find to find it. 553 00:33:28,933 --> 00:33:31,773 If you stand Right in front of it, You can almost miss it. 554 00:33:31,769 --> 00:33:36,609 Small small shops with green curtains cover the window 555 00:33:37,840 --> 00:33:41,480 There is no sign that says this is an herbalife club, 556 00:33:41,477 --> 00:33:44,107 Or operating hours. 557 00:33:44,112 --> 00:33:44,382 Hello. 558 00:33:44,378 --> 00:33:49,148 They should be clubs, they are not supposed to be retail companies. 559 00:33:51,517 --> 00:33:55,047 It costs you $ 5,000 to $ 6,000, sometimes something is bigger than that, 560 00:33:55,054 --> 00:33:58,024 To open one of these things, in the case of start up costs. 561 00:33:58,023 --> 00:33:59,023 The rule is is quite interesting 562 00:33:59,024 --> 00:34:01,624 You are not permitted to display company name, logo, 563 00:34:01,626 --> 00:34:02,786 Or his words "nutrition club" or "vibrate" 564 00:34:02,793 --> 00:34:06,563 Or there are implications of that This is an herbalife business, outside. 565 00:34:06,563 --> 00:34:08,763 You can't advertise and you can't promote. 566 00:34:08,765 --> 00:34:12,295 You are not permitted to attract customers. 567 00:34:14,001 --> 00:34:16,341 Richard: Can I tremble, can I buy a shake? 568 00:34:16,337 --> 00:34:16,897 Man: who are you 569 00:34:16,904 --> 00:34:19,074 Richard: I'm doing research. Humans: Research? 570 00:34:19,072 --> 00:34:22,412 -Yeah, I'm not a member. -Okay, take a seat. 571 00:34:22,408 --> 00:34:25,308 Richard: You enter and pay $ 5 per day. 572 00:34:25,310 --> 00:34:29,280 They will serve you protein shake, formula one... 573 00:34:29,280 --> 00:34:34,320 You also drink aloe vera water and you drink herbal tea. 574 00:34:34,684 --> 00:34:38,224 So, we see the economy of the 10 nutrition clubs And we told people to sit outside, 575 00:34:38,221 --> 00:34:39,951 Track traffic trends, people enter and exit... 576 00:34:39,956 --> 00:34:41,856 We know what rent is, how big they are, how often they open, 577 00:34:41,857 --> 00:34:44,617 Estimate utility costs, start-up costs, inventory costs to serve... 578 00:34:44,626 --> 00:34:49,896 When you do math, you know, 579 00:34:49,897 --> 00:34:51,157 Your average club, this is 10 we go into the queen, 580 00:34:51,164 --> 00:34:54,804 Losing $ 12,000 a year. 581 00:34:54,800 --> 00:34:56,800 This doesn't seem to be very good business models and this was before 582 00:34:56,802 --> 00:35:01,472 Paying for that person who is running the club 583 00:35:01,473 --> 00:35:04,273 584 00:35:04,275 --> 00:35:07,335 How do they make money? 585 00:35:07,344 --> 00:35:09,214 Well, tell them It's not about vibration, 586 00:35:09,212 --> 00:35:11,512 It's about something they call duplication 587 00:35:11,514 --> 00:35:13,184 Let's listen from horse mouth 588 00:35:13,182 --> 00:35:18,922 Even now because, friend, where your money is made does not serve smoothies 589 00:35:18,921 --> 00:35:23,321 Where your money is made has hundreds or tens 590 00:35:23,325 --> 00:35:27,685 or thousands of distributers around the world. 591 00:35:28,028 --> 00:35:31,158 Here is a presentation from how nutrition club works 592 00:35:31,165 --> 00:35:34,195 From one of the top distributors 593 00:35:34,201 --> 00:35:35,501 Important to remember, operators need to be aware of 594 00:35:35,502 --> 00:35:38,072 The ultimate goal is not how many $ 4 services they sell each day 595 00:35:38,071 --> 00:35:41,271 Such is not the way for them to achieve their financial goals. 596 00:35:41,274 --> 00:35:44,114 Rather than upgrading consumers to become customers 597 00:35:44,110 --> 00:35:44,780 And finally become a distributor. 598 00:35:44,777 --> 00:35:48,847 And finally have distributors become operators who will duplicate 599 00:35:48,847 --> 00:35:50,177 Nutrition club method. 600 00:35:50,181 --> 00:35:55,851 Notice, "duplicate again and again and again!" 601 00:36:00,823 --> 00:36:04,863 This was before an herbalife nutrition club. 602 00:36:08,263 --> 00:36:10,733 Yes, so this is reversed. 603 00:36:12,834 --> 00:36:15,304 So, the last four clubs are here 604 00:36:15,304 --> 00:36:18,314 A year and a half ago is no longer a club. 605 00:36:18,307 --> 00:36:21,407 Too many in one environment. 606 00:36:22,510 --> 00:36:23,640 Reporter: And what you say to your criticism, 607 00:36:23,645 --> 00:36:26,045 Who says, "yes, but most of you your distributor 608 00:36:26,047 --> 00:36:27,047 " don't make money, 609 00:36:27,048 --> 00:36:28,208 "They make less than of 1,000 dollars 610 00:36:28,215 --> 00:36:29,945 " in full year and no commission in a year? " 611 00:36:29,950 --> 00:36:34,120 I would say 1,000 dollars? That is a lot of money for many people This is this elitist don't, 612 00:36:34,120 --> 00:36:36,790 That most people come here for part-time income to recruit someone or build an organization, 613 00:36:36,789 --> 00:36:38,759 We know all the numbers. 614 00:36:38,757 --> 00:36:42,427 Richard: Herbalife lawyers will tell you that 615 00:36:42,427 --> 00:36:44,127 Everyone appoints for disclosure 616 00:36:44,293 --> 00:36:45,963 617 00:36:45,962 --> 00:36:48,432 618 00:36:48,431 --> 00:36:52,431 But when you see how to sell it, people to people 619 00:36:52,435 --> 00:36:55,235 There is a very smart system it goes 620 00:36:55,237 --> 00:36:59,137 Continuously the group of newly refurbished people to enter business. 621 00:36:59,140 --> 00:37:01,910 - broadcast: Women and men, 622 00:37:01,909 --> 00:37:06,039 Welcome to herbalife extravaganza... 623 00:37:06,046 --> 00:37:10,776 Richard: It's about a promise that you will succeed to the presidential team 624 00:37:10,784 --> 00:37:11,284 Man: I promise, 625 00:37:11,284 --> 00:37:16,054 If someone who is homeless, is missing the inside can do it, 626 00:37:16,055 --> 00:37:18,455 Everyone last breathes, 627 00:37:18,457 --> 00:37:22,757 With heart beats born from a mother and a father 628 00:37:22,761 --> 00:37:25,191 Can do the same thing. 629 00:37:25,196 --> 00:37:26,996 And they see this distributor is put on stage 630 00:37:26,997 --> 00:37:28,527 In this extravaganza and they have 631 00:37:28,531 --> 00:37:31,771 Pin with diamonds on it and that's the dream of America. 632 00:37:31,767 --> 00:37:34,567 And the presidential team, it's basically 633 00:37:34,569 --> 00:37:37,299 Half a million dollars a year for the rest of your life. 634 00:37:37,305 --> 00:37:42,435 That is a thousand large out of about 3.9 million distributors 635 00:37:42,443 --> 00:37:44,383 Richard: All right. Thank you very much. 636 00:37:44,378 --> 00:37:47,878 Richard: So, This club I entered, they said to me, 637 00:37:47,881 --> 00:37:52,921 "back in two years and I will continue the presidential team." 638 00:37:53,051 --> 00:37:58,061 You really want the person you meet at this club is successful. 639 00:37:58,057 --> 00:38:02,257 You know, and it looks like is so sincere and hopeful, 640 00:38:02,261 --> 00:38:03,691 But you know the club doesn't survive 641 00:38:03,695 --> 00:38:06,325 And I think they take individual life savings When are they they are sure to believe in this idea 642 00:38:06,330 --> 00:38:09,860 And this business opportunity. 643 00:38:09,866 --> 00:38:12,926 This is a great opportunity for anyone, everyone 644 00:38:15,670 --> 00:38:18,810 And latinos reach it's a little stronger 645 00:38:18,807 --> 00:38:21,937 "I improve my life now, I make people healthier and better." 646 00:38:24,779 --> 00:38:29,209 Their stories are true stories, You know on Disney, 647 00:38:29,216 --> 00:38:32,176 We sell stories and we tell and we are really great at that. 648 00:38:32,185 --> 00:38:35,715 649 00:38:35,721 --> 00:38:37,551 Here we make stories. 650 00:38:42,960 --> 00:38:46,330 Take care: The illegal way pyramid scheme works, 651 00:38:46,331 --> 00:38:49,671 -based success is almost exclusively 652 00:38:49,667 --> 00:38:53,037 In the ability of to continue to recruit other people. 653 00:38:53,202 --> 00:38:57,212 New recruits enter into the bottom of the pyramid 654 00:38:57,207 --> 00:39:01,037 And whenever we stop recruitment process 655 00:39:01,044 --> 00:39:07,314 We found it, those people at a lower level there is no way to earn income 656 00:39:07,548 --> 00:39:12,148 Probability decreased success like the number of people joining 657 00:39:12,153 --> 00:39:14,393 And we can prove it mathematically 658 00:39:14,388 --> 00:39:19,918 That 95% of these people really have to lose their money 659 00:39:21,259 --> 00:39:24,029 Fitzpatrick: Multilevel marketing Present this 660 00:39:24,029 --> 00:39:27,429 As usual business competition 661 00:39:27,798 --> 00:39:28,198 For example, 662 00:39:28,199 --> 00:39:32,399 20 people enter the field, they will all go sell this product, 663 00:39:32,403 --> 00:39:35,203 Only one might be a successful person. 664 00:39:35,205 --> 00:39:38,865 And the other 19 just don't have what they need 665 00:39:39,574 --> 00:39:40,444 We all understand that. 666 00:39:40,442 --> 00:39:44,512 You go through this in sports, You pass it at school, 667 00:39:44,512 --> 00:39:47,682 Then you enter business world 668 00:39:47,946 --> 00:39:51,346 Competition. That's not what happened. 669 00:39:51,350 --> 00:39:54,050 This is something completely different This is money transfer scheme, 670 00:39:54,684 --> 00:39:56,854 Where is managed to get 19 671 00:39:56,853 --> 00:39:59,253 672 00:39:59,255 --> 00:40:03,355 Give him their money 673 00:40:10,832 --> 00:40:12,132 We are here 674 00:40:12,134 --> 00:40:16,344 In my office, my construction office I'm sitting my office when 675 00:40:16,338 --> 00:40:18,808 Herbalife people come to knock on my door 676 00:40:18,807 --> 00:40:21,767 He starts showing me products, 677 00:40:21,776 --> 00:40:23,936 He starts preparing me things... 678 00:40:23,944 --> 00:40:26,644 Uh, tea... 679 00:40:27,178 --> 00:40:29,408 Shake... 680 00:40:30,781 --> 00:40:32,211 And they told me, they make a lot of money 681 00:40:32,415 --> 00:40:36,345 $ 20,000, $ 80,000 a month. 682 00:40:36,353 --> 00:40:39,623 So, that is something to think a little. 683 00:40:39,887 --> 00:40:43,317 Help many people... 684 00:40:43,324 --> 00:40:45,424 Do an easy job... 685 00:40:46,392 --> 00:40:48,462 Not dangerous anymore, so that's why 686 00:40:49,127 --> 00:40:51,457 687 00:40:51,463 --> 00:40:56,003 I started switching my construction business for herbalife 688 00:41:01,971 --> 00:41:04,141 So, I opened the club, 689 00:41:04,140 --> 00:41:07,510 Buy thousands of dollar products. 690 00:41:09,010 --> 00:41:11,380 I feel, "I found herbalife, 691 00:41:11,380 --> 00:41:13,850 " the best company in the world. " 692 00:41:15,316 --> 00:41:18,616 and my upline, miguel ruchiman, 693 00:41:18,620 --> 00:41:21,050 He helped me improve that place. 694 00:41:21,055 --> 00:41:24,715 Whatever I need to open the club 695 00:41:25,057 --> 00:41:27,857 Like people can dream, you know? 696 00:41:30,461 --> 00:41:31,531 Good environment here. 697 00:41:31,529 --> 00:41:35,899 There are many Hispanic people, they come to my club 698 00:41:36,332 --> 00:41:41,772 I try to do my best for people, I don't encourage them 699 00:41:41,771 --> 00:41:47,041 To take products, I just let them to... 700 00:41:47,875 --> 00:41:50,775 To taste... To rest... 701 00:41:50,778 --> 00:41:53,248 To speak at my place... 702 00:41:53,479 --> 00:41:56,009 To start liking the place. 703 00:41:57,115 --> 00:42:01,645 This is my club, nutrition club here I see... 704 00:42:02,252 --> 00:42:03,692 From here, all the way, That is a big front 705 00:42:04,020 --> 00:42:08,920 From my business 706 00:42:09,090 --> 00:42:10,790 My Upline told me, 707 00:42:12,392 --> 00:42:14,562 "the more you spend the more you will make." 708 00:42:14,561 --> 00:42:19,261 That's the problem 709 00:42:20,732 --> 00:42:23,032 That makes me feel very sad, 710 00:42:23,367 --> 00:42:26,937 Because I trust this person. 711 00:42:26,938 --> 00:42:29,868 That's what I thought he was my friend 712 00:42:29,874 --> 00:42:33,384 713 00:42:33,377 --> 00:42:39,247 Our business opportunity comes from the sale of our products. 714 00:42:39,249 --> 00:42:42,619 If I sponsor or recruit 1,000 people, 715 00:42:42,619 --> 00:42:43,379 I accept zero for that. 716 00:42:43,386 --> 00:42:47,346 I just started making money from my downline, as we call it, 717 00:42:47,356 --> 00:42:50,716 Only based on sales of products or consumption. 718 00:42:51,459 --> 00:42:56,629 Julio ulloa: I am aware in four months I not make money 719 00:42:56,631 --> 00:42:58,101 He lied to me. 720 00:42:58,298 --> 00:43:01,698 He is only interested 721 00:43:02,134 --> 00:43:04,034 Makes me spend all my money 722 00:43:04,036 --> 00:43:08,196 Because indeed get a commission 723 00:43:08,471 --> 00:43:10,511 That's what I realized. 724 00:43:10,507 --> 00:43:12,907 So, one day what I do... 725 00:43:13,842 --> 00:43:16,082 I turn everything off. 726 00:43:16,243 --> 00:43:18,313 Hot water for tea... 727 00:43:18,312 --> 00:43:20,212 I put a blender on one side, 728 00:43:20,213 --> 00:43:24,383 Everything, I cover everything, Then I lock this door. 729 00:43:25,316 --> 00:43:27,176 I locked this door, 730 00:43:27,185 --> 00:43:29,115 And just escaped. 731 00:43:29,385 --> 00:43:33,685 I say, "no more. There is no more herbalife." 732 00:43:41,763 --> 00:43:42,703 I lost a lot. 733 00:43:42,698 --> 00:43:48,268 I lost my money I had to maintain my construction the company runs 734 00:43:56,176 --> 00:43:58,806 This is miguel ruchiman club 735 00:43:58,812 --> 00:44:02,352 This is what told me, this is the best business. 736 00:44:03,181 --> 00:44:05,021 Look, he's there. 737 00:44:09,453 --> 00:44:11,523 Yes, that's it. 738 00:44:23,499 --> 00:44:26,329 They take my dream, 739 00:44:26,336 --> 00:44:29,766 My hope to be successful. 740 00:44:43,084 --> 00:44:45,254 Narrator: It was only a few weeks after that Bill announced He is shorted stock herbalife, 741 00:44:45,253 --> 00:44:46,653 Other wall paths heavyweight jump into the fray 742 00:44:46,654 --> 00:44:50,094 Dramatically change properties from ackman campaign 743 00:44:50,090 --> 00:44:54,060 Paul vigna: Herbalife has run out far more in pre-market. 744 00:44:54,060 --> 00:44:57,560 Why are they so many? 745 00:44:57,563 --> 00:44:58,533 Because it's not good, the famous hedge fund trader 746 00:44:58,530 --> 00:45:01,600 Has been taken large shares in the company. 747 00:45:01,599 --> 00:45:04,129 Why did he do it? 748 00:45:04,134 --> 00:45:05,034 It seems like that he did it quite a lot Because he hated Bill Kelly. 749 00:45:05,034 --> 00:45:09,144 750 00:45:09,138 --> 00:45:10,898 Carl icahn: most guys on wall street, 751 00:45:10,906 --> 00:45:12,706 I like and I get along. 752 00:45:12,707 --> 00:45:14,367 And it's no secret, I don't like ackman. 753 00:45:14,375 --> 00:45:18,135 I don't respect him and I don't like him and it's not a secret. 754 00:45:18,145 --> 00:45:20,675 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 755 00:45:20,680 --> 00:45:22,950 When the bill is fair out of diapers 756 00:45:22,948 --> 00:45:26,118 He basically can buy this company 757 00:45:26,117 --> 00:45:28,947 And really fair destroy short ackman 758 00:45:28,953 --> 00:45:32,593 Icahn: As far as I know, 759 00:45:32,589 --> 00:45:34,819 760 00:45:34,824 --> 00:45:36,564 761 00:45:36,559 --> 00:45:39,129 He wants to have once dinner with me, I have dinner with him, 762 00:45:39,128 --> 00:45:42,798 And I have to tell you, I'm leaving. I don't know if he is 763 00:45:42,798 --> 00:45:48,298 The holiest man I have ever met in my life or the most arrogant 764 00:45:49,002 --> 00:45:52,202 Cohan: Ten years before, they had invested in an agreement. 765 00:45:52,206 --> 00:45:56,236 Bill Ackman finally sued for $ 10,000,000 766 00:45:56,243 --> 00:45:58,713 That's what he thinks because it owes him. 767 00:45:58,712 --> 00:45:59,882 Ackman: he's a nuisance, okay 768 00:45:59,879 --> 00:46:02,349 I don't enter very good place in my business career 769 00:46:02,348 --> 00:46:03,708 And why don't you think, you know what, 770 00:46:03,716 --> 00:46:06,046 This person is the way to kill on the hedge fund highway. 771 00:46:06,051 --> 00:46:08,551 I won't need to worry about this child again So, I won't pay it. 772 00:46:08,553 --> 00:46:10,823 They go to court and they win 773 00:46:11,353 --> 00:46:13,223 And icahn finally has to do it pay him this $ 10,000,000, 774 00:46:13,222 --> 00:46:16,592 Which is like nickel and dimes for these people. 775 00:46:16,592 --> 00:46:19,332 Icahn: and I say, 776 00:46:19,328 --> 00:46:20,358 He is like a baby on the school yard, 777 00:46:20,362 --> 00:46:21,732 You know I go to a difficult school in that queen 778 00:46:21,730 --> 00:46:24,760 They usually beat little little boys 779 00:46:24,766 --> 00:46:26,226 And he is like one of these few Jewish boys cry 780 00:46:26,234 --> 00:46:29,004 781 00:46:29,003 --> 00:46:31,743 That world takes advantage of it 782 00:46:31,739 --> 00:46:33,509 You know, It's like in an old song 783 00:46:33,507 --> 00:46:36,407 You regret that day I've met that man. 784 00:46:37,809 --> 00:46:40,739 Cohan: For 10 years, they can't stand with each other. 785 00:46:40,746 --> 00:46:45,316 This kind of expresses itself when I see a technical opportunity 786 00:46:45,317 --> 00:46:50,047 Placing what is called a "short squeeze" to the ackman bill 787 00:46:50,055 --> 00:46:52,685 Some people say this The last short stretch, 788 00:46:52,690 --> 00:46:53,690 We have stock now, 789 00:46:53,691 --> 00:46:56,061 This is up 20% year on year. 790 00:46:56,060 --> 00:46:58,090 Icahn: ackman has given us 791 00:46:58,095 --> 00:47:01,995 An opportunity to buy a company at a discounted price. 792 00:47:01,998 --> 00:47:04,828 And for that, I thank him actually. 793 00:47:04,834 --> 00:47:08,574 Again, the worst thing is for short sellers 794 00:47:08,571 --> 00:47:09,901 Is when stock rises 795 00:47:09,905 --> 00:47:14,365 Because the stock can go infinite, theoretically. 796 00:47:14,376 --> 00:47:18,376 That will only make A big loss. 797 00:47:18,579 --> 00:47:19,249 Why do stocks rise? 798 00:47:19,247 --> 00:47:24,377 Just because I don't know and others have promoted it, that's why. 799 00:47:24,385 --> 00:47:24,775 Finally... 800 00:47:24,785 --> 00:47:28,315 This means that the people in the investment community believe in everything More than they believe in you. 801 00:47:28,321 --> 00:47:29,521 Certainly on this investment, that is it. 802 00:47:29,522 --> 00:47:32,562 Icahn: I bought it Because I really think, 803 00:47:32,558 --> 00:47:34,088 804 00:47:34,092 --> 00:47:37,692 This is an opportunity for people unemployed in these countries To get money and I think the product is a good product 805 00:47:37,695 --> 00:47:42,155 Cohan: He's not there because he believes in herbalife products 806 00:47:42,166 --> 00:47:45,996 And what is herbalife do to lift people 807 00:47:46,003 --> 00:47:48,003 Get out of poverty and enter the middle class. 808 00:47:48,005 --> 00:47:50,165 He did it because he thought he could make money by squeezing the old bill. 809 00:47:50,173 --> 00:47:55,113 Ackman: carl can try to set it up Short squeeze, 810 00:47:55,111 --> 00:47:57,911 He can try to scare my investors, 811 00:47:57,913 --> 00:47:59,553 From investing with me, 812 00:47:59,547 --> 00:48:00,147 813 00:48:00,147 --> 00:48:02,707 Sounds like that he tried to do it on this call 814 00:48:02,716 --> 00:48:04,246 Icahn: Ackman takes too high risk 815 00:48:04,250 --> 00:48:06,150 What's the matter? He doesn't risk his life. 816 00:48:06,151 --> 00:48:08,051 He risked his investor's money And I will tell you, 817 00:48:08,052 --> 00:48:08,622 This can be a mother of all short squeezes. 818 00:48:08,619 --> 00:48:11,749 Well, how long can you collect an ackman survive now 819 00:48:13,021 --> 00:48:15,221 He has billions of dollars that the company will drop. 820 00:48:15,224 --> 00:48:18,894 Man: How big are you? think their ego? 821 00:48:18,894 --> 00:48:20,864 Icahn: then he talks about charity, is complete... 822 00:48:20,862 --> 00:48:25,162 He doesn't give it to charity. 823 00:48:25,166 --> 00:48:26,666 824 00:48:26,667 --> 00:48:28,197 Reporter: Carl, let me... 825 00:48:31,037 --> 00:48:34,637 That kind of defines the market for months and months 826 00:48:34,640 --> 00:48:38,680 All discussions about What is actually done by Herbalife 827 00:48:38,677 --> 00:48:43,277 Gets refugees and becomes like a big street circus. 828 00:48:43,281 --> 00:48:45,111 Ackman: I say after carl in general, 829 00:48:45,116 --> 00:48:46,946 He calls me and he really says, 830 00:48:46,951 --> 00:48:48,351 "you know, bills, we can be friends now," 831 00:48:48,352 --> 00:48:49,522 I hope I have a recording from the conversation 832 00:48:49,519 --> 00:48:53,919 I just said to him, "look, carl, you're not my friend ," and that's all. 833 00:48:53,923 --> 00:48:57,693 Icahn: I never said that I want to be friends with you, bills 834 00:48:57,693 --> 00:48:58,963 I won't be friends with you, 835 00:48:58,960 --> 00:48:59,960 -And you said to me... -Ackman: Alright, carl... 836 00:48:59,961 --> 00:49:02,801 Icahn: You want to be a friend so we can invest together 837 00:49:02,797 --> 00:49:04,057 Ackman: Carl, I'm not interested... 838 00:49:04,064 --> 00:49:05,064 do you think I want to invest with you? 839 00:49:05,065 --> 00:49:07,395 -Oke, let's continue... -Icahn: no invest with you 840 00:49:07,400 --> 00:49:09,200 If you become the last human being on earth Reporter: Let's continue 841 00:49:09,201 --> 00:49:10,831 Zac Kirby: I entered my last semester of college, finishing at a business school 842 00:49:32,989 --> 00:49:37,329 Do not really have job prospects, 843 00:49:37,327 --> 00:49:38,827 844 00:49:38,828 --> 00:49:41,858 Know what I really want to do it even at that time 845 00:49:41,864 --> 00:49:44,664 And I have a high school friend approaching me 846 00:49:44,666 --> 00:49:48,926 About this nutrition club it popping up everywhere. 847 00:49:49,368 --> 00:49:53,068 We are in Oklahoma and the rate of obesity is very high, 848 00:49:53,072 --> 00:49:54,872 This is 67% among adults Over the age of 30, become a weight loss company, 849 00:49:54,873 --> 00:49:59,783 In the region where it is... 850 00:50:00,042 --> 00:50:02,442 Weight is needed. 851 00:50:02,445 --> 00:50:05,075 I think it will be very appropriate. 852 00:50:05,080 --> 00:50:07,210 People who registered me took me to Oklahoma City 853 00:50:09,216 --> 00:50:12,346 For one of them seminar successful trading 854 00:50:12,353 --> 00:50:15,093 It's like a big motivational event 855 00:50:15,089 --> 00:50:18,389 856 00:50:18,958 --> 00:50:21,258 Johnson: Herbalife is a global nutrition company It sells products exclusively 857 00:50:21,261 --> 00:50:23,131 Through a network of people the same as you. 858 00:50:23,129 --> 00:50:26,199 After presentation 859 00:50:26,198 --> 00:50:26,858 You will have a chance to discuss our products 860 00:50:26,865 --> 00:50:28,995 And our business opportunity 861 00:50:29,000 --> 00:50:30,130 With people who invite you here today 862 00:50:30,134 --> 00:50:32,474 And welcome our herbalife family 863 00:50:32,469 --> 00:50:35,039 And our herbalife opportunity. 864 00:50:35,038 --> 00:50:36,938 These team people, they will really show their checks 865 00:50:39,240 --> 00:50:42,080 What is herbalife? is sending them 866 00:50:42,077 --> 00:50:43,577 Say how you should get it get involved now 867 00:50:43,578 --> 00:50:45,008 868 00:50:45,012 --> 00:50:48,812 Because of this nutrition club can easily produce, you know, 869 00:50:48,815 --> 00:50:52,315 $ 20-30,000 in sales each month 870 00:50:52,318 --> 00:50:56,318 So I thought, I have found a cash cow here. 871 00:50:56,322 --> 00:50:58,422 Once someone enters our club, 872 00:50:58,424 --> 00:50:59,724 We say, "Welcome to the club." 873 00:50:59,725 --> 00:51:03,255 And that's a little something, we welcome them to the club... 874 00:51:03,261 --> 00:51:04,661 You know, They feel high energy 875 00:51:04,662 --> 00:51:05,792 It's there, there is music going 876 00:51:05,796 --> 00:51:08,196 You want to know how many you told him about, 877 00:51:08,199 --> 00:51:08,799 You know, the business, 878 00:51:08,799 --> 00:51:11,299 Because they will be like, "they only saw to recruit me," 879 00:51:11,301 --> 00:51:12,831 Or, "they just search, you know, 880 00:51:12,835 --> 00:51:13,895 " to take me their business. " 881 00:51:13,902 --> 00:51:15,172 So you really want to start building 882 00:51:15,169 --> 00:51:17,069 Your relationship with these people first. 883 00:51:17,070 --> 00:51:18,570 On the first day, 884 00:51:18,571 --> 00:51:22,211 These are all part of planting seeds 885 00:51:22,207 --> 00:51:24,437 You don't need the whole tree has not 886 00:51:24,442 --> 00:51:27,182 That will come in time. Believe me. 887 00:51:27,178 --> 00:51:28,978 But be patient. Make an agreement 888 00:51:28,979 --> 00:51:30,309 The agreement is here. build herbalife 889 00:51:30,313 --> 00:51:33,013 It's about duplicating. 890 00:51:33,015 --> 00:51:34,605 It's about growing our royalties 891 00:51:34,616 --> 00:51:36,176 892 00:51:36,184 --> 00:51:40,054 And if we're just there, just, you know, Slinging a lump of shake, 893 00:51:40,054 --> 00:51:42,094 And yes, have lots of fun in doing that 894 00:51:42,089 --> 00:51:44,319 But the problem is, is that we are there 895 00:51:44,324 --> 00:51:46,864 To duplicate, to grow our check. 896 00:51:48,860 --> 00:51:51,260 Kirby: What kind of sale is my on the idea is, 897 00:51:51,263 --> 00:51:52,633 I think, 40 nutritional clubs 898 00:51:52,631 --> 00:51:54,501 It's open a two-year trip 899 00:51:54,499 --> 00:51:56,169 Down southern oklahoma 900 00:51:56,167 --> 00:51:58,227 So, generally when you see an industry 901 00:51:58,235 --> 00:52:00,795 It throws up brick and mortar stores 902 00:52:00,804 --> 00:52:01,904 With fast speed, 903 00:52:01,905 --> 00:52:04,735 There is some money. 904 00:52:05,006 --> 00:52:05,866 I have a student loan 905 00:52:05,874 --> 00:52:10,184 And I don't have it a savings account definitely and, uh... 906 00:52:10,178 --> 00:52:13,948 The only thing I have is, I have a '73 mach 1 907 00:52:13,948 --> 00:52:16,618 mustang That I restore all through high school 908 00:52:17,383 --> 00:52:18,583 I actually use it as collateral 909 00:52:18,585 --> 00:52:23,085 To get a $ 15,000 loan to be truly open a nutrition club 910 00:52:24,422 --> 00:52:27,062 How to herbalife structured, it's set 911 00:52:27,058 --> 00:52:30,428 Small goals and macro goals for distributors 912 00:52:30,428 --> 00:52:32,958 A small goal can be obtained and that makes him go, 913 00:52:32,963 --> 00:52:37,133 That keeps it in it. They start with a 25% discount. 914 00:52:37,133 --> 00:52:39,173 Then it hit him until 35 915 00:52:39,168 --> 00:52:42,598 And then to 42 and then a 50% discount. 916 00:52:42,604 --> 00:52:45,204 So, I mean, it's small stepping stone incentives 917 00:52:45,206 --> 00:52:46,566 To keep people in the company. 918 00:52:46,574 --> 00:52:48,214 And that, for the average person 919 00:52:48,208 --> 00:52:49,408 It will take six months to a year Just reached 50% discount. 920 00:52:49,409 --> 00:52:52,739 I buy and go straight to the 50% marker 921 00:52:52,745 --> 00:52:55,775 And open a nutrition club. 922 00:52:55,781 --> 00:52:57,651 Announcer: In Herbalife, Your success is our business. 923 00:52:58,782 --> 00:53:02,682 That's why we are developing a training program 924 00:53:02,686 --> 00:53:04,846 It can teach you everything you must know 925 00:53:04,854 --> 00:53:07,624 To grow a successful business. 926 00:53:07,623 --> 00:53:09,093 927 00:53:09,091 --> 00:53:11,621 Kirby: And Waldron, he was with the company 928 00:53:11,626 --> 00:53:13,086 Almost from the beginning. 929 00:53:13,094 --> 00:53:13,994 I have dinner together and 930 00:53:13,994 --> 00:53:16,034 And that's right legitimize it, the fact that I'm meeting 931 00:53:16,029 --> 00:53:19,529 This individual has ever been in a company for almost 30 years He has this big house. 932 00:53:19,532 --> 00:53:21,502 $ 80,000 cars in the driveway, you know. 933 00:53:21,500 --> 00:53:24,500 And he sits there tell me that dinner 934 00:53:24,503 --> 00:53:27,543 "You've got it is much easier than I have it 935 00:53:27,539 --> 00:53:30,009 " because you can open a nutrition club 936 00:53:30,008 --> 00:53:31,338 "and they will do it come to you." 937 00:53:31,342 --> 00:53:33,282 So, hook, line and sinker, the next three months, 938 00:53:33,277 --> 00:53:35,777 939 00:53:35,779 --> 00:53:38,179 We are just about opening club nutrition because 940 00:53:38,181 --> 00:53:42,681 The man above told me This is where the money is at. 941 00:53:48,523 --> 00:53:52,463 I reach level in the company, they call g.E.T. Team. 942 00:53:52,461 --> 00:53:55,801 The global expansion team is what stands for. 943 00:53:55,797 --> 00:54:00,067 You go from supervisor to the world team get. Team. 944 00:54:00,067 --> 00:54:01,897 You are climbing the stairs. 945 00:54:01,902 --> 00:54:03,972 You are halfway up already 946 00:54:03,970 --> 00:54:06,200 And I reach it in six months. 947 00:54:06,205 --> 00:54:09,305 It looks like is like a good start. 948 00:54:10,541 --> 00:54:12,511 The only that separates you 949 00:54:12,510 --> 00:54:14,680 From not getting on the presidential team 950 00:54:14,678 --> 00:54:17,578 What is one thing? Write this. 951 00:54:18,012 --> 00:54:20,082 Give up. 952 00:54:30,490 --> 00:54:33,120 Cohan: Herbalife just don't sit there and say, 953 00:54:33,126 --> 00:54:34,786 "oh, the right bill 954 00:54:34,794 --> 00:54:36,234 " We will just go pull the plug 955 00:54:36,228 --> 00:54:37,158 "in this operation." 956 00:54:37,162 --> 00:54:39,432 You know, they fight. 957 00:54:39,430 --> 00:54:42,400 They build them cases in the media 958 00:54:42,399 --> 00:54:44,869 And with their investors. 959 00:54:45,534 --> 00:54:45,934 This is war, 960 00:54:45,935 --> 00:54:48,435 And for all of us to think otherwise here will be stupid 961 00:54:48,437 --> 00:54:50,567 Because the name of another company has never happened. 962 00:54:50,572 --> 00:54:54,912 This is unique in Americans business landscape 963 00:54:54,909 --> 00:54:57,109 Female reporter: Your share price has been hit. 964 00:54:57,111 --> 00:54:59,241 What do you say your shareholder? 965 00:54:59,246 --> 00:55:02,376 How they have to rally to get out of this storm 966 00:55:02,382 --> 00:55:03,552 We are very profitable, 967 00:55:03,549 --> 00:55:06,249 Um, we will continue to be very profitable 968 00:55:06,251 --> 00:55:09,451 And the share price will reflect its value 969 00:55:09,454 --> 00:55:11,594 That's really in this company. 970 00:55:15,391 --> 00:55:16,861 Richard: This company has been built 971 00:55:16,860 --> 00:55:18,830 Like armor armor. 972 00:55:24,431 --> 00:55:28,331 They hire all of these major sports figures 973 00:55:28,335 --> 00:55:30,165 To promote the brand. 974 00:55:55,593 --> 00:56:00,403 Now the best pyramid scheme tries to recruit credible people 975 00:56:00,398 --> 00:56:02,928 Uh, to give them, You know, credibility. 976 00:56:02,933 --> 00:56:03,873 We have Richard Carmona. 977 00:56:03,867 --> 00:56:05,627 He is a general surgeon from the United States. 978 00:56:05,635 --> 00:56:06,595 He happened to be dating 979 00:56:06,602 --> 00:56:09,202 And this is someone very high integrity. 980 00:56:09,204 --> 00:56:10,874 He is in the council of herbs. 981 00:56:10,872 --> 00:56:12,712 And then they have it this Nobel laureate 982 00:56:12,707 --> 00:56:15,167 To make credibility about the product. 983 00:56:15,176 --> 00:56:16,706 I believe Dr. Ignarro 984 00:56:16,710 --> 00:56:19,240 What are the richest Nobel laureates Why? 985 00:56:19,245 --> 00:56:22,305 Herbalife has paid him $ 21.2 million 986 00:56:22,314 --> 00:56:25,854 To serve as a spokesman company. 987 00:56:26,416 --> 00:56:28,476 And for money... 988 00:56:28,485 --> 00:56:30,275 OK, look. 989 00:56:30,618 --> 00:56:33,618 And I like that idea from American products Helping people in other parts of the world. 990 00:56:33,622 --> 00:56:37,062 991 00:56:37,058 --> 00:56:37,418 And so on, 992 00:56:37,425 --> 00:56:39,385 This has every combination of the things I like. 993 00:56:39,393 --> 00:56:41,993 I mean, the hardest part, I have to tell you, michael, is 994 00:56:41,995 --> 00:56:44,455 We are all diets and others people are starving 995 00:56:44,464 --> 00:56:48,334 And you actually have a product that is related to both. 996 00:56:48,334 --> 00:56:49,504 This is amazing. 997 00:56:49,501 --> 00:56:51,071 This is amazing. 998 00:56:51,501 --> 00:56:53,401 I think it's amazing. 999 00:57:04,111 --> 00:57:06,911 and not sticking Your hand comes out of the window. 1000 00:57:06,914 --> 00:57:08,354 Do you understand me? 1001 00:57:08,580 --> 00:57:13,850 I was raised to be hard and proud by my parents 1002 00:57:13,852 --> 00:57:17,152 I remember my mother was part of Italy 1003 00:57:17,155 --> 00:57:18,015 And nobody talks about that 1004 00:57:27,363 --> 00:57:29,563 Sometimes I'm wrong, 1005 00:57:29,565 --> 00:57:32,295 Behavior in that I do alone, 1006 00:57:32,301 --> 00:57:33,571 But it's out of passion. 1007 00:57:35,601 --> 00:57:38,371 Herbalife has come to our community 1008 00:57:38,371 --> 00:57:39,941 Like a thief at night. 1009 00:57:39,939 --> 00:57:41,239 Stealing from our people. 1010 00:57:41,240 --> 00:57:44,110 We say, "afuera with herbalife!" 1011 00:57:45,477 --> 00:57:46,637 Herbalife! 1012 00:57:46,644 --> 00:57:49,214 These people go to their gala 1013 00:57:49,213 --> 00:57:51,413 And, without shame, knows that 1014 00:57:51,415 --> 00:57:53,815 On the other side of the building is human Who has received is financially detrimental to them. 1015 00:57:53,817 --> 00:57:57,287 They prey on. 1016 00:57:57,853 --> 00:58:00,223 Herbalife! 1017 00:58:00,422 --> 00:58:01,392 Herbalife! 1018 00:58:02,791 --> 00:58:04,161 Herbalife! 1019 00:58:07,194 --> 00:58:08,494 1020 00:58:22,541 --> 00:58:24,341 You go and enjoy extravaganza 1021 00:58:24,342 --> 00:58:25,242 But what do they say? 1022 00:58:25,242 --> 00:58:27,712 Excuse me, can you ride the sidewalk right? 1023 00:58:27,711 --> 00:58:28,811 Thank you. 1024 00:59:17,287 --> 00:59:21,517 Contreras: In 2002, my life changed. 1025 00:59:22,224 --> 00:59:24,834 There is this young man, 1026 00:59:24,828 --> 00:59:27,758 It shoots people in the environment. 1027 00:59:27,764 --> 00:59:31,534 We understand he is part of an aryan gang. 1028 00:59:32,200 --> 00:59:35,440 I was shot in the back of my head 1029 00:59:36,370 --> 00:59:38,500 When I lose consciousness 1030 00:59:38,506 --> 00:59:42,006 All I can think of is my daughter and daughter I think that when I was truly born 1031 00:59:44,777 --> 00:59:46,837 Because before I used to worry 1032 00:59:46,846 --> 00:59:48,606 My house, my bank account, That is my priority. 1033 00:59:48,614 --> 00:59:53,224 1034 00:59:53,218 --> 00:59:57,688 And in an instant, Your life can be taken. 1035 00:59:57,689 --> 00:59:59,889 Maybe that's why 1036 00:59:59,891 --> 01:00:04,261 I'm very sensitive for any victim 1037 01:00:04,262 --> 01:00:06,262 Herbalife or whatever. 1038 01:00:06,796 --> 01:00:10,126 We need to understand them 1039 01:00:17,172 --> 01:00:20,442 Yes, we will do that Um... 1040 01:00:21,308 --> 01:00:22,908 Yes, I have returned. 1041 01:00:22,910 --> 01:00:24,780 -Do you hear? -Yes. 1042 01:00:24,778 --> 01:00:25,708 Good. I can see the return... 1043 01:00:25,712 --> 01:00:27,412 Not the most comfortable chair in the world 1044 01:00:27,413 --> 01:00:29,583 The return is behind the bill. 1045 01:00:34,251 --> 01:00:34,921 What's new? 1046 01:00:34,919 --> 01:00:38,189 We see this idea from you the end of last December 1047 01:00:38,188 --> 01:00:40,088 Since then we see double stock 1048 01:00:40,089 --> 01:00:42,419 You need the government to be involved. They haven't. 1049 01:00:42,424 --> 01:00:43,924 What are they not listening to? Tell me. 1050 01:00:43,925 --> 01:00:45,485 The stock is up where we shorted 1051 01:00:45,493 --> 01:00:46,993 We are shorted in mid to high 40s. 1052 01:00:46,994 --> 01:00:49,234 So we definitely lose money sign to the market 1053 01:00:49,229 --> 01:00:51,029 But what we focus on... 1054 01:00:51,030 --> 01:00:52,660 -How much? -You know, a lot of money. 1055 01:00:52,664 --> 01:00:54,134 Four, five hundred millions of dollars. 1056 01:00:54,132 --> 01:00:54,832 Something like that. 1057 01:00:54,832 --> 01:00:57,102 Uh, but what do we focus on with herbalife 1058 01:00:57,100 --> 01:00:59,230 Tells a story with regulators 1059 01:00:59,235 --> 01:01:00,695 Ensuring that they understand 1060 01:01:00,703 --> 01:01:01,273 What's the problem, 1061 01:01:01,270 --> 01:01:03,500 And getting regulators interested in the company 1062 01:01:03,505 --> 01:01:05,635 But the fact is that you have been very outspoken 1063 01:01:05,640 --> 01:01:07,940 And we haven't seen whatever happened, 1064 01:01:07,942 --> 01:01:09,112 Can someone make an argument 1065 01:01:09,109 --> 01:01:11,139 You might help the company? 1066 01:01:11,144 --> 01:01:13,584 Good. People can make whatever argument they want 1067 01:01:13,579 --> 01:01:16,979 I am quite comfortable the government will do its job 1068 01:01:20,284 --> 01:01:23,424 Narrator: With suspicion pressing the regulator investigating, 1069 01:01:23,421 --> 01:01:26,691 Herbalife executives are launched a series of reforms. 1070 01:01:26,690 --> 01:01:30,990 Reducing shipping costs, simplifies product returns, 1071 01:01:30,994 --> 01:01:32,864 and bend to the distributor 1072 01:01:32,862 --> 01:01:35,432 With questionable side operations 1073 01:01:36,164 --> 01:01:38,474 Richard: They are forbidden this cheat system 1074 01:01:38,467 --> 01:01:41,167 What is meant by as lead generation. 1075 01:01:41,169 --> 01:01:44,939 Distributors will run ads on television, on radio 1076 01:01:44,939 --> 01:01:47,939 "be your own boss," "make unlimited income," 1077 01:01:47,942 --> 01:01:49,982 And there are no details. 1078 01:01:49,977 --> 01:01:52,277 I have about $ 200 for my name 1079 01:01:52,279 --> 01:01:55,279 So I found an ad that said, "work from home," 1080 01:01:55,282 --> 01:01:59,682 And I called and it happened to become herbalife 1081 01:02:00,152 --> 01:02:05,962 But most of that is to spam your message 1082 01:02:05,958 --> 01:02:08,088 That's real income. 1083 01:02:10,094 --> 01:02:11,434 Big players 1084 01:02:11,429 --> 01:02:15,659 Know how to send one million emails 1085 01:02:15,666 --> 01:02:18,596 And they do that once a month. 1086 01:02:20,769 --> 01:02:22,499 Someone will sit on their computer, 1087 01:02:22,505 --> 01:02:24,505 Suddenly something will appear. 1088 01:02:24,507 --> 01:02:28,137 And that will say, "lose 30 kilograms, 30 days for $ 30. 1089 01:02:28,143 --> 01:02:30,813 " enter your credit card number. Click here. " 1090 01:02:31,344 --> 01:02:33,554 And the top distributor will sell 1091 01:02:33,547 --> 01:02:35,577 Name and number of people 1092 01:02:35,582 --> 01:02:38,122 For existing herbalife distributors 1093 01:02:38,117 --> 01:02:41,377 $ 130 names. 1094 01:02:41,386 --> 01:02:43,046 And they will do it new instructions , 1095 01:02:43,054 --> 01:02:46,224 Someone clicks this five minutes ago, 1096 01:02:46,223 --> 01:02:47,293 And this is your information, 1097 01:02:47,290 --> 01:02:49,020 Call that person, they are ready to go 1098 01:02:49,025 --> 01:02:51,085 They pick up the receiver. "Hi, mary, this is aaron. 1099 01:02:51,093 --> 01:02:54,563 "don't want your income extra $ 500 a month?" 1100 01:02:54,563 --> 01:02:57,803 Richard: Distributors are notified, You must purchase these leads. 1101 01:02:57,799 --> 01:02:58,629 You must continue to buy it. 1102 01:02:58,633 --> 01:03:02,743 And at some point you will start recruit enough people, 1103 01:03:02,737 --> 01:03:03,997 Who will recruit quite a lot of people 1104 01:03:04,004 --> 01:03:07,844 That you will succeed the presidential team. 1105 01:03:08,340 --> 01:03:09,840 This lead generation system 1106 01:03:09,842 --> 01:03:12,182 That's how financially destroys 1107 01:03:12,177 --> 01:03:16,607 Because people will not only have to buy a product, 1108 01:03:16,614 --> 01:03:18,414 But they will buy, in some cases, 1109 01:03:18,415 --> 01:03:20,545 Thousands of dollars from leads a month 1110 01:03:20,550 --> 01:03:24,620 So people disappear their retirement, and they lose their savings 1111 01:03:24,620 --> 01:03:26,520 Following this system. 1112 01:03:27,454 --> 01:03:28,924 When herbalife closes this, 1113 01:03:28,923 --> 01:03:32,823 Wall Street says, "it's too bad if people lose that money 1114 01:03:32,826 --> 01:03:34,526 " as long as they clean it, 1115 01:03:34,527 --> 01:03:36,687 "you know, we are fine with that 1116 01:03:37,695 --> 01:03:40,595 Johnson: Wake up better every day, 1117 01:03:40,598 --> 01:03:42,328 and build it better means 1118 01:03:42,333 --> 01:03:45,203 Change some philosophy in the company. 1119 01:03:45,202 --> 01:03:47,902 Quick rich. It's for other people to do. 1120 01:03:47,904 --> 01:03:50,844 Healthy now That's for us to do. 1121 01:03:57,579 --> 01:03:58,879 Kirby: We open five nutrition clubs, 1122 01:03:58,881 --> 01:04:01,621 Types spread around northern oklahoma. 1123 01:04:01,617 --> 01:04:03,677 And when I reach g.E.T. Team level, 1124 01:04:03,685 --> 01:04:05,615 Then the press team members start telling me 1125 01:04:05,620 --> 01:04:08,790 How the payment system really works 1126 01:04:09,822 --> 01:04:11,762 I will never forget we held a meeting 1127 01:04:11,758 --> 01:04:12,958 In the nutrition team 'club file. 1128 01:04:12,959 --> 01:04:16,889 He is like the head of Honcho here is Oklahoma from Herbalife 1129 01:04:16,896 --> 01:04:19,296 He is actually my upline. 1130 01:04:19,463 --> 01:04:22,333 Executive 30k member of the presidential team, 1131 01:04:22,333 --> 01:04:23,533 Team File 1132 01:04:26,202 --> 01:04:27,572 I tell you every one of you 1133 01:04:27,571 --> 01:04:30,101 Have a chance to live like this. 1134 01:04:30,106 --> 01:04:33,206 Whatever you want, is just a big dream... 1135 01:04:33,209 --> 01:04:33,909 Kirby: Tim said 1136 01:04:33,909 --> 01:04:35,679 That was first made a commission 1137 01:04:35,677 --> 01:04:37,307 Of our top three, 1138 01:04:37,311 --> 01:04:38,711 But now we will also succeed 1139 01:04:38,712 --> 01:04:40,982 Of the four of us, fifth and sixth. 1140 01:04:40,980 --> 01:04:43,410 And after you pass it your sixth downline, 1141 01:04:43,415 --> 01:04:45,345 After you get to you seventh, eighth and ninth, 1142 01:04:45,350 --> 01:04:48,480 There are still people who pay, It feels like half a percent. 1143 01:04:48,486 --> 01:04:51,946 So, I mean, basically, what he told us was, 1144 01:04:51,956 --> 01:04:52,886 Never stop. 1145 01:04:52,890 --> 01:04:55,590 And here it is small hand movements he will do it 1146 01:04:55,592 --> 01:04:58,862 Because he said that keep going down. 1147 01:04:58,861 --> 01:05:02,831 Because it's so down to everyone 1148 01:05:06,799 --> 01:05:09,099 No matter where it goes 1149 01:05:10,836 --> 01:05:13,266 I mean, I got a degree in business. 1150 01:05:13,272 --> 01:05:13,802 This is pretty clear... 1151 01:05:13,805 --> 01:05:18,035 That will continue to go down. That is a pyramid. This is not sustainable. 1152 01:05:18,042 --> 01:05:20,342 Ackman: The idea here is you will build this business 1153 01:05:20,344 --> 01:05:24,284 Only recruit six and each recruits six people. 1154 01:05:24,281 --> 01:05:27,481 But you enter almost the bottom of the pyramid. 1155 01:05:27,484 --> 01:05:31,654 And at that time you get to level 13, your prospect is very dim. 1156 01:05:31,654 --> 01:05:36,264 Because you must recruit more than twice world population. 1157 01:05:38,492 --> 01:05:40,162 Kirby: That's when I started learning more about 1158 01:05:40,161 --> 01:05:43,201 These various methods they use to recruit people. 1159 01:05:43,197 --> 01:05:47,967 Right before I to the company, it was sales leads. 1160 01:05:50,135 --> 01:05:53,895 I'm like, "okay, so I'm basically stuck in the current phase. " 1161 01:05:53,906 --> 01:05:56,066 I have made a mistake. = And then they will slide out and draw commissions 1162 01:05:56,074 --> 01:05:58,844 From that person they just scammed to take over their rent 1163 01:06:02,846 --> 01:06:03,846 1164 01:06:03,848 --> 01:06:07,848 1165 01:06:08,117 --> 01:06:11,487 1166 01:06:11,488 --> 01:06:14,958 1167 01:06:14,958 --> 01:06:17,628 1168 01:06:17,627 --> 01:06:21,897 1169 01:06:23,564 --> 01:06:29,404 Types of people who can do that, I mean, they are criminals. 1170 01:06:29,404 --> 01:06:31,304 When do you know, when you try 1171 01:06:31,305 --> 01:06:32,635 To get someone into business 1172 01:06:32,639 --> 01:06:37,109 You know they will fail, that is a criminal 1173 01:06:38,510 --> 01:06:42,150 I do have close friends, roommates through college, 1174 01:06:42,147 --> 01:06:44,807 And hers nutrition club failed 1175 01:06:44,816 --> 01:06:47,916 We have enough complete falls out 1176 01:06:47,919 --> 01:06:50,319 More than a deal because 1177 01:06:50,321 --> 01:06:53,461 I am the one who introduces it to herbalife. 1178 01:06:55,024 --> 01:06:57,094 That's clear pyramid scheme, 1179 01:06:57,093 --> 01:06:58,693 But when you are investing a lot, 1180 01:06:58,694 --> 01:07:03,334 It's a bit difficult six months to say, "UPS, messed up." 1181 01:07:12,439 --> 01:07:16,679 Take care: Herbalife a company with business models in industry 1182 01:07:16,677 --> 01:07:19,937 It has been the subject of discussion for criticism for years. 1183 01:07:19,946 --> 01:07:23,706 But even federal trade commissions don't know the difference 1184 01:07:23,716 --> 01:07:25,276 Between illegal pyramid scheme 1185 01:07:25,284 --> 01:07:27,354 And legal level marketing company 1186 01:07:27,352 --> 01:07:31,452 Without an intensive fact investigation 1187 01:07:31,955 --> 01:07:34,585 Fitzpatrick: they have one court case against amway 1188 01:07:34,591 --> 01:07:37,361 That gives multilevel street marketing. 1189 01:07:37,360 --> 01:07:39,830 But far more important, government, 1190 01:07:39,829 --> 01:07:42,499 Starting with reagan administration, 1191 01:07:42,498 --> 01:07:44,798 Adopt position deregulation 1192 01:07:44,800 --> 01:07:51,700 And the industry starts pouring millions into our political system. 1193 01:07:51,706 --> 01:07:52,806 All with one purpose. 1194 01:07:52,807 --> 01:07:54,907 The same goal the cigarette industry has 1195 01:07:54,909 --> 01:07:56,839 Because I like the cigarette industry, 1196 01:07:56,844 --> 01:08:00,784 It has an existential need to prevent regulation 1197 01:08:01,814 --> 01:08:03,754 This has even one advantage, 1198 01:08:03,750 --> 01:08:06,350 That cigarette industry does not have 1199 01:08:06,352 --> 01:08:11,662 Until now, already exists there is no victim's voice 1200 01:08:20,464 --> 01:08:24,034 Douglas brooks: Often, people think the reason they failed 1201 01:08:24,035 --> 01:08:24,995 What are they? not trying hard enough, 1202 01:08:25,002 --> 01:08:29,972 Or they are not suitable for recruitment that you have to do 1203 01:08:29,973 --> 01:08:34,443 But once they find it out that other people are in the same situation, 1204 01:08:34,444 --> 01:08:38,014 Then they realize that That is not their fault. 1205 01:08:38,014 --> 01:08:42,424 That there is a system here which prevents them 1206 01:08:42,419 --> 01:08:46,289 Has the type of success described for them. 1207 01:08:51,226 --> 01:08:52,256 hi, mr. Brooks. 1208 01:08:52,260 --> 01:08:54,460 Ackman: In an effort to recover their losses, 1209 01:08:54,462 --> 01:08:56,732 Herbalife is distributor from Chicago 1210 01:08:56,730 --> 01:08:58,630 Detained lawyers Douglas Brooks 1211 01:08:58,631 --> 01:09:01,601 Representing them in a class action lawsuit, 1212 01:09:01,600 --> 01:09:04,400 Bostick vs Herbalife. 1213 01:09:04,901 --> 01:09:06,471 Instead of going to court, 1214 01:09:06,470 --> 01:09:07,870 Lawyers for herbalife and bostick 1215 01:09:07,871 --> 01:09:12,941 Agree completion of cash from $ 15 million. 1216 01:09:13,074 --> 01:09:15,114 On the eve of federal court approval, 1217 01:09:15,110 --> 01:09:17,880 Chicago group has come to California 1218 01:09:17,879 --> 01:09:19,779 To object to the settlement. 1219 01:09:19,780 --> 01:09:22,480 Pretty early, when I hear about this settlement, 1220 01:09:22,482 --> 01:09:27,452 I realize this is a very bad deal 1221 01:09:27,453 --> 01:09:31,123 How many times have you played? 1222 01:09:35,159 --> 01:09:38,329 when you become herbalife distributor, 1223 01:09:38,329 --> 01:09:40,299 You buy lottery tickets 1224 01:09:40,297 --> 01:09:43,057 For the lottery is over 1225 01:09:43,066 --> 01:09:48,196 The class is approximately 1.5 million herbalife distributors. 1226 01:09:48,204 --> 01:09:52,914 Herbalife pays a settlement funds of $ 15 million, 1227 01:09:52,908 --> 01:09:56,008 Who works about $ 10 per person. 1228 01:09:56,011 --> 01:09:58,911 - Tomorrow in court... 1229 01:09:58,913 --> 01:10:02,183 I say judge at least 1230 01:10:02,182 --> 01:10:04,952 280,000 people reach supervisor level 1231 01:10:04,951 --> 01:10:10,991 And the average loss is about 8,000 or even more. 1232 01:10:11,556 --> 01:10:14,756 I think it's aggregate damage to class 1233 01:10:14,760 --> 01:10:18,530 Is it between $ 700 million and $ 1.1 billion. 1234 01:10:18,530 --> 01:10:22,030 I want the judge to see that there are real people 1235 01:10:22,033 --> 01:10:25,533 Who is really broken by this company 1236 01:10:25,536 --> 01:10:30,336 The rule is that the judge must find it the solution is 1237 01:10:30,340 --> 01:10:33,540 Fair, reasonable and adequate. 1238 01:10:34,175 --> 01:10:36,235 I have each of these people sign a declaration 1239 01:10:36,244 --> 01:10:40,954 About their experience and their objections to the settlement 1240 01:10:40,948 --> 01:10:44,218 They understand that this is a long shot 1241 01:10:49,421 --> 01:10:52,421 if you want Come here in a circle. 1242 01:10:56,460 --> 01:11:02,430 Oh my God, I asked you today to call our ancestors, 1243 01:11:02,433 --> 01:11:05,003 And I call you, Mother Earth, 1244 01:11:05,002 --> 01:11:08,302 To enter life of brocclas. 1245 01:11:08,305 --> 01:11:09,795 Brooks: Thirty-three years from legal practice, 1246 01:11:09,806 --> 01:11:15,536 I have never had a client who put me in the middle a prayer circle 1247 01:11:16,378 --> 01:11:19,048 Contreras: I ask you to hold it each of our victims 1248 01:11:19,048 --> 01:11:20,708 And broklas brooks with their hands, 1249 01:11:20,716 --> 01:11:27,846 And that in Douglas is energy from holy spirit, god father 1250 01:11:27,856 --> 01:11:29,086 Amen. 1251 01:11:29,090 --> 01:11:29,990 Amen. 1252 01:11:29,990 --> 01:11:32,720 This brings home to me 1253 01:11:32,726 --> 01:11:36,386 That is unfair an abstract legal issue 1254 01:11:36,396 --> 01:11:40,056 This is something that affects human life. 1255 01:11:40,632 --> 01:11:42,832 If I can do it something to help them, 1256 01:11:42,835 --> 01:11:47,865 That will make me feel like that I do something that means 1257 01:11:52,977 --> 01:11:54,377 Questions? 1258 01:11:55,345 --> 01:11:56,375 Yes sir. 1259 01:11:56,380 --> 01:11:57,050 I don't understand something. 1260 01:11:57,047 --> 01:12:00,747 You get this great presentation that you spend a lot of money. 1261 01:12:00,750 --> 01:12:04,850 Everyone doesn't understand except you 1262 01:12:04,854 --> 01:12:05,454 I don't understand. 1263 01:12:05,454 --> 01:12:07,594 Tell me why I don't make mistakes 1264 01:12:07,589 --> 01:12:11,859 Show properly the validity Herbalife is doing 1265 01:12:11,859 --> 01:12:13,559 To turn off this company. 1266 01:12:13,560 --> 01:12:14,060 I don't see it. 1267 01:12:14,060 --> 01:12:16,890 And why are others? on the other hand? 1268 01:12:16,896 --> 01:12:20,026 Okay, okay, sounds like you are bull 1269 01:12:20,032 --> 01:12:22,932 No no. I'm not a bull, or a bear. 1270 01:12:22,934 --> 01:12:23,804 By the way, is a good question 1271 01:12:23,801 --> 01:12:25,901 Okay, this is a good question. Let me answer it. 1272 01:12:25,903 --> 01:12:27,303 Give me a good answer 1273 01:12:27,304 --> 01:12:29,804 We already have soldiers working on this project 1274 01:12:29,806 --> 01:12:33,166 Hundreds of people, investigators, lawyers 1275 01:12:33,176 --> 01:12:35,836 Carl did not do it type of maturity perseverance we do. 1276 01:12:35,845 --> 01:12:39,975 Look, the nutrition club is designed to be a secret. 1277 01:12:39,982 --> 01:12:41,512 This is clever cheating. 1278 01:12:41,516 --> 01:12:47,286 You go after the people who are the lowest income, the least sophisticated, 1279 01:12:47,288 --> 01:12:48,418 Many of them are undocumented. 1280 01:12:48,422 --> 01:12:52,222 You don't complain when you are an undocumented immigrant 1281 01:12:52,225 --> 01:12:54,825 Because you might be thrown out of the country. 1282 01:12:54,827 --> 01:12:57,157 What are all of these? latino distributors 1283 01:12:57,162 --> 01:12:58,932 Documented here? 1284 01:12:58,930 --> 01:12:59,830 So, every distributor who registers, 1285 01:12:59,830 --> 01:13:02,230 First they give us with the taxpayer id number. 1286 01:13:02,232 --> 01:13:03,732 That is our obligation to make sure 1287 01:13:03,733 --> 01:13:06,003 That our tax is currently there paid by all our distributors. 1288 01:13:06,001 --> 01:13:08,841 Well, if so, what do "distributors not fly"? 1289 01:13:08,837 --> 01:13:10,897 Because it's not It seems like it makes sense to me. 1290 01:13:12,673 --> 01:13:14,973 That point you enter in Herbalife, 1291 01:13:14,975 --> 01:13:17,175 You have those who meet the requirements to continue 1292 01:13:17,177 --> 01:13:18,477 Cruise ships and airplanes, 1293 01:13:18,478 --> 01:13:21,078 But then a separate group doesn't fly. 1294 01:13:21,080 --> 01:13:21,750 What does that mean? 1295 01:13:21,747 --> 01:13:23,707 So, that is not the part of our terminology. 1296 01:13:23,715 --> 01:13:26,245 Our focus is supporting all distributors 1297 01:13:26,250 --> 01:13:28,250 Women: They don't know what "distributors don't fly" is? 1298 01:13:28,252 --> 01:13:31,622 This is not something It is in our terminology. 1299 01:13:34,256 --> 01:13:35,956 Narrator: End of 2013, 1300 01:13:35,958 --> 01:13:39,228 Stock Herbalife soars to height all the time 1301 01:13:39,227 --> 01:13:40,927 As a series of developments 1302 01:13:40,928 --> 01:13:43,758 Reduce ackman short positions 1303 01:13:44,063 --> 01:13:44,963 He left after Belgium, 1304 01:13:44,964 --> 01:13:47,104 When it's like Belgium it will benefit him And when Belgium comes out benefits us, 1305 01:13:47,099 --> 01:13:48,699 Actually discredit ackman thesis, 1306 01:13:48,700 --> 01:13:50,930 That is no longer important. 1307 01:13:50,935 --> 01:13:52,895 Bill said at one point has said, 1308 01:13:53,636 --> 01:13:54,966 He does not believe the audit will be clean again That's 1309 01:13:54,971 --> 01:13:57,501 The stock is now up 7%. 1310 01:13:57,506 --> 01:13:58,466 1311 01:13:58,473 --> 01:14:00,773 1312 01:14:00,775 --> 01:14:02,875 This is seen as A very positive step. 1313 01:14:02,877 --> 01:14:04,607 How is this meaningful to you, carl? 1314 01:14:04,612 --> 01:14:08,052 Icahn: You know sometimes investment is just a kind of no-brainer. 1315 01:14:08,048 --> 01:14:10,148 I think this one, when I buy it, 1316 01:14:13,351 --> 01:14:15,991 You have been set up an argument today 1317 01:14:15,987 --> 01:14:18,547 It seems, frankly, most of it is not important. 1318 01:14:21,692 --> 01:14:24,232 There is nothing not important about it We have facts. 1319 01:14:24,227 --> 01:14:27,427 It seems like all road walls are against you. 1320 01:14:27,430 --> 01:14:30,230 Analyst, investment banker... 1321 01:14:30,232 --> 01:14:33,102 Ackman: People on the wall road, seem, 1322 01:14:33,101 --> 01:14:34,401 Not really cares whether or not 1323 01:14:34,402 --> 01:14:36,442 The company pyramid scheme 1324 01:14:36,437 --> 01:14:37,267 What they care about 1325 01:14:37,271 --> 01:14:39,101 Is the stock price in the short term. 1326 01:14:43,176 --> 01:14:45,906 It's about 13% bouncing. 1327 01:14:45,912 --> 01:14:47,142 Herbalife is will use facts 1328 01:14:47,146 --> 01:14:47,936 That share price has been up to this day 1329 01:14:47,946 --> 01:14:50,206 To say that everyone ignores what we have to say 1330 01:14:50,214 --> 01:14:53,114 My advice is You might don't ignore it 1331 01:14:53,982 --> 01:14:54,652 Next? 1332 01:14:54,650 --> 01:14:59,120 This is not a good idea to take moral problems to the wall road 1333 01:14:59,121 --> 01:15:01,791 And ask them to become judges. 1334 01:15:01,790 --> 01:15:05,360 But in the heart, This is a moral problem. 1335 01:15:22,576 --> 01:15:24,976 From New York times tomorrow, 1336 01:15:28,948 --> 01:15:31,448 This is accurate describes your behavior 1337 01:15:34,319 --> 01:15:36,089 To learn more about the beautiful the things you do, 1338 01:15:36,087 --> 01:15:40,217 Or is it a story that will cause them to think badly about you 1339 01:15:43,360 --> 01:15:44,190 If they understand the facts 1340 01:15:44,194 --> 01:15:46,434 On the front page times new york, 1341 01:15:46,429 --> 01:15:48,499 Then you shouldn't do it. 1342 01:15:49,263 --> 01:15:52,163 Narrator: Fifteen months after the opening salvo 1343 01:15:56,503 --> 01:16:00,273 But by the way he or she is not anticipated or welcomed. 1344 01:16:00,273 --> 01:16:03,673 Michael schmidt: This is the person who makes bets on a company, 1345 01:16:03,676 --> 01:16:05,936 Who is now trying to get a regulator 1346 01:16:05,944 --> 01:16:07,814 To reduce the company. 1347 01:16:07,812 --> 01:16:09,142 He needs to have a victim. 1348 01:16:09,146 --> 01:16:12,146 These people have been harmed by this company, 1349 01:16:12,149 --> 01:16:14,049 Able to connect with the regulator, 1350 01:16:14,050 --> 01:16:17,420 And show the regulator how they were hurt by this 1351 01:16:17,420 --> 01:16:20,750 He has paid nonprofit Hispanic groups 1352 01:16:20,756 --> 01:16:22,856 For their help in this matter. 1353 01:16:22,858 --> 01:16:25,188 Richard: not documented former distributor 1354 01:16:25,193 --> 01:16:26,433 Will not go to the government 1355 01:16:26,427 --> 01:16:29,457 And give them their name and the information. 1356 01:16:29,463 --> 01:16:31,103 Which people tend not to do 1357 01:16:31,097 --> 01:16:34,567 When they become victims pyramid schemes too. 1358 01:16:34,567 --> 01:16:36,067 They feel embarrassed. They feel embarrassed. 1359 01:16:36,068 --> 01:16:40,538 They feel it's like that part of perpetuating crime. 1360 01:16:40,804 --> 01:16:44,574 Ackman: So we stretch out for grassroots latino organizations 1361 01:16:44,575 --> 01:16:46,975 For national victims campaign recruitment 1362 01:16:46,977 --> 01:16:51,477 I think we commit as much as $ 130,000 for that effort. 1363 01:16:51,481 --> 01:16:53,811 Mr. Ackman has made many donations 1364 01:16:53,816 --> 01:16:56,076 For these nonprofits organizations, things like that, 1365 01:16:56,084 --> 01:16:57,554 That's all don't know about 1366 01:16:57,552 --> 01:16:59,652 We only know that piece. 1367 01:17:00,320 --> 01:17:01,020 So people ask, 1368 01:17:01,021 --> 01:17:03,591 Does he only bring information to the regulator, 1369 01:17:08,526 --> 01:17:10,656 Ackman: The day after tomorrow is pretty horrible New York Times article, 1370 01:17:10,662 --> 01:17:11,332 I am having an advisory board meeting. 1371 01:17:11,329 --> 01:17:12,859 1372 01:17:12,863 --> 01:17:15,033 I said, "Look, what should we do? 1373 01:17:15,031 --> 01:17:17,401 " I do not believe the government has not acted. " 1374 01:17:17,400 --> 01:17:20,270 And maybe the right thing to do whether we cover the position, 1375 01:17:20,269 --> 01:17:22,899 And just decide we somehow interfere. 1376 01:17:22,905 --> 01:17:24,335 Because the government is afraid 1377 01:17:24,339 --> 01:17:26,009 Enter the situation with a short seller. 1378 01:17:26,007 --> 01:17:28,307 = = We really have a discussion. 1379 01:17:29,742 --> 01:17:33,582 In the middle of the discussion, I got a call from our trader. 1380 01:17:33,580 --> 01:17:37,720 Our head trader, Ramy, said, "bills, herbalife supplies have been stopped. " 1381 01:17:37,717 --> 01:17:42,717 And I said, " Maybe there is a god. " 1382 01:17:44,656 --> 01:17:46,616 Less than 90 minutes ago, we have learned 1383 01:17:46,625 --> 01:17:47,715 Controversial maker 1384 01:17:47,726 --> 01:17:49,056 Shaky health and supplements 1385 01:17:49,060 --> 01:17:50,490 Has been served with notifications 1386 01:17:50,494 --> 01:17:51,994 By federal trade commission 1387 01:17:51,995 --> 01:17:53,055 That will be investigated. 1388 01:17:53,062 --> 01:17:56,502 Male reporter: The investigation can last six months to one year 1389 01:17:56,498 --> 01:17:58,928 The stock has just been hit by 1390 01:17:58,933 --> 01:18:00,633 And actually gives ackman 1391 01:18:00,634 --> 01:18:02,404 Return to somewhat near the break-even point 1392 01:18:02,402 --> 01:18:05,072 Female reporter: Herbalife said that it welcomed the investigation, 1393 01:18:05,071 --> 01:18:07,701 And "believe that Herbalife is according to 1394 01:18:07,706 --> 01:18:10,536 " with all that applies laws and regulations. " 1395 01:18:10,542 --> 01:18:12,112 This is one thing 1396 01:18:12,110 --> 01:18:14,010 Herbalife wants to avoid, 1397 01:18:14,011 --> 01:18:15,881 I can tell you that, from the first day 1398 01:18:16,311 --> 01:18:17,741 Icahn: Now with ftc there, 1399 01:18:17,746 --> 01:18:19,906 I just hope so we get a clean bill of health, 1400 01:18:19,914 --> 01:18:22,884 Because I really did it thought that this company... 1401 01:18:22,883 --> 01:18:25,423 Yes, yes, do some marketing things. 1402 01:18:25,418 --> 01:18:26,078 Is that wrong 1403 01:18:26,085 --> 01:18:28,385 See, do they make an appointment? Maybe, 1404 01:18:28,387 --> 01:18:31,017 But there are also many people make lots of money 1405 01:18:31,022 --> 01:18:34,922 And ackman has this coat, "I keep Hispanics." 1406 01:18:34,925 --> 01:18:37,625 Why not? go save himself 1407 01:18:39,762 --> 01:18:43,402 Anchor women: we want to bring you updates on this latest news 1408 01:18:43,398 --> 01:18:44,128 In herbalife 1409 01:18:44,132 --> 01:18:46,272 Herbalife now is being investigated 1410 01:18:46,267 --> 01:18:48,397 By fbi, by the federal government, 1411 01:18:48,402 --> 01:18:49,832 And this looks like 1412 01:18:49,836 --> 01:18:51,296 escalation 1413 01:18:51,304 --> 01:18:54,344 From the probe, but the company itself, 1414 01:18:54,340 --> 01:18:57,940 Say they have there is no knowledge about it at all 1415 01:18:57,943 --> 01:18:59,613 Ackman: You have a lot of government regulators, agencies 1416 01:18:59,611 --> 01:19:00,941 Seeing a company from civilian 1417 01:19:00,945 --> 01:19:02,475 And criminal point of view. 1418 01:19:02,479 --> 01:19:03,439 And I think That's where the rubber is 1419 01:19:03,446 --> 01:19:04,806 Finally meets the path, 1420 01:19:04,814 --> 01:19:06,854 With conditions whether it's herbalife or not 1421 01:19:07,381 --> 01:19:10,381 Gets found pyramid scheme 1422 01:19:10,385 --> 01:19:11,745 My father is asking questions 1423 01:19:11,753 --> 01:19:14,093 It's always risky call your father 1424 01:19:22,762 --> 01:19:23,962 Is that a pyramid scheme? 1425 01:19:23,963 --> 01:19:27,503 - Father, if not find out now... 1426 01:19:39,643 --> 01:19:42,313 Brooks: I always hate bullies. 1427 01:19:42,712 --> 01:19:47,152 People who use them strength of personality 1428 01:19:47,150 --> 01:19:49,020 To drive others around. 1429 01:19:49,817 --> 01:19:51,717 - Good morning sir. Brooks. -Good morning. 1430 01:19:51,719 --> 01:19:54,149 When I see victims of these things, 1431 01:19:54,154 --> 01:19:57,764 I hope I can do something to fight 1432 01:19:57,757 --> 01:19:59,417 Against bullies. 1433 01:19:59,924 --> 01:20:01,264 We are ready. 1434 01:20:01,758 --> 01:20:02,018 Me too. 1435 01:20:02,025 --> 01:20:04,885 And we will get rid of this When we get to the courthouse. 1436 01:20:06,827 --> 01:20:09,497 We object to the solution! 1437 01:20:09,497 --> 01:20:10,427 Herbalife! 1438 01:20:11,932 --> 01:20:13,332 Herbalife! 1439 01:20:18,203 --> 01:20:21,943 Brooks: Today's session is final approval session 1440 01:20:21,941 --> 01:20:26,811 I submit a fairly long one objections to settlement 1441 01:20:26,812 --> 01:20:32,552 In order for herbalife to release of the 1.5 million class members 1442 01:20:32,551 --> 01:20:34,781 With a reward of $ 15 million, 1443 01:20:34,786 --> 01:20:36,686 Is it down very cheap 1444 01:20:36,687 --> 01:20:39,247 We will follow you in, okay 1445 01:20:39,256 --> 01:20:41,156 OK, yeah 1446 01:20:42,024 --> 01:20:46,494 Brooks: I hope so the judge comes out and says, 1447 01:20:46,495 --> 01:20:48,995 "I really have a problem with this solution 1448 01:20:48,997 --> 01:20:52,197 " I think Mr. Brooks and his objections 1449 01:20:52,200 --> 01:20:54,770 "has raised some concerns, 1450 01:20:54,769 --> 01:20:57,469 "and I won't approve this agreement 1451 01:20:57,471 --> 01:20:59,371 I mean, it's me... 1452 01:20:59,372 --> 01:21:01,342 That's my dream. head 1453 01:21:18,589 --> 01:21:22,329 Oh yes. 1454 01:21:22,327 --> 01:21:25,057 I think there are very few doubts Nothing... Nothing moves it. 1455 01:21:25,063 --> 01:21:25,763 Not one bit. 1456 01:21:25,763 --> 01:21:27,833 Contreras: Whatever decision he makes, 1457 01:21:27,831 --> 01:21:30,571 We win today, 1458 01:21:30,567 --> 01:21:33,827 Because you carry a message we 1459 01:21:33,836 --> 01:21:36,896 1460 01:21:37,738 --> 01:21:41,008 1461 01:21:41,008 --> 01:21:42,568 1462 01:21:42,576 --> 01:21:45,576 1463 01:21:45,579 --> 01:21:46,839 1464 01:21:46,846 --> 01:21:49,206 1465 01:21:49,215 --> 01:21:52,345 And for him to say it doesn't matter, 1466 01:21:52,351 --> 01:21:53,221 They're important. 1467 01:21:53,218 --> 01:21:55,888 And we don't will stop this fight 1468 01:21:55,887 --> 01:21:58,047 We thank you. I thank you. 1469 01:21:58,055 --> 01:21:59,485 -Yes. Thank you. -Thank you. 1470 01:22:02,891 --> 01:22:05,091 Thank you. Thank you for helping us. 1471 01:22:05,094 --> 01:22:11,334 I am very afraid of herbalife will say to ftc, 1472 01:22:11,333 --> 01:22:13,533 "see, a federal district judge 1473 01:22:13,535 --> 01:22:14,265 " has agreed to the settlement. 1474 01:22:14,269 --> 01:22:17,699 "We have a release of of 1.5 million class members, 1475 01:22:17,705 --> 01:22:18,995 " we pay some money... " 1476 01:22:19,006 --> 01:22:21,566 And there are at least the least a faction 1477 01:22:21,575 --> 01:22:22,905 In ftc that will say, 1478 01:22:22,909 --> 01:22:25,409 "well, why aren't we? just like onboard? 1479 01:22:25,411 --> 01:22:27,311 " Maybe we'll make it they pay fines 1480 01:22:27,312 --> 01:22:31,112 "But the point is we don't go to heart 1481 01:22:31,115 --> 01:22:36,485 " why will this industry continue to burn people. " 1482 01:22:40,957 --> 01:22:43,657 Ackman: So how can they do it? Get away with this? 1483 01:22:43,660 --> 01:22:47,230 What pyramid scheme does have five billion in revenue, 1484 01:22:47,230 --> 01:22:49,360 Is it registered on the new York Stock Exchange, 1485 01:22:49,365 --> 01:22:51,325 Is it audited by Pricewaterhouse? 1486 01:22:51,333 --> 01:22:55,903 Now big lies are used by by totalitarian regimes, 1487 01:22:55,904 --> 01:22:59,074 and by Nazis, and by many people. 1488 01:22:59,073 --> 01:23:01,873 And people generally believe in big lies 1489 01:23:01,875 --> 01:23:03,265 Because they are so brave, 1490 01:23:03,276 --> 01:23:06,136 That's how might be wrong 1491 01:23:06,145 --> 01:23:07,275 Madoff is managing $ 50 billion. 1492 01:23:07,279 --> 01:23:11,579 That idea $ 50 billion money manager is running a pyramid scheme, 1493 01:23:11,583 --> 01:23:14,183 Well, that's why people continue to put money into it, 1494 01:23:14,185 --> 01:23:16,445 Because that is indeed the biggest lie of all time. 1495 01:23:16,453 --> 01:23:18,853 A small lie people don't go with 1496 01:23:18,855 --> 01:23:21,515 Big lies people get away. 1497 01:23:25,727 --> 01:23:27,287 Kirby: You open your nutrition club, 1498 01:23:27,296 --> 01:23:29,956 You realize that must recruit people, 1499 01:23:29,965 --> 01:23:33,665 And start making commissions from your downline 1500 01:23:33,933 --> 01:23:35,473 But I can't lie to people 1501 01:23:35,468 --> 01:23:38,898 And tell them, "You will make money really good," 1502 01:23:38,904 --> 01:23:40,974 When I know I have five nutritional clubs 1503 01:23:40,972 --> 01:23:42,842 That has happened operating for six months, 1504 01:23:42,840 --> 01:23:45,340 And we haven't done it to make a profit 1505 01:23:46,375 --> 01:23:50,175 So, uh, we try to make it their business model works, 1506 01:23:50,545 --> 01:23:52,575 And keep away from recruitment 1507 01:23:52,581 --> 01:23:54,081 And trying to sell his dream, 1508 01:23:54,082 --> 01:23:56,182 We try to only sell their products. 1509 01:23:57,317 --> 01:23:59,277 That doesn't work. 1510 01:24:00,919 --> 01:24:02,989 The product is too expensive And you are trying to get people 1511 01:24:02,988 --> 01:24:04,588 To drink liquid shakes more than eating food 1512 01:24:04,589 --> 01:24:07,489 1513 01:24:07,491 --> 01:24:10,861 You go against human nature here 1514 01:24:13,462 --> 01:24:15,962 Mostly, we will eat half of that, 1515 01:24:15,965 --> 01:24:18,965 And try selling the other half. 1516 01:24:18,968 --> 01:24:21,438 Interviewer: What happened to the others? 1517 01:24:21,437 --> 01:24:24,037 You throw it in the trash. 1518 01:24:24,905 --> 01:24:27,405 We keep it for one and a half years. 1519 01:24:27,408 --> 01:24:29,068 For many people on herbalife, 1520 01:24:29,076 --> 01:24:30,536 They will do it go find a job 1521 01:24:30,544 --> 01:24:32,944 And feel like a failure and be embarrassed, 1522 01:24:32,946 --> 01:24:35,146 Because they bring all their friends and family 1523 01:24:35,148 --> 01:24:36,208 In this fraud. 1524 01:24:36,215 --> 01:24:39,175 Let's see if I can handle this without choking on myself 1525 01:24:39,184 --> 01:24:40,954 But I'm one of them The lucky one 1526 01:24:40,952 --> 01:24:44,492 Lucky to be found new and emerging industry to enter into, 1527 01:24:44,488 --> 01:24:46,388 It runs correctly with a window display 1528 01:24:46,389 --> 01:24:47,759 I have built it. 1529 01:24:47,757 --> 01:24:53,557 We just made a quick button and changed it to the steam room. 1530 01:24:56,463 --> 01:24:58,133 We help people to lose weight, 1531 01:24:58,132 --> 01:25:01,502 Now we help people to quit smoking So everything works, but not as a nutrition club. 1532 01:25:03,003 --> 01:25:07,573 Fortunately I am not inferior to my collateral with the bank I still have a car. 1533 01:25:09,308 --> 01:25:12,978 Mark Hughes: Trust me 1534 01:25:12,979 --> 01:25:15,649 I can tell you with absolute sincerity, 1535 01:25:18,082 --> 01:25:18,822 1536 01:25:18,817 --> 01:25:21,317 1537 01:25:21,319 --> 01:25:27,789 Wildest dreams You've thought about it It can be a reality in Herbalife. 1538 01:25:36,332 --> 01:25:41,342 I go home today and this is on my door 1539 01:25:41,870 --> 01:25:44,540 This is addressed to me. It says, "Dear Ms. Contreras. 1540 01:25:44,540 --> 01:25:46,540 " on July 15, 2014 "univision chicago shows a piece 1541 01:25:46,542 --> 01:25:48,782 " where the following statement is issued 1542 01:25:48,777 --> 01:25:51,347 "According to lulac's julie contreras, 1543 01:25:51,347 --> 01:25:54,077 " There are fears in the community 1544 01:25:54,083 --> 01:25:55,783 "Herbalife spread the rumor 1545 01:25:55,784 --> 01:25:57,684 " that they make accusations 1546 01:25:57,685 --> 01:25:59,615 "against the company, 1547 01:25:59,620 --> 01:26:00,620 " will be reported to the immigration officer. " 1548 01:26:00,621 --> 01:26:03,051 They say," we suspect that is your statement 1549 01:26:03,056 --> 01:26:05,916 1550 01:26:05,925 --> 01:26:08,225 "is the product misinformed, 1551 01:26:08,227 --> 01:26:13,157 " distributed by pershing square capital management. " 1552 01:26:13,165 --> 01:26:16,465 Who in hell pershing square capital management? 1553 01:26:16,468 --> 01:26:18,938 I've heard it in the paper. Nobody pays us. 1554 01:26:18,937 --> 01:26:21,867 "thus this statement is illegal and defamatory. " 1555 01:26:21,873 --> 01:26:22,973 " the statement is illegal and defamatory. " 1556 01:26:22,974 --> 01:26:24,274 Herbalife Distributors have been intimidated, 1557 01:26:24,275 --> 01:26:25,005 Has threatened our people. 1558 01:26:25,009 --> 01:26:29,279 Threatened by their legal status. 1559 01:26:29,279 --> 01:26:32,679 Threatened by physical danger. 1560 01:26:32,682 --> 01:26:37,222 1561 01:26:37,219 --> 01:26:40,149 1562 01:26:40,155 --> 01:26:43,155 1563 01:26:43,158 --> 01:26:46,458 1564 01:26:46,461 --> 01:26:48,491 Waiting outside walmarts for them, 1565 01:26:48,496 --> 01:26:50,356 or a grocery store that they go to, 1566 01:26:50,364 --> 01:26:55,074 To collect their $ 1,500, or $ 500, or $ 200 It is said, "we demand that you stop and stop from this behavior 1567 01:26:55,068 --> 01:26:58,498 " and you submit it a written revocation of your statement 1568 01:26:58,504 --> 01:27:02,844 "to immediately reveal. 1569 01:27:02,841 --> 01:27:04,371 " that we might be right your misunderstanding 1570 01:27:07,010 --> 01:27:09,480 "regarding herbalife relations 1571 01:27:09,479 --> 01:27:11,509 " in the latino community. 1572 01:27:11,514 --> 01:27:13,384 1573 01:27:13,382 --> 01:27:17,752 1574 01:27:17,753 --> 01:27:22,163 1575 01:27:22,157 --> 01:27:25,857 1576 01:27:31,231 --> 01:27:33,271 my dad used to tell me, 1577 01:27:33,267 --> 01:27:36,597 "never apologize to be Mexican." 1578 01:27:36,603 --> 01:27:38,743 And we used to grow and we used to say, 1579 01:27:38,738 --> 01:27:41,168 "We're Mexican-Americans." 1580 01:27:41,173 --> 01:27:44,973 And my father died when he was 50 years old I think I have this tiger inside me 1581 01:27:47,310 --> 01:27:51,380 My father is inside me. 1582 01:27:51,381 --> 01:27:53,951 I won't apologize for who I am, 1583 01:27:54,749 --> 01:27:56,879 And I'm sure, of course, 1584 01:27:56,885 --> 01:28:00,485 Will not apologize 1585 01:28:00,488 --> 01:28:01,818 To bring a truth to the public 1586 01:28:01,822 --> 01:28:04,422 From what happened to my community 1587 01:28:04,424 --> 01:28:07,594 The truth is not far away. 1588 01:28:07,593 --> 01:28:11,233 Johnson: This is recruitment, 1589 01:28:27,978 --> 01:28:28,908 1590 01:28:28,913 --> 01:28:31,253 Means bringing new distributors to our company, 1591 01:28:31,248 --> 01:28:34,248 Which is the most vital part of our bloodstream. 1592 01:28:34,251 --> 01:28:37,151 We bring new ones distributors in, we grow. 1593 01:28:37,153 --> 01:28:38,853 It's that simple 1594 01:28:38,854 --> 01:28:39,424 It's that simple 1595 01:28:39,421 --> 01:28:43,921 And the company has built up its entire reputation, 1596 01:28:43,925 --> 01:28:45,485 His whole life is recruited. 1597 01:28:45,493 --> 01:28:46,663 Our top dog, 1598 01:28:46,660 --> 01:28:49,530 Greg calls them "hunters" out there, 1599 01:28:49,529 --> 01:28:52,229 Our hunter, our main distributor, 1600 01:28:52,231 --> 01:28:53,531 Our chairman club, our press team, 1601 01:28:53,532 --> 01:28:55,132 They are professional in this matter. 1602 01:28:55,133 --> 01:28:56,273 No one can do it better. 1603 01:28:56,267 --> 01:28:57,367 You are next to Alan Lorenz, 1604 01:28:57,368 --> 01:28:59,998 And he will recruit cabdrivers, and busboys, 1605 01:29:00,003 --> 01:29:01,503 taxis And servants, and everyone. 1606 01:29:01,504 --> 01:29:02,704 He doesn't care who it is. 1607 01:29:02,705 --> 01:29:04,805 Blast! He caught it in this game. 1608 01:29:04,807 --> 01:29:06,537 Ackman: So, herbalife, 1609 01:29:06,542 --> 01:29:09,882 The business opportunity is a scam 1610 01:29:09,878 --> 01:29:12,808 This is being arranged not only by senior management, 1611 01:29:12,814 --> 01:29:14,714 By the club chairman members, 1612 01:29:14,715 --> 01:29:16,045 By the presidential team, 1613 01:29:16,049 --> 01:29:19,749 They are conceived, designed, and run a strategy Exploiting the poor. 1614 01:29:19,752 --> 01:29:21,252 Recruitment tactics, are very positive most. 1615 01:29:21,253 --> 01:29:24,693 Sometimes leading people down the wrong path 1616 01:29:24,689 --> 01:29:27,619 1617 01:29:27,625 --> 01:29:31,125 $ 4,000, jam into it, with instant distribution 1618 01:29:31,128 --> 01:29:33,128 Load the product on. 1619 01:29:33,130 --> 01:29:34,530 See you later. 1620 01:29:34,531 --> 01:29:35,561 Good luck. 1621 01:29:35,565 --> 01:29:37,995 Credit card bills come, couples say, 1622 01:29:38,000 --> 01:29:41,370 "how are we going to pay this? 1623 01:29:41,370 --> 01:29:43,470 " You don't sell the item it is in the garage 1624 01:29:43,472 --> 01:29:44,702 "it's in the kitchen. It's out there..." 1625 01:29:44,706 --> 01:29:47,606 Ackman: This company is a fraud before michael johnson 1626 01:29:47,608 --> 01:29:50,578 Michael Johnson increases cheating, 1627 01:29:50,577 --> 01:29:53,737 Brought modern management techniques 1628 01:29:53,746 --> 01:29:56,046 Johnson: So what happened today? 1629 01:29:56,048 --> 01:29:57,578 Today, we recruit. 1630 01:29:57,582 --> 01:29:58,982 We are still a recruitment company 1631 01:29:58,983 --> 01:30:01,023 We shouldn't be like this. 1632 01:30:01,018 --> 01:30:04,588 Michael Johnson is a predator, good? 1633 01:30:04,588 --> 01:30:08,088 This is a criminal company, okay 1634 01:30:08,091 --> 01:30:10,791 I hope you listen, michael 1635 01:30:11,559 --> 01:30:13,789 It's time to close the company goes down 1636 01:30:13,795 --> 01:30:16,455 Bill Ackman's gets a lot of money 1637 01:30:16,464 --> 01:30:17,164 Invest this. 1638 01:30:17,164 --> 01:30:19,404 And I think the only he cares about 1639 01:30:19,399 --> 01:30:20,829 Being the richest person In the world. 1640 01:30:26,537 --> 01:30:29,737 Well, you guys have been very patient Stay here. Thank you. 1641 01:30:29,741 --> 01:30:31,371 Reporter woman 1: A while ago, 1642 01:30:34,543 --> 01:30:35,643 Pershing capital square ackman bill 1643 01:30:35,645 --> 01:30:37,005 Delivering what is promised will be a deadly blow to herbalife. 1644 01:30:37,013 --> 01:30:39,813 1645 01:30:39,815 --> 01:30:45,285 Male reporter 1: investor has just got three hours, skewed, presentation of rules 1646 01:30:45,287 --> 01:30:47,487 Not that they were promised the day before. 1647 01:30:47,489 --> 01:30:52,119 Female reporter 1: He tries basically to make his wish come true, 1648 01:30:52,126 --> 01:30:53,286 And they are not impressed. 1649 01:30:53,293 --> 01:30:57,633 And in fact, shares are up more than 23% 1650 01:30:57,630 --> 01:30:59,700 Come in at a six-year high. 1651 01:30:59,698 --> 01:31:00,428 Here it comes, guys. 1652 01:31:00,432 --> 01:31:02,002 Female reporter 2: Herbalife says in a statement, 1653 01:31:02,000 --> 01:31:04,330 "Bill, please say" further shown today 1654 01:31:04,335 --> 01:31:06,565 "that is the fact is on our side 1655 01:31:06,570 --> 01:31:07,500 male reporter 2: This is very unusual 1656 01:31:07,504 --> 01:31:10,004 That's what you can pay a company with fraud, 1657 01:31:10,006 --> 01:31:11,536 And then think you can get away with it, 1658 01:31:11,540 --> 01:31:14,470 Without type smoking proof of weapons 1659 01:31:14,476 --> 01:31:16,776 That is not owned by ackman. 1660 01:31:20,547 --> 01:31:22,247 Congratulations, sir. 1661 01:31:22,249 --> 01:31:23,749 Good. 1662 01:31:25,016 --> 01:31:26,346 What day 1663 01:31:26,850 --> 01:31:28,180 What day 1664 01:31:30,452 --> 01:31:34,152 That is a good day. It's a very good day. 1665 01:32:01,382 --> 01:32:03,182 Contreras: Herbalife's a large company. 1666 01:32:03,184 --> 01:32:06,424 And after they send me the letter stops and stops, 1667 01:32:06,420 --> 01:32:07,920 I send them a response. 1668 01:32:07,921 --> 01:32:09,721 And the answer is, 1669 01:32:09,722 --> 01:32:11,092 I welcome them 1670 01:32:11,090 --> 01:32:12,290 To come to tell me 1671 01:32:12,291 --> 01:32:13,891 About their commitment 1672 01:32:13,892 --> 01:32:14,922 To the latino community. 1673 01:32:14,926 --> 01:32:17,726 And we invite them to come to our church 1674 01:32:19,028 --> 01:32:23,968 For months, they continue _ our strings together 1675 01:32:23,967 --> 01:32:26,427 "okay, this date..." then canceled 1676 01:32:26,436 --> 01:32:28,766 "okay, this date..." then canceled 1677 01:32:28,771 --> 01:32:29,871 Then they have courage 1678 01:32:29,872 --> 01:32:32,072 To invite us go to their gala 1679 01:32:32,074 --> 01:32:35,844 And pay for us plane tickets and pay for our hotel, 1680 01:32:40,947 --> 01:32:43,747 Same as I sent Herbalife a letter, 1681 01:32:43,750 --> 01:32:47,520 That's the same I sent a receipt. 1682 01:32:50,455 --> 01:32:52,655 About all things he is doing, 1683 01:32:52,657 --> 01:32:54,087 But, "okay, you do these things, 1684 01:32:54,091 --> 01:32:57,991 " But it turns out not really helped my people 1685 01:32:57,994 --> 01:33:01,304 And by the way, "we are here." 1686 01:33:01,297 --> 01:33:02,057 Hello. 1687 01:33:02,064 --> 01:33:03,464 Hey. Thank you for having. 1688 01:33:03,465 --> 01:33:06,225 Contreras: I'm glad you're here Yes. 1689 01:33:06,234 --> 01:33:08,034 -How do you feel? -I dont know him. 1690 01:33:08,035 --> 01:33:10,265 He is from another world, 1691 01:33:10,270 --> 01:33:12,970 And he entered our world for a while. 1692 01:33:13,939 --> 01:33:15,939 Apart from investment, 1693 01:33:15,941 --> 01:33:18,941 I will pursue this the end of the earth... 1694 01:33:18,944 --> 01:33:20,214 OK. 1695 01:33:20,211 --> 01:33:21,341 Until the company closes, 1696 01:33:21,345 --> 01:33:23,845 People who cause harm are held accountable, 1697 01:33:23,847 --> 01:33:25,777 And I am also committed to give 100% 1698 01:33:25,782 --> 01:33:27,682 Of any benefit I made from this 1699 01:33:27,683 --> 01:33:31,083 I think we will make more than 100 million rupiah. 1700 01:33:31,086 --> 01:33:32,286 This is a big number. 1701 01:33:32,287 --> 01:33:35,247 I really don't know the previous latino community 1702 01:33:35,256 --> 01:33:36,416 You are the principle of sacrifice 1703 01:33:36,423 --> 01:33:40,223 So the money will focus on latino communities 1704 01:33:43,628 --> 01:33:47,028 Can you send two or three officers here to church, 1705 01:33:47,032 --> 01:33:48,972 Because there are three coach buses 1706 01:33:48,967 --> 01:33:50,367 Herbalife protesters 1707 01:33:50,368 --> 01:33:53,268 Like for herbalife. 1708 01:33:55,070 --> 01:33:57,470 Contreras: Herbalife pays them to come. 1709 01:33:57,473 --> 01:33:58,713 One of them, he said, 1710 01:33:58,707 --> 01:34:01,637 "they gave us $ 200 to be out there." 1711 01:34:01,975 --> 01:34:04,505 I said, "oh, well, I can't blame you." 1712 01:34:04,511 --> 01:34:08,411 I can't blame my people Who doesn't need $ 200? 1713 01:34:08,414 --> 01:34:11,054 Crowd: herbalife! Herbalife! Herbalife! 1714 01:34:11,049 --> 01:34:13,879 Herbalife! Herbalife! Herbalife! 1715 01:34:13,885 --> 01:34:16,515 Herbalife! Herbalife! Herbalife! 1716 01:34:16,520 --> 01:34:18,090 Herbalife! Herbalife! 1717 01:34:18,088 --> 01:34:21,158 Herbalife! Herbalife! Herbalife! 1718 01:34:21,157 --> 01:34:23,187 Hello, Herbalife. 1719 01:34:32,566 --> 01:34:34,696 We are ready for rock and roll with this company 1720 01:34:34,702 --> 01:34:36,572 We have a length the road in front of us, 1721 01:34:36,570 --> 01:34:39,800 And guess what, we just started, right? 1722 01:34:39,806 --> 01:34:41,366 This is the name of the game. 1723 01:34:50,382 --> 01:34:52,882 So it's history I am from a family of immigrants 1724 01:34:52,884 --> 01:34:57,854 Unless my family immigrates to this country in the 1890s. 1725 01:34:57,855 --> 01:34:58,785 120 years ago 1726 01:34:58,789 --> 01:35:03,189 And my great-grandfather was born in Ukraine 1727 01:35:03,193 --> 01:35:04,433 Which is part of Russia. 1728 01:35:04,427 --> 01:35:10,427 So at the age of 17 years, he walks 1,400 miles to austria 1729 01:35:11,500 --> 01:35:14,000 Someone teaches him how to become a tailor 1730 01:35:14,002 --> 01:35:17,642 And then he goes from austria to hamburg, 1731 01:35:18,538 --> 01:35:21,708 And he went aboard and he came to this country. 1732 01:35:21,707 --> 01:35:23,567 He comes without money. 1733 01:35:23,575 --> 01:35:25,905 Then finally, he starts making a coat, 1734 01:35:25,910 --> 01:35:28,840 And he has his own factory on staten island 1735 01:35:28,846 --> 01:35:30,276 So I'm here. 1736 01:35:30,280 --> 01:35:33,880 I'm one of the most lucky people in America Eh, I remember, 1737 01:35:33,883 --> 01:35:35,283 Imagine if I was great grandfather 1738 01:35:35,284 --> 01:35:37,354 It has arrived in America, 1739 01:35:37,352 --> 01:35:38,582 And instead of being a tailor, 1740 01:35:38,586 --> 01:35:40,316 Someone sucks it into a pyramid scheme. Right? 1741 01:35:40,321 --> 01:35:42,791 So I stand on the shoulder the person who came before me, 1742 01:35:42,790 --> 01:35:46,120 This is my obligation to protect people who is coming now 1743 01:35:46,126 --> 01:35:50,186 You must understand we will protect this company, 1744 01:35:50,196 --> 01:35:53,456 We will grow this company, 1745 01:35:53,465 --> 01:35:55,095 And all of this outside sources 1746 01:35:55,099 --> 01:35:57,099 Who wants to describe us, 1747 01:35:57,101 --> 01:35:59,671 1748 01:35:59,670 --> 01:36:01,940 We will capture narratives from them 1749 01:36:01,938 --> 01:36:04,168 Time is on our side. 1750 01:36:04,372 --> 01:36:05,072 We have spent $ 50 million... 1751 01:36:05,073 --> 01:36:10,813 A little more than $ 50 million in the last... Now it's been three years 1752 01:36:10,812 --> 01:36:12,912 In our investigation from the company. 1753 01:36:12,914 --> 01:36:16,254 I'm glad there are many governments organizations 1754 01:36:16,250 --> 01:36:17,220 Look into herbalife. 1755 01:36:17,217 --> 01:36:19,747 But I'm a little frustrated about speed 1756 01:36:19,752 --> 01:36:21,792 The problem is that is being handled 1757 01:36:21,787 --> 01:36:26,487 And you are with us together, is family, 1758 01:36:26,491 --> 01:36:29,491 And no one messes it up with family. 1759 01:36:29,494 --> 01:36:29,834 Right? 1760 01:36:29,827 --> 01:36:32,887 - No one. - 1761 01:36:35,664 --> 01:36:37,164 No one. 1762 01:36:40,067 --> 01:36:43,537 So, uh, this is a very lonely battle. 1763 01:36:43,538 --> 01:36:45,768 Our fight against herbalife. 1764 01:36:45,773 --> 01:36:47,943 Contreras: No more. 1765 01:36:49,708 --> 01:36:52,938 We take this fight smart to the road 1766 01:36:52,945 --> 01:36:54,005 We will win. 1767 01:36:54,012 --> 01:36:55,282 And we keep you closed. 1768 01:36:55,279 --> 01:36:56,909 And this person won't go 1769 01:36:56,913 --> 01:36:58,983 With what he thinks he will get away with it, 1770 01:36:58,981 --> 01:37:00,411 Because he doesn't fight me. 1771 01:37:00,415 --> 01:37:03,415 He thought he was against me, he was fighting with the army. 1772 01:37:03,418 --> 01:37:05,448 And we have soldiers of people 1773 01:37:05,453 --> 01:37:07,223 Doing good out there In the world. 1774 01:37:07,221 --> 01:37:10,261 All: herbalife! Herbalife! Herbalife! 1775 01:37:10,257 --> 01:37:13,517 Herbalife! Herbalife! Herbalife! Herbalife! 1776 01:37:13,526 --> 01:37:17,256 Herbalife has everything from various things 1777 01:37:17,263 --> 01:37:19,403 That might be not shorting. 1778 01:37:19,398 --> 01:37:23,398 Of course not songs a billion dollars 1779 01:37:23,402 --> 01:37:24,502 And in a way that is so common. 1780 01:37:24,503 --> 01:37:27,003 They are all victims. This is Olivia Torres. 1781 01:37:27,005 --> 01:37:27,665 Cohan: But he is in a crusade. 1782 01:37:27,672 --> 01:37:32,172 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. 1783 01:37:32,176 --> 01:37:36,306 Ackman: when you meet people who have been harmed 1784 01:37:36,313 --> 01:37:38,213 And you hear their story, 1785 01:37:38,214 --> 01:37:39,184 1786 01:37:39,181 --> 01:37:41,451 This is very moving and is very disturbing. 1787 01:37:41,449 --> 01:37:44,749 And that fact companies know they have been ripped off, 1788 01:37:44,752 --> 01:37:48,092 Literally, millions of these people are from time to time. 1789 01:37:48,088 --> 01:37:50,788 And they don't care. 1790 01:37:50,790 --> 01:37:52,820 That's amazing. 1791 01:37:52,825 --> 01:37:55,355 You know, this is amazing. 1792 01:37:55,360 --> 01:37:58,630 We are very, very sure that as ftc 1793 01:37:58,629 --> 01:38:01,759 Come to them finality of investigation, 1794 01:38:01,765 --> 01:38:03,595 Or they get all facts on the table, 1795 01:38:03,600 --> 01:38:07,600 They will leave, "this is great company." 1796 02:43:18,004 --> 01:38:22,184 "the future is light cannot be compared." 1797 01:38:22,184 --> 01:38:24,954 - Let's go herbalife! 1798 01:38:41,368 --> 01:38:46,938 Crowds: Herbalife! Herbalife! Herbalife! Herbalife! 1799 01:39:02,288 --> 01:39:04,618 Ftc has accused herbalife 1800 01:39:04,624 --> 01:39:06,924 By cheating hundreds of thousands 1801 01:39:07,960 --> 01:39:11,160 Who sees herbalife? promotional campaign 1802 01:39:13,131 --> 01:39:15,031 And signed for what they think 1803 01:39:22,338 --> 01:39:25,968 The dream is described by herbalife is an illusion. 1804 01:39:25,974 --> 01:39:28,214 Mostly herbalife distributors 1805 01:39:28,209 --> 01:39:30,539 Finding them can make little or no money 1806 01:39:30,544 --> 01:39:33,554 Selling herbalife products. 1807 01:39:33,547 --> 01:39:34,707 People who rent space 1808 01:39:34,714 --> 01:39:37,954 To open a nutrition club and work long hours, 1809 01:39:37,950 --> 01:39:41,580 Not making money, or losing money. 1810 01:39:41,586 --> 01:39:43,886 A small percentage of herbalife distributors 1811 01:39:43,888 --> 01:39:45,488 Who makes a lot of money? 1812 01:39:45,489 --> 01:39:46,919 Paid with herbalife, 1813 01:39:46,923 --> 01:39:49,293 Not to sell company products, 1814 01:39:49,292 --> 01:39:51,392 But to buy the product itself, 1815 01:39:51,394 --> 01:39:53,234 Then successfully recruited 1816 01:39:53,229 --> 01:39:56,929 Large networks of others to do the same thing. 1817 01:39:56,932 --> 01:39:59,972 That is why, besides accusing fraud, 1818 01:39:59,968 --> 01:40:02,168 The complaint alleges that herbalife's 1819 01:40:02,170 --> 01:40:03,640 Compensation unfair structure, 1820 01:40:03,638 --> 01:40:07,438 Therefore the distributor award to recruit other people to join 1821 01:40:07,441 --> 01:40:11,411 And buy products to advance in marketing programs, 1822 01:40:11,411 --> 01:40:12,941 Instead of responding to 1823 01:40:12,945 --> 01:40:16,845 Submitted by: www.subtitlecinema.com