Minkow Targeting Supplement Maker

by louabbott on June 2, 2008

Los Angeles Business Journal – June 2, 2008

Five years ago, former ZZZZ Best carpet cleaning charlatan Barry Minkow was released from prison after serving a sentence for fraud, racketeering and tax evasion.

Since then, the one-time San Fernando Valley resident has reinvented himself, first as a minister and now as an unlikely champion of corporate governance reform.

His latest target?

Herbalife Ltd., the nutritional supplement maker and multilevel marketing phenomenon that five years ago also set about reforming its less-than-stellar public image.

The Century City-based company was handed over to Michael Johnson, a slick Walt Disney Co. executive who sought to improve the product line and leave behind its history of marketing abuses – not without some success.

But Minkow, who now lives in San Diego, doesn’t buy it.

He considers the marketer of vitamins and weight-loss shakes little more than a pyramid scheme hiding behind the respectability of a NYSE ticker symbol and $2.5 billion market cap – not to mention what he claims is a purveyor of unsafe products.

“Herbalife is what we call a fully disclosed fraud,” Minkow said. “Everything is there but you have to read between the lines. And when you look at the turnover you can see the model can’t sustain itself, except for the people at the very top.”

Read the entire article at the Los Angeles Business Journal

Also, read our company overview: Herbalife Fact, News and Review

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