Ackman's Pershing Square Issues Background Paper on Founder Circle Member Leslie Stanford
As part of its continued series of in-depth studies of Herbalife's (NYSE: HLF) deceptive practices and recruitment techniques, Pershing Square Capital Management, L.P. released today a white paper on Leslie Stanford, a key player in Herbalife's recruitment schemes and a member of its Founders Circle.
As a pyramid scheme, Herbalife relies upon such recruitment schemes to constantly replace members who drop out each year. It rewards and promotes leaders such as Leslie Stanford, who is a former Board Member of the company and at the center of its recruitment process.
Stanford runs the online recruiting business Success Connection, which sells training videos, recruiting scripts and other business tools to Herbalife distributors. Her recruitment materials make blatantly false claims about making money through Herbalife, telling recruits they can have “big money,” “fancy cars,” “nice homes,” and “travel to exotic locations.”
Herbalife features Stanford at recruitment events and has given her prestigious corporate awards.
A summary outlining Stanford's deceptive practices is attached, with extensive links to exhibits and videos documenting the allegations available on www.herbalifepyramidscheme.com.
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