For years, it has been speculated by critics that Herbalife could have a layer of fraud to it that transcends the pyramid scheme allegations of late. However, in a new research report prepared by 10/10 Research, and released today, a new layer of allegations of previously unreported - and thus unsubstantiated - criminal impropriety has emerged.
In the report, the researcher outlet makes several grave accusations involving not only money laundering at Herbalife, but also of being a participant in the Latin American drug trade, and suggests that one particular agency that may want to take a closer look at Herbalife's dealings.
As it notes, "the company’s success in countries like Mexico and Colombia and the immense amount of undocumented cash that trades hands at the over 40,000 nutrition clubs between the two countries could make for a perfect environment for wrongdoing involving cash."
In theory, Herbalife makes for a great vehicle for money laundering. Signing up as a distributor is easy and requires little documentation. It’s probably very easy to set up fake accounts under a main distributor, giving the cash a chain of individuals to work its way up and through, while the top distributor uses “cash purchases” of product...