As the Herbalife pyramid scheme investigation moves into its later innings, the U.S. Securities and Exchange Commission is responding “aggressively” to such schemes. Andrew Ceresney, the SEC’s director of the Division of Enforcement, in a speech in Chicago recently, outlined that protecting the retail investor is their top concern and yet he appeared to use legitimate products as a key point in defining such illegal behavior. If a company’s products are a consideration in defining the legitimacy of a business model, then Herbalife might live to fight another day. Increasingly pyramid schemes target working class and immigrant communities — as is the case…
Is Herbalife Ltd. In The Clear With The SEC? [Analysis]
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
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