Parallels Between SEC Scrutiny In Herbalife, WCM Missing The Point

The Securities and Exchange Commission is pressing charges against an alleged pyramid scheme that targeted Asian and Latino communities with misleading promises, but anyone who is shorting Herbalife Ltd. (NYSE:HLF) along with Pershing Square founder Bill Ackman shouldn’t get their hopes up just yet. WCM, WCM777 used cash for other investments: SEC The SEC alleges that the companies WCM and WCM777, controlled by California resident ‘Phil’ Ming Xu, posed as legitimate multi-level marketing businesses but were actually just Ponzi schemes using investors’ cash to hide the fact that there was never a real business model. The SEC says money was…