Once again, Herbalife is accused of operating a pyramid scheme, this time by insiders.
The charge of operating a pyramid scheme has dogged Herbalife from its beginning, and for good reasons.
Herbalife is structured as an endless chain;
Requires a large upfront investment of about $3,000 to gain a position on the chain and get payments from new recruits;
The pay plan sends nearly all the money to the top 1%;
Churns through "failures" at an 80% per year rate;
Causes a 99% loss rate year after year among all who sign up. Now, according to an article in the Los Angeles Times, the pyamid scheme charge is coming from those who actually "succeeded", top insiders who want to quit.