Four years ago then-convicted felon Barry Minkow, who had turned from white-collar criminal to claiming to be white-collar fraud-buster, had a new target: Herbalife, the multi-level marketing company best known for its weight-loss shakes.
Shares of Herbalife tumbled 20 percent Tuesday after hedge fund manager David Einhorn asked several questions on the company’s earnings call. I started raising questionsabout the company in March.
Minkow’s concerns were a laundry list of issues. He even included a taunting video, with the tagline, “Should this company try to sue us, it’s been tried and tossed.”
Herbalife responded, saying that “we stand behind the integrity of our company.”
Then, several months later, Minkow’s criticisms of Herbalife disappeared from his website.
Why? According to court documents, Herbalife paid Minkow $300,000 to shut up.