Herbalife Detractor Seeks Federal Investigation

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Feb. 6 (Bloomberg) -- Brent Wilkes, national executive director at League of United Latin American Citizens, explains why his group is pushing for a federal investigation into Herbalife on Bloomberg Television’s “Market Makers.”

We learned about this a long time ago.

Why are you getting involved at this point.

It has come to our attention that anywhere between 60%-80% are latino and we did not know that before.

Herbalife protested and we heard that.

We were very alarmed.

You look at the compensation and 80% of those distributors make absolutely nothing.

Only one half of one percent make a living wage stop that is disconcerting to us and we want to help protect those latinos.

Now that we have, we need to make sure that these latinos are protected.

Did you learn about this?

Did you get this information from mr.

Acumen?

We did not.

We got this from herbalife.

They told us that safety percent of their distributors are spanish.

They made statements that with english-speaking latinos, that is 83% in the united states and an incredible penetration.

Way over the number of latinos in the country.

The statement of gross compensation came from herbalife.

We are not paying attention to what bill ackman is doing.

We are focusing on what is happening to the latino distributors.

They are making nothing.

80% of them are making nothing.

99.5% of them are getting less than the living wage.

This is probably the biggest scam out there.

You just said that you're not paying any attention to what bill ackman is doing.

As your organization had contact with bill ackman or any of his employees?

We have had contact with consultants of bill ackman and they have approached us.

They have hired every latino between the two of them in washington, d.c. what does that mean?

Everybody needs to be clear.

No direct contact between you, anybody in your organization, and bill ackman, himself?

Absolutely not.

What's no direct contact -- no direct contact with herbalife management?

I have had direct contact with herbalife management.

You may know this, they have provided us a statement that says a number of things.

You say your organization has been making ill-informed public declarations and they would welcome an opportunity to educate your group.

I'm curious to know how you would respond to the notion that you are ill-informed and that you have referred -- you have refused the offer to educate you.

Out declarations are coming from them.

It is their statistics that we are using.

We would like to get that information from them.

I have asked them for half a dozen times for that information.

They have refused to disclose that.

I think that is the most important question that a potential entrepreneur can ask this company before taking advantage of the business opportunity.

They do not disclose this information and that is a very revealing.

You are not.

You are not.

You are not.

Sorry.

You are not saying that herbalife is a pyramid screen -- pyramid scheme.

Our main issue is that latinos are being recruited into a fraudulent business opportunity that does not really exist in a vast majority of them lose money and, not only that, the money that they lose funds herbalife's offense.

-- profits.

Latinos in the united states, most of them are undocumented and are of low income.

They are providing a revenue stream for this company because their purchases are the majority of the sales that this company is making.

The company sells -- tells us that 73% of the distributors do not want to sell, they are consumers.

We find that fraudulent.

On the second question, with three times, we have gone to the conferences and met with them.

What did you think of them?

We're not interested in this company when i first met with them.

I realized that these people are not telling the truth and that's they are trying -- and they are trying to create a opportunity for latinos.

Most involve the company will lose money.

So many of them are hispanic.

I thought it was dishonest and they kept -- i kept asking how many people are in the downline.

They told me three levels.

According to the literature, you can have unlimited levels in your downline.

Who did you meet that you thought was a liar question mark fleming -- liar?

I met fleming.

I met with other officials.

I met the pr person.

I do not have all the names off of the top of my head.

I have met quite a few.

They have said that have not gone to meet with them.

I flew to l.a. to meet with them.

I was supposed to do their dog and pony show and all the different things that they wanted me to see.

See the nutrition and -- before we are out of time, what are you asking the government to do?

We have not talked about that.

We are asking the government to execute the law.

The federal trade commission operates off of section five of the federal trade commission act and it says that if you have a company that is promoting a fraudulent business opportunity and omitting facts, like what is the average compensation for a distributor, if that is the case and, that results in a material action by consumers or distributors, they have to enforce the law.

That is exactly what we heard from the ftc yesterday.

If you do that, you bend the truth and you trick people into a business opportunity that does not exist, a law must be enforced.

We are asking them to do what the mandate is.

Enforce the law and show that when somebody promotes a business opportunity, it is a real one and they are not being defrauded.

We have to leave it there.

They do so much of the -- thank

This text has been automatically generated. It may not be 100% accurate.

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