Why Are Short Sellers On Wall Street Targeting Public Direct Selling aka MLM Companies Calling Them

MLM Attorney Kevin Thompson

Since may first when David Einhorn a famous Wall Street short seller asked elementary questions about the Herbalife’s reporting of sales volume. Specifically the separation of retail sales from sales made to consultants, it has caught the eye of other Wall Street short sellers who really don;t know anything about the direct sales business channel or the network marketing community.

This has been painfully obvious by the articles they have written and the “expert sources” they quote. To date, none of the well known watchdogs, advocates, attorneys or consultants have been contacted by these short sellers for any expert advice. You may ask how I know this to be true? None of the articles quote Len Clements, Rod Cook, Dr. Keith Laggos, Kevin Thompson, Kevin Grimes, Spenser Reese, Steve Richards, D. Jack Smith, Kevin Thompson, Jeff Babener, Gerry nehra, Rick Waak, Jerry Kelly, Joe MarianoCharles Orr, Garrett McGrath or Richard Brooke, Doris Wood. And in talking to several of these folks, none of them have heard from any of the short sellers or their organizations.

So what is it, that causes a person or organization to publicly call into question a whole industry without fully understanding the long term ramification of their actions… It is called “The Grey Area of Direct Selling aka Network Marketing!

This is not the first time Short Sellers have taken a swipe at Direct Selling companies. In 2007 we saw several of the same companies Herbalife and UNSANA hit with short selling by one of the biggest financial scammers and ponzi scheme experts in modern history Barry Minkow! Sadly, he claimed he had found “Jailhouse Religion” and was out to save the world. I am pretty sure this is why great financal experts like Neil Cavuto fell for his crap.

Here are a few of the article written about what happened.

MLM Watchdog:

MLM Watchdog:

Deep Capture:

Fortune: Barry Minkow: All-American con man

Market Wave – Len Clements – Usana Settles Law Suit with Barry Minkow Team Minkow Losing Streak Continues

Market Wave – Len Clements _ Minkow Pleads Guilty to Conspiracy/Fraud Robert FitzPatrick to be Tried for Libel

Now you may be asking “What does this ponzi scam kind have to do with the current short selling issues facing Herbalife and UNSANA?” The same issues used by Minkow are what the short sellers today are bringing up. And it all has to do with a topic MLM Attorney Kevin Thompson has been talking about for the last few months… Customer sales, what are they, how many are there, and do the companies really enforce and keep track of them?

MLM Attorney Kevin Thompson

Thompson has written several articles on the subject shot the following video.

Kevin Thompson – Herbalife, USANA and Big Shorts

“I’ve long been writing about the importance for strong customer numbers. I’ve gone so far to write that we, as an industry, are deluding ourselves by pretending there’s not a problem. Throughout my career in the industry, I failed to appreciate arguably the most powerful lever that will eventually lead to positive change: the market. While most companies in the space are not publicly traded, the ones that are will be pressured to provide some strong customer metrics in order to build investor confidence. Investors are getting educated. Instead of re-hashing legal principles about the legitimacy of paying commissions on downline consumption, we need to be having a more serious conversation about ways to improve the space to improve confidence in the overall marketplace.” Read More… http://themlmattorney.com/herbalife-usana-and-big-shorts/

Kevin Thompson – Self Deception: a cancer holding the MLM industry back

If we do not want to see this type of situation in the future, then we need to wake up and start collaborating together on the issue of defining the gray!

Pyramid Schemes: Saving the network marketing industry by defining the gray