Today's Wall Street Journal reports that (subscription required) Herbalife (NYSE: HLF) president and COO Gregory Probert never received the MBA listed in his biography that appears in reports the company has filed with the Securities & Exchange Commission.The resumé embellishment was uncovered by Barry Minkow, a former fraudster turned fraud investigator.
In an e-mail to the Journal, Probert wrote that he almost completed an MBA at Cal State, but that "the truth is that my vanity prevailed and I did not take action" to correct Herbalife's biography "even though I was aware it was not accurate ... I suppose that some of us who have been blessed with a certain degree of good fortune are tempted to see the paths we took in romantic versus strictly factual ways. I was wrong for succumbing to my vanity and apologize for doing so."
What? He apologizes for not correcting Herbalife's biography of him? It's not like Herbalife made it up. He should be apologizing for "taking action" to lie to his employer and investors. Lying about credentials is not an error of omission. It's a deliberate error of commission, and from the email to the Journal, he doesn't appear to be taking full responsibility for that.
At 10 p.m. last night, Herbalife put out a press release announcing that "Officials at California State University, Los Angeles confirmed that Probert was enrolled in the graduate school MBA program for 12 quarters in the 1980s. The company is reviewing the matter and, upon completion of this internal investigation, will take any appropriate action."
Minkow, who is short Herbalife's stock, has accused the company of perpetrating a large fraud. This latest find would seem to raise grave questions about the integrity of at least one of the company's senior executives.











Reader Comments (Page 1 of 3)
4-25-2008 @ 12:55PM
Bill Dollar said...
Larry Ellison, the founder and CEO of Oracle once cooked his resume and claimed to have an MBA, when in fact he never finished work on a BA Degree. So yes some liars like Ellison, who is worth north of 20 billion dollars, can get away with lying on his resume, but most peole can not!
4-25-2008 @ 2:08PM
hank said...
If thats what it takes to get a job like his then I'm in! I think that employers take the degree thing too much to heart. The guy is obviously a seasoned experienced person. So what about the lie? Prove me wrong biatch! Then I'll apologize.
4-25-2008 @ 2:13PM
Billy Sea said...
Quite frankly, what does it really matter? The guy has done a good job for these people and had he completed the master's, I doubt he would have done one significant bit better.
If that's the only lie he or any of the others concocted in their business careers, I'd say it doesn't matter a hill of beans.
Go after those who have the Enron mentality instead.
4-25-2008 @ 2:14PM
Richard Goodin said...
What is the world coming to!? If you cannot lie on resumes, where can you? On dates? On software agreements? No, only when one is a sitting President it seems.
Go back to the old days, lie on resumes, but tell the truth when it really matters.
4-25-2008 @ 2:21PM
Carl Tapp said...
IN MY HUMBLE OPINION - HERBALIFE IS A FRAUD.
I INVESTED TIME AND MONEY IN WHAT THEY SAID
WAS A BUSINESS AND WAS TOLD " WE WILL HELP
YOU TO BUILD YOUR OWN BUSINESS ". THE GUYS
THAT WERE UPLINE TO MANY, MADE PROMISES
THAT WERE NOT KEPT AND I DON'T KNOW ANYONE WHO ACTUALLY EARNED A DECENT INCOME. IT IS THE SAME WITH ALMOST EVERY
MLM OR NETWORK MARKETING SCHEME. FOR ME
IT WAS JUST ONE MORE "BIG LIE" .
4-25-2008 @ 2:26PM
joel said...
who care , degree or not degree He perfom and that is the bottom line for the consumer and the customers,there are score of CEO and succesfull entrepreneur who never graduated from anything .
Degree is as good as the personnwho has it there are a lot of highly educated IDIOTS out there .
One of them seat in the White House ....prove me wrong!
4-25-2008 @ 3:03PM
joel said...
There are a lot of educated idiots out there, can they perform to their diploma? NO! We have one of them in the White House
4-25-2008 @ 3:03PM
aa said...
LOL. dam guy can build a college and then give himself a mba degree.
The problem is not the lie, but rather giving inspiration to those who are about to go to college.
4-25-2008 @ 3:03PM
mary ellen said...
as a former vocational counselor i can tell you that employers today take the "degree" much too seriously, thereby eliminating many competent hard-working potential employees. if no one could tell that this man hadn't finished his MBA, then what did it matter? for employers to require an expensive, time consuming degree without evidence that it will produce a better employee is just elitist nonsense, and promotes segregation in the general workforce.
4-25-2008 @ 4:58PM
Kent said...
When you have proven ground work like this guy and are worth millions who cares if he says he is a former Vice President of the United States ?
The company produces THEE premium vitamin supplement on the planet.
4-25-2008 @ 5:01PM
bob said...
THIS GUY COULD BE HILLARYS VICE PRES
4-25-2008 @ 3:46PM
Francis said...
This doesn't surprise me in the least. Herbalife is the biggest, fraudulent rip-off scheme on the planet. Why anybody would want to get involved with them simply astounds me.
4-25-2008 @ 5:01PM
Nancy Ellis said...
To: Mary Ellen (former Vocational Counselor),
Wow, you truly nailed it with the words "elitist nonsense." I have been battling this nonsense for years! As a very accomplished fine artist who can do almost anything with a brush or pencil, I still find it difficult to break into the art market - mainly because I don't possess the proper credentials; a BA or MA degree in ART. Galleries are 'wowed' by my work until they dig into my educational background. High School graduate simply doesn't cut it and I lose all my credibility as well as being unable to command the prices that I feel my work is worth - a great tragedy. On my regular business resume', I do list at the bottom that I 'attended' the University of ________, just so the reader will think that I had enough brains and a decent enough grades on my High School transcript to be initially accepted into the university. I also enjoy writing, but dread the idea of attempting to have any of my work published. ALL AUTHORS seemingly have a degree. Thank you for reading Mary Ellen. I could not resist sharing my feelings. Nancy~
4-25-2008 @ 5:00PM
Sam said...
I use to sell herbalife, when I got my 3 grand of items, my coach said ok Now we got to turn around an get rid of it, you would think they would say Ok now we got the find people who can use it.
4-25-2008 @ 4:09PM
geoff groedner said...
Whoever thought Herbalife had a COO. I figured they would have an MC, or a carnival barker or perhaps, a CSOSIC (Chief Snake Oil Salesman In Charge). Their best product is the one that dries up Florida swampland overnight. And right after you throw away those crutches, you'll fall flat on your ass.
4-25-2008 @ 4:59PM
Rob said...
Why waste your time writing about this nonsense when those who are truly doing this country harm are the thieves in Congress, the Federal Reserve, the banking industry, on Wall Street, and the housing industry. These scammers have and continue to cost the taxpayers hundreds of billions. Their excesses and lies may yet ruin our econcomy for years to come. Get real, and aim your lance at the real terrors of this economy, instead of the windmills.
4-25-2008 @ 11:13PM
Angela said...
BRAVO Mary Ellen, Bravo!!!!!!!!!!!!!!!!!!! :-)
4-25-2008 @ 4:59PM
Ed said...
It is elitest. guys on top want to kep it that way. You know there is little room for talent. However my son getting his MBA is working unbelievaly in addition to working very hard for his company.
4-25-2008 @ 4:59PM
mike said...
To Joel: it is OBVIOUS that you are not one of those "educated idiots". You should be embarrassed to post and display the fact that YOU are an uneducated idiot. I suspect your for the O man since the vast majority of his backers don't seem to know aqnything about him
4-25-2008 @ 5:00PM
Larry P said...
Where have I gone wrong. Most comments are saying 'It's OK, he's talented, + + +'. The fact is: He's actively dishonest. And the link to Enron, that started with dishonest people. To believe otherwise is just lazy thinking or maybe no thinking at all.!.