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.
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Reader Comments (Page 3 of 3)
4-25-2008 @ 6:45PM
Sylvia said...
How does that go? The C students will be managing the A students? Or some such. Guy is obviously very smart an proven his mettle. Has he stolen, defrauded or embezzeled anyone? If not, way to go on a job well done!
4-25-2008 @ 6:45PM
Bob said...
So what the Secretary of Florida's Department of Corrections has a phony masters degree and their govenor thinks it is okay.
4-25-2008 @ 6:48PM
teri said...
he only works at herbal life..lolol at least he aint lying and running our country...
4-25-2008 @ 7:04PM
Rick said...
The lie is a disease that is spread downline in that organization. Their so called premium vitamins only rank 1.0 in a nutritional supplement product rating. Premium is 5.0
4-25-2008 @ 7:10PM
dg said...
All one has to do is look at the founder (now deceased) to see how a company really operates. This founder was nothing short of a real sleaze ball!
4-25-2008 @ 7:17PM
teri said...
Because if you lie and augment yourself, you are apt to do in other aspects of life as well. Many people, like myself, prefer integrity over someone making billions. Ellison has probably screwed over other people you just dont hear about it. The truth will set you free is no lie.
4-25-2008 @ 8:43PM
Gary said...
HERBALIFE IS A SCAM.AND THEY RECRUIT THIEVES.ONE BY THE NAME OF NANCY CURRAN.SHE WILL STEAL FROM YOUR BANK ACCOUNT ONCE YOU'VE GIVEN OUT YOUR CARD #.FIRST TIME I GAVE CONSENT FOR $9.95.BUT AS SOON AS I WAS ON TO HER LITTLE SCAM IT WAS TOO LATE,THE B-OTCH GIG'D ME FOR ANOTHER $29.95 W/OUT MY CONSENT,SHE IS A SORRY PERSON,PERHAPS SHE TOOK LESSONS FROM THIS GREG GUY(ABOVE)I THINK THIER ALL THIEVES.I REALLY DON'T BELIVE THERE IS A LEGIT HOME-BASED BUSINESS OUT THERE UNLESS YOU ARE WILLING TO LIE AND CHEAT TO GET AHEAD IN LIFE.SOUNDS KINDA LIKE THE GOVERNMENT.UH OH!!WATCH OUT FOR NANCY CURRAN(REAL NAME? WHO KNOWS)"eHomeBUSINESSNetwork"BEWARE OF THIS BIG SCAM!!!!!!!!!!!
4-25-2008 @ 7:27PM
Buster said...
Whats the big deal? Bill Clinton got away with lying, so why cant everyone else?
4-25-2008 @ 7:39PM
jOHNNY said...
WHAT DO WE EXPECT FROM A SCUM DOG MLM COMPANY. THEY TRADE ON LIES, SO WHATS THE BIG DEAL? ALL MLM COMPANIES ARE WITHOUT ANY ETHICS. THREE BEARS
4-25-2008 @ 7:59PM
kelly said...
The real question is how many liars are out there who have not gotten caught. No degrees and advanced degrees are guarantees of competence - as evidenced by dear old georgie bush. Now there's a con artist for you!
4-25-2008 @ 8:15PM
doc said...
having an MBA is the same as a degree in basket weaving, these morons go to school, get this fantastic degree, and then go on to a job where they're fantastically overpaid right out of school in (pick an industry..) a business they know nothing about. dont know a thing about how the product is manufactured or how the service is actually performed.
that degree and a few years experience would be worth something, but right out of college? sorry son, the mailroom is on the 3rd floor...
4-25-2008 @ 8:28PM
phil said...
A degree in higher education...any degree from a reputable institution...is hard work. Those who lie about their degrees have avoided the work that those degrees represent. And the cost. And the learning that goes with them.
So when one lies about his degree, he is not just cheating the diligent, he is claiming knowledge he may or may not actually have. So, yes, this is serious, regardless of who is able to get away with it or how many people do have degrees that do not represent their actual level of knowledge.
Those who got a degree without the effort to acquire knowledge are just as dishonest as those who claim to have a degree when they do not.
4-25-2008 @ 9:27PM
TONY said...
Why shouldn't the president of Herbalife engage in deception. In my opinion this whole company is based on deception. They promise the world and find chumps to jump in as distributors but does anyone out there know a single person who uses Herbalife products? Know a single person who has lost weight on their magical formula? Ask around and I would wager you won't find one user in a thousand.The only people with Herbalife products are those who were snookered and now, can't unload. Sorry but when you look around and can't find a single person who uses the products, it smells like typical MLM scam to me. To answer the question, No! I was not among the victims. I just made inquiries.
4-25-2008 @ 10:42PM
goomba said...
this guy is as phoney as the products.what's the suprise??????????????????????
4-25-2008 @ 10:42PM
Ann said...
The educational system is a sham. A college education is being marketed to all kids as a "must do or suffer the consequences of a low paying job." I worked for 13 years as a journalist and editor for newspapers and did not finish my BA. I didn't need one to write well. Today's kids that graduate with a degree end up with a debt between $25,000-30,000 and the only jobs they can get are minimum wage. How sad that most people are forgetting how little difference a degree makes on whether you can do your job or not. I hope more kids today search out service industry jobs instead of wasting their time in college (unless you want to be an engineer or rocket scientist). Anyone with a brain and common sense can manage a business.
4-28-2008 @ 11:23AM
Rabin said...
The fact that Bush has one of these speaks volumes about its actual value!