If he cared only for himself, he’d keep the secret of turning a pyramid scheme into a legitimate business to himself. But the Pershing Square chief is back in the black vis-à-vis HLF, and feeling generous. So, here’s his recipe for success, as laid out in a kindly letter to Herbalife’s new compliance chief:
Step One: Throw everything out.
Step Two: Start over and build something that doesn’t violate every law on the books and every clause of the constitution and every tenet of human decency.
"Only a radical redesign of Herbalife's compensation system could remedy serious and ongoing violations of consumer protection laws and securities laws," Klafter wrote in the 19-page letter sent on Thursday and seen by Reuters….
"Your job will be an enormous undertaking, especially given the lax attitude toward compliance that has existed at Herbalife in the past," the letter said, adding "You may find yourself at the fulcrum of choosing between protecting consumers or protecting the company. Based upon our research, we do not believe you can do both."