This one’s a bit of an odd story, in that for once Herbalife themselves aren’t directly involved in controversy surrounding the company.

Well, sort of.

Reports out of Hong Kong a few days ago
detail two of the company’s affiliates milking Hong Kong residents for $50 million HKD ($6.4 million USD).

How’d they pull that off?

Some 60 people said they had been duped by two women, surnamed Choi and Ng, who claimed to be presidents in the Hong Kong office of multilevel marketing company Herbalife.

Choi and Ng allegedly told the victims they could buy Herbalife products at a cheaper price from them directly on which they could make a resale profit of between 5 per cent and 10 per cent.

The victims said that initially they received the goods and made a profit, so they started to invest more money in the scheme. However, they said the two so-called presidents disappeared at the end of last month and they had been unable to find them.

I’m going to go ahead and suggest these two have long-since run off to mainland China. Good luck tracking them down there.

What irks about this story though is the timeframe in which all this went down.

One of the victims, who gave her surname as Tsang, said she had lost HK$2.6 million in the scheme. She said she had known one of the women for years and that she had approached her around two years ago to invest in the products.

Alright, so we know this all started around two years ago. So the big question then is, how much of the $6.4 million that these women collected was spent on Herbalife products.

The victims said Herbalife had claimed the two women were only ordinary members of the organisation and were not on its staff.

You’ve got two regular affiliates, who are buying products that they dump on unsuspecting members of the public… to the tune of $6.4 million.

Now obviously for the scam to work, nowhere near $6.4 million was spent on Herbalife products. But how much product would the women have had to spent to trigger an internal investigation by Herbalife?

And remember, this crap went on for at least two years!

50%? Surely $3.2 million in product purchases by two Herbalife affiliates would trigger something on the company’s end?

20%? Still $1.28 million in product purchases.

Hell, even if only 1% of the $6.4 million these two scamsters took in was spent on Herbalife products, 
that’s still $64,000.

Granted again that’s over at least two years, but at what point does Herbalife make enquiries into it’s affiliate’s purchase of products?

Do purchases of tens out thousand of dollars (at a minimum) by Herbalife affiliates raise questions? Or does Herbalife simply turn a blind-eye and quietly bank the profit on the purchases?

Herbalife said it was “shocked” and appalled” to hear about the case. A spokesman said the memberships of the two women had been terminated, though it did not specify when.

My guess would be shortly after the victims contacted authorities about having been scammed, and not a moment e

🤖 Quick Answer

What was the Hong Kong investment scam involving Herbalife affiliates?
Two women, Choi and Ng, claiming to be presidents of Herbalife's Hong Kong office, defrauded approximately 60 residents of 50 million HKD ($6.4 million USD). They promised discounted product purchases with resale profit margins of 5-10%, initially delivering goods to build credibility before escalating the scheme.

How did the fraudsters gain their victims' trust?
The scammers provided genuine products and profits during initial transactions, establishing confidence among victims. This strategy encouraged them to increase their investments significantly, creating a pattern typical of investment fraud schemes that exploit initial positive results.

What was the relationship between the perpetrators and Herbalife?
Choi and Ng were officially affiliated with Herbalife but operated independently as fraudsters. While the company itself was not

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