Tomahawk, WI 07/24/2014 (Basicsmedia) – In a presentation to investors, hedge fund manager and the founder and CEO of Pershing Square Capital Management LP, Bill Ackman, speaks on Herbalife Ltd. (NYSE:HLF) and how the company is guilty of fraud.

Ackman has been going against Herbalife Ltd. (NYSE:HLF) since 2012 and has been arguing that the company is a type of ‘pyramid scheme.’ According to Ackman, the company makes most of its money by hiring new sales people rather than by selling its weight-loss products and other supplements.

Ackman also claims to have audio and video proof apart from some documents given to him by employees of Herbalife Ltd. (NYSE:HLF).

As part of his presentation Ackman said “But I would be concerned if I am a member of this board (board of Herbalife), as after investigation everything we are just identified. And if it’s a slightest bit true, so you know, lot of legal work to do here, and I hope the board has got independent representation.”

Adding to his comments, Ackman said, “40 to 50% of the revenue of the company comes from a business method called a ‘Nutrition Club,’ which itself is entirely fraudulent. They have got fake customers. These are not customers these are people who are buying into a mini pyramid scheme. I am not circumstantial about it; we have facts.”

Ackman also said that investor Carl Icahn is a ‘back of the envelope investor’ and has made $22 billion o the back of an envelope and that the nutrition club is designed to be a secretive thing.

Ackman, who is completely against Herbalife Ltd. (NYSE:HLF), has placed a $1 billion bet on the collapse of the company. He has also claimed to have spent $50 million on investigations over Herbalife.

Meanwhile, Herbalife Ltd. (NYSE:HLF) denied all the charges made by Ackman and said “Today is evidence that Bill Ackman will not succeed.”

Even tough the company’s shares had taken a beating on 21st June due to the announcement if Ackman’s presentation, it recovered 25% on Tuesday after investors found that the revelations by Ackman had not knocked out Herbalife as claimed by Ackman before his presentation.

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