Forsage and Herbalife—How Multi-Level Marketing, Pyramid Schemes, and Ponzi Schemes Differ

Forsage and Herbalife—How Multi-Level Marketing, Pyramid Schemes, and Ponzi Schemes Differ

Why it is challenging to distinguish a legitimate multi-level marketing company from a pyramid scheme as hedge fund billionaire Bill Ackman found out in his losing campaign against Herbalife. How Forsage has taken pyramid and Ponzi schemes to a whole new level, and why the regulators can't shut it down.

Topics covered include:

  • What are multi-level marketing companies and how most MLM distributors are unsuccessful
  • What is the difference between a pyramid scheme and a Ponzi scheme and what are some examples
  • How hedge fund Pershing Square Capital Management took on Herbalife and despite FTC and SEC actions, Herbalife continues to thrive.
  • Why Forsage, a pyramid and Ponzi scheme on the blockchain, continues, despite SEC regulatory actions
  • Why Bitcoin isn't a Ponzi scheme


For more information on this episode click here.

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Show Notes

Herbalife Settlement With F.T.C. Ends Billionaires’ Battle by Matthew Goldstein and Alexandra Stevenson—The New York Times

Multi-Level Marketing Businesses and Pyramid Schemes—Federal Trade Commission

Herbalife International Settlement Complaint

Herbalife Settles With S.E.C., but Too Late for Hedge Fund Investor by Matthew Goldstein—The New York Times

Consistency is Key! Make Money Podcasting by Elsie Escobar—Libsyn

November Stats From Rob Walch—Podcast Business Journal

Federal Trade Commission Returns More Than $149 Million To Consumers Harmed by AdvoCare Pyramid Scheme—Federal Trade Commission

Federal Trade Commission Returns More Than $23 Million To Consumers Deceived by Online Business Coaching Scheme MOBE—Federal Trade Commission

FTC Shuts Down Credit Repair Pyramid Scheme Financial Education Services, Which Bilked More Than $213 Million from Consumers—Federal Trade Commission

Investor Alert: Ponzi Schemes Using Virtual Currencies—U.S. Securities and Exchange Commission

What is Forsage?—Forsage Support


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