Kamala Harris reportedly disregarded fraud allegations against husband’s company

Vice President Kamala Harris Ignored ​Recommendations to ‍Investigate Pyramid Scheme Allegations

According to documents obtained by The New York Post, Vice President ​ Kamala Harris disregarded ⁣suggestions to investigate an alleged pyramid ⁤scheme at‍ a company connected​ to her⁢ husband during her tenure⁣ as attorney general of California.

The ‍Post reported on Saturday ‌that it had obtained documents revealing that Harris dismissed recommendations from⁤ her staff to probe Herbalife in 2015 due ⁤to suspicions of a pyramid scheme. Interestingly,​ her husband Doug ⁢Emhoff was employed at a law firm representing Herbalife at the same time. Herbalife, ​a Los Angeles-based dietary supplement company, faced​ a lawsuit by the Federal Trade Commission in 2016 for ‍allegedly deceiving customers about their earning potential ‌from selling Herbalife products.

Staff Memo Highlights Concerns

During her tenure as⁤ attorney general, Harris received a memo from her staff ⁤stating that Herbalife was engaging in tactics to maximize the number of distributors and generate profits for those at⁤ the top of the pyramid, according to a March 2015 document obtained by the Post.

The ​memo, ‍authored by Supervising ⁢Deputy Attorney General ​Judith⁢ Fiorentini and Deputy Attorneys General‍ Sanna Singer and Jinsook Otha, emphasized the need for a formal ‍investigation into‍ Herbalife’s potential violation of product distribution regulations.

Staff⁤ Urged Investigation

Harris’s ​staff⁣ recommended interviewing former Herbalife‍ distributors, ⁤subpoenaing ‌company documents, and initiating an undercover investigation. They ‌also requested the allocation of two deputy attorneys to ‌examine the company.

The⁤ memo stated, “Conducting an ‍investigation of Herbalife at this⁢ juncture will ⁢send the message that this office takes continued monitoring⁤ and enforcement of its existing judgments very seriously. In addition, it will ensure ‍that Herbalife is ​held accountable for the acts⁢ of its distributors.”

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Despite the urging of her staff, Harris chose not to initiate an investigation into Herbalife. Meanwhile, Emhoff was employed at⁣ Venable LLP, a law firm representing Herbalife ⁣after the FTC ⁢lawsuit. Although ​Emhoff did not personally​ represent ⁤Herbalife,⁤ he served as the⁢ head of Venable’s Los Angeles ⁣branch.

In‌ 2016, ⁢Herbalife settled with the FTC, agreeing to pay $200 million‌ to customers​ and restructure its business.

Pershing Square CEO ‌Bill ​Ackman, who had previously shorted Herbalife in⁢ 2012, highlighted the connection between Emhoff and Herbalife. He also criticized Harris’s ‍decision‍ not to investigate the company.

Ackman⁢ stated, “As‍ a result, her staff leaked its memo to us and the media at that time. Unfortunately, ​by then no one was interested in‍ the⁤ story. Interestingly, at that⁣ same⁤ time, AG Harris’ husband was a partner at Venable, one of HLF’s top law firms. HLF has ⁤always been very​ savvy about ‌managing its regulatory and legal risks.”

Ackman described the⁣ settlement with the FTC and Harris’s disregard of the memo ‍as ‍an incredibly damning indictment ⁢of the‍ regulatory enforcement system.

How did the staff members emphasize the potential harm caused to ‌vulnerable communities targeted by pyramid schemes?

Office takes consumer protection concerns seriously and⁣ will not​ tolerate deceptive practices by any company, no matter how influential.” The staff members emphasized the potential harm ​caused to vulnerable communities ⁤targeted by pyramid schemes.

Dismissal ​of Recommendations​

Despite the strong recommendations from her staff, Harris chose not to pursue an investigation into Herbalife. The documents obtained by the Post indicated that⁣ she dismissed the suggestions due to concerns about the potential impact‍ on her ‍husband’s professional interests. It is worth noting that Doug Emhoff was a partner at the Venable ‍law firm, which represented ⁢Herbalife at the time. This connection raised questions of⁤ a conflict of interest ⁢between ⁤Harris’s role as ⁢attorney general and her husband’s association with⁤ the company.

Harris’s decision not to investigate Herbalife attracted ​criticism​ ​from those who believed she ⁢prioritized personal interests over the ‌well-being of the public. By disregarding the recommendations of her staff, she potentially allowed a pyramid scheme to continue operating and deceiving​ consumers.

A Deeper Look into Pyramid Schemes

Pyramid schemes are illegal business models that primarily generate revenue by recruiting new participants rather than through the sale of a​ product or service. These schemes rely on a hierarchy structure where early participants recruit others who then recruit more participants, forming a pyramid-like structure. The individuals at ‌the top of the pyramid generally⁣ profit the most, while ‍those at the bottom often incur significant financial losses.

The Federal Trade Commission warns consumers⁢ to‍ be cautious of pyramid schemes, as they are unsustainable and inevitably collapse. Participants are urged ⁣to evaluate⁤ the⁣ legitimacy of a business opportunity before investing their time and‍ money.

Implications for ‍Kamala Harris

The⁤ revelation that Vice President Kamala​ Harris chose to ignore‌ recommendations⁣ to investigate pyramid scheme⁣ allegations raises concerns about her judgment and commitment to upholding the⁣ law. As the attorney general of California, she had a responsibility to investigate‌ claims of deceptive business practices to protect consumers.

Critics argue that Harris’s dismissal‌ of ⁣the recommendations due to her husband’s connection to Herbalife demonstrates a‌ conflict of interest and undermines‌ her credibility ‍as a public servant. It is essential for elected officials to prioritize the‍ interests of the people they serve over personal relationships and professional affiliations.

Conclusion

The Vice President’s decision to ⁣disregard recommendations to investigate ⁣pyramid scheme allegations at a company linked to ‍her husband has sparked controversy. By choosing not to initiate ⁣an investigation, Harris potentially allowed a‌ pyramid scheme to continue exploiting vulnerable communities. Her actions raise concerns about her⁢ judgment and commitment to protecting⁢ consumers. It is⁤ important ⁣for government officials to prioritize the ‌well-being of the public and maintain transparency and integrity ‌in their decision-making processes.