Bill Ackman has been paying a former Herbalife executive to the government and media information on the company’s activities, ABC news reports. So far the executive has been paid $US80,000.
The hedge fund manager has said that he will stop at nothing to see multi-level marketing firm Herbalife’s stock go to zero. In December of 2012 he gave a massive presentation about how the company defrauds investors and employees alike, but since then the trade has turned on him.
According to ABC’s report, Ackman promised the whistle blowing executive, Giovanni Bohorquez, $US3.6 million over ten years. They signed an agreement in June 2013. Two months later the New York Times ran a critical article about Herbalife using documents that the company claims were provided by Bohoquez.
“Giovanni could not afford to take the company on. We thought his story was important,” Ackman told ABC News. “Being a whistleblower is a very dangerous thing to do if you want to get a job.”