Herbalife has vigorously denied Ackman's arguments, and says it operates a multi-level marketing company similar to Avon, Amway and Mary Kay.
The suit alleges that RBC enabled and assisted Jones to hijack, then fraudulently transfer, withdraw and misappropriate funds of the joint account held by the former client and her deceased mother. A judge sentenced him to 11 years in jail in February Davis said it was devastating for his mother to lose 90 per cent of her life's savings, almost throwing her into "a survival mode of existence.
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The unregistered, self-styled financial planner ran a Ponzi scheme in which many of his former clients were friends or family and people he met through word-of-mouth.
Are they registered?Related Stories. Is there a credible source that can validate the investment? At the time he did not register with any securities regulator and he never would. In his twenties, he worked at Montreal Trust Company , where he was trained in handling estate planning and wills. One of the first things investors should do is check to see if the soliciting person or company is registered on a national data base, said Sylvain Theberge of Quebec's Autorite des marches financiers. By his own admission, Jones was an unregistered financial advisor and relied on these business relationships to perpetrate his fraud. The challenge with Ponzi and pyramid schemes is that fraudsters like Jones and Madoff exploited the trust they built over a long period of time with the victims. And, he actually delivered them. The activist investor claims that clubs run by distributors of Herbalife, a weight loss and nutritional supplements company, focus on recruiting instead of selling products which is by definition a pyramid scheme. Davis said it was devastating for his mother to lose 90 per cent of her life's savings, almost throwing her into "a survival mode of existence. On July 27, Jones surrendered to police. In Jones began his own investment advising business. Jones spent more than four years behind bars. The so-called fresh money schemes required Jones to leverage the participation of his professional and financial relationships. The rest will go to lawyers.
Davis said both he and his mother were surprised to learn that Mr. Beginning aroundhe started his own investment advising business,  though he did not register as a financial adviser with any securities regulator.