SEC Investigating Herbalife
A company planning to bring nearly 500 jobs to Winston-Salem is being investigated by the federal government.
Just last month Herbalife announced plans to develop an east coast distribution center and create more than 490 new full-time jobs. Now the Securities and Exchange Commission is looking into the nutrition and skin care company, after claims by some investors that Herbalife is a well organized pyramid scheme. Mayor Allen Joines said the State Attorney General already looked into these allegations and found nothing illegal.
Allen Joines: "You're concerned about a company that you're doing a project with, but, our primary concern is the amount of investment and the jobs that they create here."
The company says its operation is legitimate. Herbalife was ruled to have been running an illegal pyramid scheme by a court in Belgium. The company is appealing that decision. If Herbalife meets certain benchmarks it will receive incentives totaling more than $15 million from the city, Forsyth County and state.