ALAN LORENZ

Dates of Herbalife Distributorship: 1984 – present
Status in Herbalife: Chairman’s Club
Business Methods: Training Videos and Presentations

All statements in the report are made pursuant to Pershing Square’s disclaimer available at dev-facts-about-herbalife.pantheonsite.io.

Background on Herbalife-Related Businesses

• Alan Lorenz was the registrant of wfh-financial-freedom.com, and wfh-lorenz.com, landing pages for the “business system” Work From Home Inc. (“WFH”) owned and operated by Founder’s Circle members, John and Susan Peterson.
• Alan Lorenz, along with his wife Carol, appear to have run a version of Petersons’ WFH program that focused on the European market

Lorenz Exhibit 1:

Primary Source Data on Business Practices

Training Videos and Presentations

• Lorenz appeared in an early Work From Home “decision pack” video produced by Founder’s Circle members John and Susan Peterson.

• In the video, Lorenz starts by citing “worldwide trends” as the reason that he and The Herrons (Bill and Clem) and Petersons formed the Work From Home system. “When the three of us got together we saw that there was worldwide economic problems both in Europe and here in America and uh, we knew that this was the business because not only was it a business that was recession-proof, but our people did really well in times of recession.” (7:46).

• As in other videos, Lorenz emphasized the promotions available to top distributors and the speed at which such promotions became available to new distributors: “One of the places that we make those friendships is on our worldwide vacations, which you’ll be able to attend with us within 6 months of you getting involved with us.” (8:21)

• Finally, Lorenz introduced John and Susan Peterson by saying, “You’re now going to hear from John and Susan. And you need to listen to what they’re going to say because they’re the absolute experts in this system that you’re going to venture into, which is absolutely idiot-proof. That’s why I can do it; that’s why a lawyer can do it. And if I can do it, . . . anybody can do it.” (8:44)

In truth, Alan Lorenz is a former divorce lawyer who, as far as we could discover, has not held a certificate to practice law since 1990.

• Alan Lorenz and his wife Carol appeared in direct-mail brochures as part of the Work From Home system that featured misleading income claims

• In a video posted on YouTube, Lorenz, speaking from a beach in the Bahamas, emphasized the importance of qualifying as a Supervisor, recruiting new distributors into the Herbalife scheme, and teaching downline distributors to recruit still more distributors into the scheme.

• Lorenz encouraged viewers to qualify as a Supervisor as quickly as possible: “If you’re watching in the month of March, get to supervisor by the end of the month. Get your people to supervisor. Something very special could be happening in April.” (2:50) The pressure to “qualify for everything”—which is Lorenz’s mantra—extended to Herbalife-sponsored vacations. As Lorenz explained, “10,000 [Volume Points] in one month puts you on the cruise, and you’ve gotta be on the cruise with us next year. . .  Why shouldn’t you be one of those people who’s got a suite in the 5 star, 7 star?” (4:19)
• Lorenz has also made many live training presentations to groups of Herbalife distributors around the world.

• At one training event, Lorenz encourages distributors to “package” their stories in order to recruit more people into Herbalife: “Write this down: packaging your story. . . . Your story is—write it down—the truth packaged in a powerful way so as to affect people.” (2:48)
• Later in the video, Lorenz illustrated how to package the story of a 15-year nursing veteran. “I earn between fifteen hundred and with overtime, two thousand a month. It took me fifteen years to get there, and for that I have to work . . . forty hours a week or more. . . .   I got started in Herbalife six months ago and part time, how much did you earn last month?” When the nurse said that she had earned approximately £3,400 [approximately $5,263], Lorenz said, “That’s the deal.” (4:20)

• • In another presentation; this time in Brazil, in 2007, Lorenz stated: “I found the magic company. I found the magic tablets. I found the magic powder. And I found the magic of Mark Hughes who founded our company.” (1:47)
  • He continued, “I found the way to make a fortune by helping other people.” (3:09) “I put on this button. And I found a few people who were even more broke than me.” (3:50) Now, Lorenz said, he and his wife have “houses around the world.” (4:36)
  • Lorenz explained that all his distributors could attain this level of wealth: “As my friend Geri Cvitanovich, the queen of Herbalife, as she says, we’re gonna train you to become millionaires.” (8:05) Lorenz conceded, however, that he had “won the jackpot ‘cuz I got Pedro [Cardoso] and Pedro found fantastic people.” (8:21)
• Lorenz has promoted the Herbalife business opportunity in a video for a promotional “personal development” program called ‘Best Year Yet’

• In the video, Lorenz promotes the Herbalife business opportunity by saying that attending an Herbalife meeting “was the thing that solved certainly all the financial problems and all my career problems.” (1:50)
• This video is featured on the website New Level Results Ltd., which “is the sole licensor for ‘Best Year Yet’ programmes in the UK and Ireland.” Lorenz Exhibit 2.
  • The home page bears the logo “Herbalife Independent Distributor.”
  • New Level Results targets Herbalife distributors by offering a “Special Offer” of $99.95 “For Herbalife Distributors only” to purchase the Best Year Yet package. Lorenz Exhibit 3.
  • The website contains the following Herbalife-specific statements:

• “This year I want to achieve real RESULTS and positive outcomes and make 2015 my best year yet in Herbalife.”

• “I’m looking to follow Alan’s advice and set up my own Herbalife Best Year Yet Plan.”

• Lorenz has also appeared in a video promoting the introduction of Herbalife in Ghana, originally posted December 11, 2012 (source: https://www.youtube.com/watch?v=CCKk7BXuI74)

Links to Other Senior Distributors

• Lorenz (left) with Chairman’s Club member Stephan Gratziani at the 2013 Herbalife Extravaganza in Cologne, Germany. Gratziani is a member of Lorenz’ downline. Lorenz Exhibit 4. In a taped Herbalife meeting from 2005, Gratziani speaks candidly with a group of mid-level distributors about the reluctance to recruit friends and family members into a business that is “an eventual deception.” See: http://factsaboutherbalife.comherbalife-unmasked/
• In May 2010, Lorenz and Pedro Cardoso (a member of Herbalife’s Board of Directors and Chairman’s Club) (“Cardoso”) hosted a conference call to encourage distributors in Europe, the Middle East, and Africa (“EMEA”) to recruit more distributors in the run-up to that year’s Herbalife Extravaganza.
  • Herbalife Senior Vice President Jonathan Liss introduced Lorenz as “Mr. Promotion himself,” and promised that listeners would “learn everything you need to know to have an unbelievable May.” (0:04)
  • Later in the call, Lorenz stressed that “you want to be at the party,” and told listeners that “everybody can do [the] 10,000 [Volume Points] in one month” required to get there. (9:00) Cardoso added that qualifying for events is important because it serves to encourage a distributor’s downline to work for those promotions as well—generating revenues for Herbalife and commissions, royalties and bonuses for members of their upline. (9:08-10:50)
  • Lorenz and Cardoso then introduced a new program called “Taste the Future,” which is designed to encourage recruitment. Lorenz referred to recruiting as “the lifeblood of the business.”
    • Lorenz described “Taste the Future” as “a recruiting and volume promotion. It’s about recruiting some people, which is the lifeblood of the business, and getting them to do any small amount of volume so it shows that they’re active, and it’s in three parts. Why don’t you tell the people why it’s so exciting, what it did, and what it’s gonna do for us.” (13:27)
    • Bemoaning that “sometimes people don’t recruit just because they don’t have that focus,” Cardoso described a series of incentives aimed at encouraging distributors to recruit. (13:52) He explained that distributors who earned a minimum of 2,500 Volume Points for two months in a row and recruited at least five new distributors would receive a “Level 1 recognition pack” of items to use at the upcoming Herbalife Extravaganza. (15:00) Distributors who recruited at least ten new distributors would receive Level 1 and Level 2 packs. (16:00) Distributors who recruited at least 10 new distributors and earned 5,000 Volume Points for two months in a row would receive the Level 1 and 2 packs and a picture with Louis Ignarro (a member of Herbalife’s Nutrition Advisory Board) at the Herbalife Extravaganza. (16:20)
  • Lorenz closed the call with “the last thing that Mark [Hughes] said to me. One of the things he always said that I never do a training without saying . . . . He said and says it over and over again, ‘If you go to Extravaganza, it’ll put you six to nine months ahead in the business, and if you take other people, you’re going to get rich.’” (18:52)

• Lorenz Exhibit 5:

   

• Lorenz also counts Chairman’s Club members Queenie Leung (Hong Kong / China)  Video Counting His Downline Recruits Pedro Cardoso (Brazil), Martin and Karyn Farmer Lorenz Exhibit 6 and Natalia Ferreira Lorenz Exhibit 7 among his downline recruits.

• Lorenz (middle) with Chairman’s Club members David Bevan (left) and Jane Clark (right). A profile of David Bevan and Jane Clark is available at https://factsaboutherbalife.com/the-facts/the-perpetrators/david-bevan-jane-clark/.

• Lorenz (left) with Chairman’s Club member and Herbalife Director John Tartol (right). A profile of John Tartol is available at https://factsaboutherbalife.com/the-facts/the-perpetrators/john-tartol/.
• Alan and Carol Lorenz are part of John Tartol’s downline.

• Lorenz (left) with Chairman’s Club members Dan Waldron (middle) and Martin Ernst (right). A profile of Dan Waldron is available at https://factsaboutherbalife.com/the-facts/the-perpetrators/dan-waldron/.

• Lorenz (left) with President’s Team members Craig and Caroline Tsutakawa (left and middle) and their Mark Hughes Bonus check for 2007.

• In this photo from a Herbalife event in France in 1992 , Lorenz has his arm around Israeli distributor Tzachi Gozali (left), who was suspended in 2013 amidst accusations of cult-like behavior and sexual abuse in his organization. (http://nypost.com/2013/05/25/herbalife-suspends-cult-distributor/) 

Links to Herbalife Corporate Leadership

• Lorenz (middle) with Herbalife CEO Michael O. Johnson (right) and EVP of Worldwide Sales Rob Levy (left) at the Herbalife Honors in 2014.

• Herbalife’s website features Alan and Carol Lorenz, along with Geri Cvitanovich, as the first distributors to reach the Chairman’s Club, which they accomplished in 1993. Lorenz Exhibit 8.

• Lorenz regularly appears at Herbalife-sponsored events promoting Herbalife products and the Herbalife business opportunity and is an active member on the training circuit.
  • Recently, Lorenz was featured as a special guest speaker at the 2015 Herbalife Spectaculars in Cambodia, Vietnam, Hong Kong, and Macau. 
  • Lorenz hosted “a special night of opportunity in Venice” at the Herbalife Opportunity Meeting in Venice, Italy on November 30, 2013.
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• Lorenz has been featured in Herbalife Today, a magazine published by Herbalife.
  • In reporting his appearance at the 2003 Herbalife Extravaganza, Volume 100 of Herbalife Today described Lorenz as one of the “legends in the business.”Lorenz Exhibit 12.
  • In Volume 121 of Herbalife Today, Carol Lorenz is quoted in conjunction with a story about the formation of something called the European 20K Group. This group was established to be a “driving force to help the Herbalife business and in order to drive the market even further…” Lorenz Exhibit 13.
  • Alan and Carol Lorenz have been repeatedly awarded the discretionary Mark Hughes Bonus paid by the company to top distributors at extravagant ceremonies, including as recently as 2014.