The Editor: It appears that Brent Wilkes has gotten ahead of the LULAC members and unilaterally taken a position against Herbalife and has gotten LULAC to be a part of the Coalition to Stop Herbalife. The Herbalife issue has never been taken up by the LULAC National Board.
There is said to be a directive against Herbalife by the National LULAC Executive Committee, but no one has seen it. LULAC'ers are being ordered by on high to not solicit funding from Herbalife and if offered any funding, not to take it, and if a check arrives from Herbalife to give it back, even if the check has been deposited in a LULAC bank account, as happened in the case of Texas LULAC.
There is talk on the LULAC street that if the LULAC National Assembly, the supreme authority of LULAC, tries to get a discussion and a vote of the Herbalife issue on the floor of the convention of the National Assembly in New York City, that the powers that be in LULAC will not permit the issue to go to the floor. One LULAC attorney has already concluded that it needed a 2/3'rds vote to make it to the floor. The attorney has it backwards. The National Assembly does not need 2/3'rds of anything to set policy. All of the resolutions it votes on require a simply majority vote. Once it sets policy, the Board and the Executive Committee of LULAC must adhere to that policy.
The letter below is one example of the lobbying work that William Ackman is paying for to get LULAC and other minority advocacy organizations to join him is a get make a quick profit in Wall Street scheme that involves the destruction of Herbalife.
Ackman made a one billion dollar bet on December 20, 2012 that his strategy against Herbalife would cause the Herbalife stock to plummet to zero. Ackman waited, as did the world of investors, and nothing happened. So to make things happen, Ackman invested millions of dollars in lobbyists who would lobby the congress, the federal regulators, the state attorney generals' offices and minority advocacy groups to make his goal turn into a reality. The letter from the Coalition to Stop Herbalife represents an effort paid for by William Ackman. If Ackman wins, he makes billions of dollars. If he loses, he loses one billion dollars.
William Ackman is no friend of the minority advocacy community. Today he is, because today he needs their help. In 2009, William Ackman through Pershing Square Capital Management owned 10% of Corrections Corporation of America, the owner of 67 private prisons in America with a bed capacity of 92,000 beds. CCA was the company that ran the infamous T. Don Hutto Residential Facility in Taylor, Texas that gained its notoriety for its abuse of undocumented immigrant women and children. Today, it continuous to fund lobbyist to work against immigration reform, because the passage of immigration reform will mean less immigrants to occupy CCA detention beds.
LULAC has sided with the wrong person, William Ackman, in his fight to bring down Herbalife. William Ackman's Pershing Square Foundation has no record of funding minority organizations in its four years of existence.
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