By Greg Morcroft - Activist hedge fund manager and outspoken critic of Herbalife LTD (NYSE:HLF) Bill Ackman said Monday that he expects authorities to arrest some people related to the company, according to an interview aired on CNBC.
"I believe the government will start arresting people,” Ackman told CNBC.
Ackman has tried to draw regulatory attention to Herbalife, which is facing an ongoing Securities and Exchange Commission inquiry.
Ackman’s chief and most serious allegation, unveiled at a December 2012 investor conference, is that Herbalife is basically an illegal pyramid scheme, victimizing the direct distributors who sell its products.
Not all high-powered investors share Ackman's view of Herbalife; fellow billionaire Carl Icahn has backed Herbalife since last year.