The Fraud Discovery Institute (FDI) has just released a report corroborated by video and audio evidence indicating that Herbalife LTD (NYSE:HLF), a multi level marketing company based in Los Angeles, California, has been operating an underground multi level marketing business in China where they are only licensed to "direct sell" products. The investigation also demonstrates that the problem of recruitment in China extends to Herbalife distributor down lines in countries outside of China which taints company earnings.