The initial autopsy, conducted on May 23, was inconclusive and required additional tests. [14], In September 1987, Hughes married Suzan Schroder, a former actress, court reporter and Miss Petite U.S.A.[14] In December 1991, Hughes' and his wife, Suzan Hughes, had his sole son, Alexander Reynolds "Alex" Hughes. [38], In China, the company's manufacturing sites are located in Suzhou and Nanjing. Let's start from the beginning. We are being vilified because we wont give them all of our business, Sandler said. The cause of death was a bad mixture of alcohol and anti-depressants. It has since become one of the world's largest distributors of Herbalife products through multi-level marketing, with sales of about $3.5 billion in 2007 and 2.1 million Independent Distributors. Marconi, 66, also has been a subject of controversy. As of 2015, 58 percent of the company's nutrition products were manufactured at Herbalife-owned facilities. She tried and failed once again to rouse him at 1 a.m., according to the autopsy. Hughes' mother died of an accidental overdose of prescription diet pills when he was 18. In an interview, Marconi said he has always looked out for Hughes interest, either helping or attempting to bail Hughes out of difficult situations. Sen. William V. Roth Jr. In 2013, two rival billionaires ended up taking the opposite side of Ackman's billion dollar bet. [39][40]:16 The company's production process is based on a 'seed to feed' strategy, which the company initiated in the 2010s that allows it to trace where the ingredients in its nutritional products originated. Hughes was born in La Mirada, California on January 1, 1956, the son of Stuard Hartman and Jo Ann Hughes. For the latest 12-month requalification period ending January 2019, approximately 67.9 percent of the eligible sales leaders requalified. Pair subsequently pleaded no contest to the 1998 theft of about $400 in merchandise. [7], In March 1985, the California attorney general and the state Department of Health Services charged he and Herbalife with making "untrue or misleading" product claimsprimarily involving the caffeine content of some Herbalife productsand operating an "endless chain marketing scheme. Hughes founded Herbalife International, a weight-loss and nutritional products company, in Beverly Hills in 1980. Hughes liked the sales business and soon jumped to Best Line Products, a similar firm that quickly went out of business. Ive lost 16 pounds in the last few years., During the hearing, Hughes acknowledged that his own formal education stopped at the 9th grade. As we mentioned previously, Mark Hughes had somewhat of a penchant for beauty queens. Subsequently, Bill Ackman lost $400-$500 million on his bet. He had already covered the purchase of a mansion for Suzan and Alex in Beverly Hills ,and would continue to pay for Alex's private schools and vacations. ), the subcommittee chairman, said that Herbalife and. Wife #4, Darcy LaPiere (the Hawaiian Tropic model), had previously been married to action star Jean-Claude Van Damme. "Herbalife Nutrition Recognized as One of Forbes Magazine's Best Employers", "Mark R. Hughes, 44; Founded Nutrition Supplement Concern", "Herbalife Nutrition Announces Leadership Change", "Herbalife settles pyramid scheme case with regulator, in blow to Pershing's Ackman", "Herbalife Will Restructure Its Multi-level Marketing Operations and Pay $200 Million For Consumer Redress to Settle FTC Charges", "It's no longer business as usual at Herbalife: An inside look at the $200 million FTC settlement", "After Big Bet, Hedge Fund Pulls the Levers of Power", "FDA Organization Letter to Herbalife Ltd. Hughes reached settlements with the regulatory agencies in 1986. You may cancel your subscription at anytime by calling [128] They sponsored FC Barcelona and Lionel Messi between 2010 and 2013. [22], Mark and Suzan established the Herbalife Family Foundation (HFF) in 1994, a non-profit organization dedicated to improving vulnerable children's lives through helping charity organizations meet the nutritional needs of children at risk, and providing funds to organizations that assist victims of natural disasters. A study of the cases funded by the Israeli Ministry of Health concluded that there was a causative relationship. Rosen did not respond to an interview request. Existing Subscriber? Since Hughes death at age 44, lawsuits between the executives within his closest circle expose a tale of revenge, an executive with a shoplifting arrest and sexual harassment allegations. "[2], Hughes was 19 years old and still working for CEDU when his mother died in her apartment of an accidental drug overdose on April 27, 1975. In February 1980, Mark R. Hughes began selling the original Herbalife weight management product from the trunk of his car. [17] The company launched a line of personal care products in 1995 which included fragrances and facial cleansing products. to determine the cause of death. Inc. founder and Chief Executive Mark Hughes last Campbells Soup Sales Were Declining. He founded the company 20 years ago. In February 1980, Hughes founded Herbalife International. Not much is known about Mark's early life other than his family grew up in humble circumstances and that his mother, Jo Ann Hughes, died when he was 18. [35], Herbalife Nutrition's products include weight-loss and protein shakes,[36] as well as protein bars, teas, aloes, vitamins, and sports hydration, energy, and personal care products. At Herbalife Nutrition Foundation, we strive to grow our impact and continue carrying out Marks vision. [75] However, neither a 2005 American Association for the Study of the Liver position paper[76] on the management of acute liver failure nor a 2013 review in the New England Journal of Medicine[77] lists "overzealous dieting" among the recognized causes of acute liver failure. Jennifer Friedlin May 22, 2000 12:22 PM EDT Updated from 10:57 a.m. EDT Herbalife International. When asked during the hearing how he could be qualified to challenge leading medical experts, Hughes snapped: I defy anybody to be able to produce results as this company has.. So now you know the history of Mark Hughes and Herbalife. In addition to selling the product, sales-people were encouraged to sign up their friends, family and neighbors to become sales-people themselves. Can the second 'Survivor' live up to the first? Herbalife paid Rosen $3.3 million last year. [45] In the U.S., the company has manufacturing facilities in Lake Forest, California[46] and Winston-Salem, North Carolina. But Mark's Herbalife stock wasn't his only source of wealth. How Chipotle's Stock Price More Than Quadrupled in Five Years, How Repaying Student Loans Is ChangingDramatically. And speaking of impressing Donald Trump, during his lifetime Mark married four different beauty queens. [41] Since 2013, the company has operated a botanical extraction facility in Changsha, Hunan Province, China. Previously, Pair was Herbalife exec VP, chief operating officer and secretary. https://www.nytimes.com/2000/08/12/business/binge-led-to-death-of-herbalife-founder.html. When asked during the hearing how he could be qualified to challenge leading medical experts, Hughes responded: "I defy anybody to be able to produce results as this company has. However, his attorney, Hillel Chodos, said the lawsuit has no merit.. On this Wikipedia the language links are at the top of the page across from the article title. Herbalife Faces Struggle After Death of Founder Mark Hughes Herbalife Founder on Drinking Binge Before Death Make money now, ask me how! Hughes relatives discovered his body, and they notified authorities, Thomas said. Mark died suddenly in 2000, leaving behind a giant financial mess that took over a decade for his heirs to resolve. [26] In the mid 2000s, Herbalife upgraded its manufacturing facilities, moving manufacturing to around 60% in-house, and changed how the company sold its products to distributors. The coroner found no indication of foul play or intentional overdose, he said. But in the months since his death the three executives have broken ranks, lacking the common goal of supporting Hughes, whose marketing savvy netted them millions of dollars in salaries, stock and profits. According to the coroner's report, Mark Hughes had died after a four-day drinking binge. When the company went public on the NASDAQ in 1996, Mark's 26% stake was worth $250 million. [94][95] Ackman alleged after a year-long investigation that the majority of distributors lose money, that the chance of making the testimonial-implied headline income is approximately one in five thousand, and that the company materially overstates its distributors' retail sales and understates their recruiting rewards. CNN News, June 17, 2000. Marconi has fought with Pair before, at one point telling Hughes to fire Pair during a company downturn in the mid-1980s. They are not leaning toward foul play at all.. You may change your billing preferences at any time in the Customer Center or call Alex was only 8 in 2000 when his father, Herbalife founder Mark Hughes, died and left a $400 million trust for his only son to inherit at 35. Doxepin is sometimes prescribed for anxiety-induced sleeplessness, and it is thought Hughes was using it for that purpose, Carrier said. Mark's sole heir was his son Alexander Hughes, who was eight years old at the time. LOS ANGELES -- The death of Herbalife International Inc. founder and Chief Executive Mark Hughes last month was an accident, said the Los Angeles County Coroner's office. Mark Reynolds Hughes was born on January 1st, 1956 in La Mirada, California. That's Not A Typo. Hughes, enmeshed recently in a struggle for ownership of his weight-loss and nutritional products company, was reported to have died at 11:02 a.m. at his $25-million Malibu estate at 33064 Pacific Coast Highway. The PBS documentary Steve Jobs: One Last Thing is a tribute to the visionary entrepreneur who was the co-founder and CEO of Apple. He structured his company using a direct-selling, multi-level marketing model. It has since become one of the world's largest distributors of Herbalife products through multi-level marketing, with sales of about $3.5billion in 2007 and 2.1 million Independent Distributors. Revenues were generated both by outside sales and through the companys network of 750,000 independent distributors, who bought Herbalife products in a multilevel pyramid, then resold them to individual consumers. Hughes became the school's best salesman. EIN: 22-2306795. The judge ruled in favor of Alex and removed the trustees from the estate forever. They were accused of bribing Chinese officials in order to procure sales permits and to influence an investigation into Herbalife. By 1982, just two years after launching the business from his trunk, Herbalife was generating over $2 million in annual revenues. According to a court-ordered audit, in 2005, the value of 13 year old Alex Hughes' trust fund had grown to $400 million. Marconi feared that if news of Hughes addiction leaked out, it would damage the pitchmans youthful and healthy image and hurt the company. Hughes often stated that the genesis of his product and program stemmed from the weight loss concerns of his mother Joanne whose premature death he attributed to an eating disorder and an unhealthy approach to weight loss. Unfortunately for Alex, he wouldn'tbe able to touch the money until he turned 35, in the year 2027. [132], In 2021, the company announced a partnership with the LA Galaxy on an augmented reality fan experience. Mark R. Hughes Herbalife Nutrition/Founders Herbalife . A third-generation Angeleno, Jerry Hirsch covered the automotive industry for the Los Angeles Times. [10][2], In February 1980, aged 24, Hughes founded Los Angeles-based Herbalife International. ", "Investors are reportedly pulling out of Bill Ackman's hedge fund at a 'rapid pace', "FTC Opens Investigation into Herbalife Shares Plunge", "FTC Launches Herbalife Inquiry, Shares Fall", "Herbalife Soars After Saying It's Close to FTC Resolution", "Herbalife Settlement With F.T.C. Listed A Year Ago For $1 BILLION "The Mountain Of Beverly Hills" Just Sold For $100,000. He bought two adjacent houses for $1 million each, and then had them bulldozed to expand his backyard. LOS ANGELES, May 22 -- The death of Mark R. Hughes, the 44-year-old founder and president of the Herbalife International, over the weekend was apparently the result of natural causes. [16], In February 1999, Hughes married Darcy LaPier, an American actress and model. "I got in trouble with the law. month was an accident, said the Los Angeles County Coroner's office. He has a masters degree from Northwestern Universitys Medill School of Journalism. [135][136], In April 2016, a documentary directed by Ted Braun, titled Betting on Zero, premiered at the Tribeca Film Festival. The coroner said Mr. Hughes died from a combination of alcohol and medication. Registered 501(c)(3). [60] The company was accused of selling products containing toxic ingredients such as quaqua, comfrey, and kraska. Previously, Pair was Herbalife exec VP, chief operating officer and secretary. "[7], Prompted by complaints alleging that Herbalife product users had suffered illness and death, a U.S. Senate subcommittee called Hughes before a hearing in May. Why 58,000 square feet? [101][102], In November 2017, Ackman closed out his short position after Herbalife shares increased by 51 percent over the year, and replaced it with a less aggressive put option. [2] In the ninth grade Hughes dropped out of school and began using drugs himself. In 1994, Mark created Herbalife Nutrition Foundation (HNF), with the goal of improving childrens lives by helping organizations provide healthy nutrition to vulnerable children. Pair took control of the company soon after Hughes death and moved to shift business from Marconis Global Health to other suppliers. Attacking three nutrition and weight-control authorities who questioned the safety of his products, Hughes asked senators: If theyre such experts, then why are they fat? [18][19] In 2006, the Los Angeles Superior Court ruled to remove Reynolds from supervising a $35 million custodianship after finding that he violated multiple probate laws by ceding control to Klein and commingling Alex's personal assets with partnership accounts. The chief executive of Herbalife International Inc., Mark Hughes, died after a four-day drinking binge, according to a full report by the Los Angeles coroner. The tangled web of litigation can cause some pretty funny alliances at times. Thus, causality levels were much lower than hitherto proposed. Herbalife also instituted a fairly innovative program of customer-service chat rooms, post-sales service and sales follow-up. You know, in case your guest has a guest. [13] The company settled the suit for $850,000 without admitting wrongdoing. Among the fallout has been the near financial ruin of Herbalifes top supplier, which has endangered the jobs of 1,000 workers in Orange County. (R-Del. [129] Herbalife has also sponsored the basketball club Herbalife Gran Canaria since 2012. Hughes's will stipulated that, until Alex turns 35, the bulk of his inheritance would be held in a trust managed by Jack Reynolds (Alex's paternal grandfather), attorney Conrad Klein, and Herbalife executive Christopher Pair. Oh, and the guest house has its own guest house. [5][115][116][117] Partial refund checks were mailed to roughly 350,000 Herbalife distributors in January 2017. In May 2002, Herbalife founder, chairman, and chief executive officer Mark Reynold Hughes, was found dead at his $27 million oceanfront mansion in Malibu, California. Last fall, dissatisfied with the price Herbalife shares were fetching on the stock market, Hughes announced he would by all the companys outstanding shares, then selling for $12 or lower, for $17 a share.