AXS of evil: GIN sale pending
Remember what I've been saying all along about there being
no neat and tidy endings
Well, after months of speculation and flying rumors, it seems there's a sale pending for jailed serial scammer Kevin Trudeau's huge scam, the Global Information Network, or GIN. Yesterday GIN sent out an email (screen shot courtesy of Bernie O'Mahony at GINtruth.com):
Seems there's this group called AXS Investment Group, with Troy McClain, longtime Trudeau buddy/cheerleader and hustledork in his own right, at the helm.
I wonder what AXS stands for. Could the "A" be for Athorn, as in Blaine Athorn, an even longer-time Katie buddy and co-huckster? (Here's an April 24, 2013 Whirled post with a bit of Blaine and Katie's history.) Some speculate that Athorn is indeed involved, along with two other slimy Katie buds, Chris "Voldemort" McGarahan and Jeff Devine of the Hybrid Group
My understanding is that as a private investment group, the AXS of evil is not under any obligation to reveal the names of all of the parties involved. So at this point I have not been able to confirm for sure if Athorn et al. are involved; the only name on the "official" announcement was Troy's. I'll let you know when/if any more documents become available for public consumption. But given that Athorn's nose has been up Katie for decades, it would be surprising if he didn't have his fat little hand in the pie somewhere, somehow.
At any rate it goes without saying that a lot of people will be pretty ticked off if this sale, which of course is subject to final approval by Judge Robert Gettleman, goes through. As I understand it, the court has wiped away the liabilities so any purchaser(s) will be buying GIN free and clear (at least from a monetary standpoint; courts don't directly address matters of karma).
In case you don't recall who Troy McClain is, he was one of Kevin's cheerleaders, and one who was pushing hard to keep people from leaving GIN in droves in the latter days. He's apparently most famous for having been on the comically repulsive Donald Trump's "reality" show, The Apprentice. Troy was the country boy that everyone fell in love with, according to Troy. He failed three times as project manager, and got fired on Week 12 of Season 1, original air date April 1, 2004. He was fired mostly because he sometimes used unethical business practices during the interview process, and partly because he only had a high school diploma.
The Jan. 12, 2014 update towards the end of this Whirled post has a bit about him, as do some of the comments.
Troy was/is a proud member of the GIN "faculty."
Troy has been very close with the GIN United group of GIN"leadership" and Katie buds, who have been talking for months about purchasing GIN.
And here's Troy in 2011, shilling with old-school hustledork Ron Ball on behalf of Katie and GIN. I think this one is pretty disgusting. https://www.youtube.com/watch?v=qgr9UjW1Ops
And here he is around the same time, lying to people about how easy Katie's version of the hCG diet is (he seems a little coked-up, but maybe he just had allergies):
Besides the KT Radio Network web site URL on that video, there's an hCG web site URL that, when you attempt to follow it, redirects to http://hcgchicago.com. According to that site, the "hCG support team" is led by one Thomas Drost, M.D., N.D., F.A.C.S., and his wife Lisa Drost, N.D. An alert reader pointed out to me that Dr. Drost is also a hemorrhoid doc who treats hemorrhoids and cures anal fissures in DuPage County and Chicagoland. Funny. On that 2011 KT vid I linked to above, Troy yammered on a bit about he LOVES to go fishing and always has. He gabs about both literal and metaphorical fishing. So... Troy is a fisherman. Dr. Drost is a fissure man. This opens up a whole new world of interesting Photoshopping possibilities. But I digress.
Here's more about what a superstar and master brander and co-brander our Troy is. http://theitfactorradio.com/alycia-kaback/tune-check-factor-features-troy/
And here's more about why you should hire Troy for all of his expert expertise.
Anyway. You get the drift. Troy seems perfectly poised to be a front guy who will take GIN to the next level of scamming. (His web site does say he specializes in "turnarounds.")
And besides, Katie has been on his client list for a few years now; note the "Natural Cures" and "Stand With KT" (his original legal defense fund) logos in the lineup below:
I see new infomercials in the making, with Troy as one of the spokes-hucksters. Maybe they can even get some really big names in Scamworld to join in the fun. It remains to be seen whether or not the GIN MLM/"affiliate" program will be reinstated; I do know that several of the prospective purchasers were very interested in exploring this possibility.
It also remains to be seen how or if the SciWINtologists, led by former GINtervenor and ex-con Perry Kiraly (and Scientology fan Yon Vetter Cole) will be involved. When their Plan A to snatch GIN from the clutches of the receiver failed in court, they began focusing in earnest on Plan B, and have been trying for months to cobble a GIN ripoff called WIN, or World Information Network. In the process they probably ran up a huge attorney bill, so expect some Shimkos to still be hovering around somewhere. But they have been kind of silent for the past several weeks, although Yon did send me a private message on Facebook explaining exactly why he is NOT a Scientologist. I told him to tell it to the blog. He said he might, but hasn't yet. [NOTE: See April 20 update below. ~CC]
The heads of another failing GIN ripoff, the IMBS-ing U MasterBaiter's Society, are already telling folks to write to the judge, though.
In his blog post about this pending sale, Bernie made note of this bit from the announcement email:
AXS and its management team will now be actively working hard to make our club the best it can be with the commitment to never over promise and under deliver.Spoken like a true Scamworld scammer. "We promise not to screw you; trust us!"
At this point it seems entirely possible that even the hopelessly caged Katie might still have a hand in the club, even from behind bars. (Unless Judge G says no to the sale, of course -- but another group of Katie pals could always step up to the table.) The point is that Trudeau's legacy lives on. And despite the many folks who will be outraged if the sale is finalized, there are also many, many people who still love Katie nearly to the point of worship, and think that his conviction and sentence are gross injustices, and want more than anything for his legacy to continue through GIN. As I've noted on this blog before, the GIN "leadership" are going to have to find a way to pander to both the Katie lovers and the Katie haters.
But one way or the other, it seems that GIN is still alive and kicking.
As I said... no neat and tidy endings. There rarely are, in Scamworld.
Update, 20 April 2013:
We didn't have to wait long to see what the SciWINtologists are up to. They are apparently going ahead with their plan to compete head to head with GIN. Time to stock up on more popcorn and beer! This was sent out early Easter morning:
From: [email address redacted]With a convicted felon at the helm, WIN members who miss GIN should feel right at home.
Sent: 4/20/2014 1:41:28 A.M. Eastern Daylight Time
Subj: WIN Update 04-19-14
April 19th 2014
Dear WIN Members & Supporters,
March 31st concluded the time line of the Private Placement Memorandum and we did well.
The launch of WIN’s Website is currently on target for early May.
An introduction video was professionally filmed on April 10th and should soon be completed and up for viewing and release to everyone for use in the promotion of WIN. The video outlines what the club is all about as well as the benefits and value of membership.
After months of consulting with WIN’s MLM attorney Thayer C. Lindauer, WIN has completed a sponsorship compensation plan Member/Affiliate program that I think will excite nearly everyone.
A few of the highlights of the Member/Affiliate program are:
Commission eligibility requires only one non-affiliate member in good standing personally sponsored in your downline; period. Not one per month – one non-affiliate member; period (and it doesn’t matter when that member was sponsored in as long as they’re in good standing you are commission eligible).
High percentage commission’s payback on the first four levels:
L-1: 20%, L-2: 20%, L-3: 5%, and L-4: 5%.
Our MLM attorney has thoroughly vetted this sales program for compliance with MLM rules & regulations and has authorized its use on a worldwide basis.
Upon the launch of the WIN site the Member/Affiliate program will be up and running.
To further start WIN’s site launch off right and in honor of former GIN Members - for thirty days from the date of launch the membership fee of $1,000.00 will be waved.
To join and become a member, initiation of your monthly dues of $150.00 is all that is necessary. To take advantage of the waved membership fee you will simply use the sponsor/affiliate code WIN or the code of the WIN Member that sponsors you in.
To all former GIN members that had downlines, and plan to participate in WIN’s Member/Affiliate program, now is the time to begin calling your downlines in preparation for the launch of WIN’s Website. Once the website is launched you can sign up using the WIN sponsor code. You will then be given your own code to sponsor Members under you. If any Member of your former downline inadvertently uses the WIN code and actually wanted to be and requests to be back in your downline that request can be granted.
Additionally, all former GIN member training levels achieved will be honored in WIN if you join within the 30-day period from launch. There will be additional testing requirements to acquire the equivalent Pin Level in WIN but no charge for the upgrade.
Lastly, negotiations with the Wynn Hotel Resort in Las Vegas http://www.wynnlasvegas.com/ are underway to do WIN’s first major event there. Details will be forthcoming.
Finally, WIN’s official Facebook page is up and running. Click on: https://www.facebook.com/WINFDN?ref=hl to connect with us. WIN’s official Linkedin and Twitter page is also under construction and will soon be available.
Thank you and have an excellent day,
Executive Director, World Information Network
Update, 21 April 2014
Here is the court document filed today, regarding the terms of the proposed sale of GIN. Proposed sale price is $200k, with a few terms and conditions, including, for a period of one year, payments equivalent to 8% of the member dues for existing members, and 4% for new members. Favorite Whirled wag Tim Donohoe noted, "Essentially they are paying for a mailing list of suckers and paying the FTC a commission on everyone who stays suckered or gets suckered into GIN in the future." (At least for a year, anyway.)
Tim mused, "Not a bad deal for an up and coming scammer." Yep.
But as I noted above, if the sale is approved, the purchasers will not be purchasing any liabilities incurred by Kevin Trudeau's mismanagement. There may be some lawsuits filed by disgruntled ex-GINfolk, not to mention some justified ill will. But they won't have much luck getting any of their money back, since the court has wiped away the liabilities. And as I've said, there are still plenty of folks who love Katie.
What the purchasers will have is the intellectual property, including those all-important mailing lists. The various GIN ripoffs such as IBMS and WIN are probably seething with envy over the lists alone. There's still a chance that the purchasers can make money with the new, rebranded GIN. People seem to have an endless need to feel "special," and they'll pay dues to feel special, particularly if they think they can make some money from selling other people a chance to feel special. And the prospective purchasers have indicated that they will explore the possibility of starting up a new affiliate program. Hold on to your wallets.
As I've noted before on this Whirled, there is a bit of historical precedent here. Landmark Forum grew to a worldwide multi-million dollar company after the sleazy Werner Erhard (supposedly) sold the intellectual property that was est. So the people who are crowing that the prospective purchasers of GIN are making a bad business decision don't really know what they're talking about.
Meanwhile, Katie struggles to get his appeal going. He's claiming to be too poor to afford the filing fee, so he filed a form stating that he's a pauper. I saw the court docs the other day and shared them on Facebook. ABC7 (Chicago) picked up the story too.