Neo-stinker Mark Scamilton cleaned up in GIN -- everyone else, not so much
As many of you who are following this saga may know by now, yesterday, September 6, was an active day in the courts for the folks who are poking around in serial scammer Kevin Trudeau's business entities, which include but are not limited to his Ponzi-like Global Information Network (GIN). For one thing, the receiver -- Robb Evans & Associates LLC, who took over on August 7 -- turned in their first monthly report -- and truly, they have been busy little bees (Case No. 1:03-cv-03904, The Hon. Robert Gettleman presiding). In addition, the proposed jury instructions and pre-trial motions for the November 4 criminal contempt case (Case No. 1:10-cr-00886, The Hon. Ronald Guzman presiding) were filed by the government and by Trudeau's lawyers.
It is the civil case document -- the Receiver's First Report, with attached exhibits -- that is causing most of the buzz on Facebook. The usual suspects are foaming at the mouth, as my pal Bernie put it on his GINtruth.com blog about the matter. Mocktor Loony Coldwell and his "little brother"/protege are saying that this it -- BOOM! -- the end for GIN, for KT, and for the "zombies" who still believe in Katie.
Although much of the information from these mouth-foamers is over-stated and exaggerated and has to be taken with a whole shaker full of salt, the truth is that things don't look so good right now for Katie or for GIN. Top staffers have been let go (including Kevin's ex-girlfriend, long-time business partner, and past co-defendant in various legal actions, Janine Nubani Contursi). The receiver is seriously questioning the legitimacy of the MLM portion of GIN and the club's future profitability. And they have banned Katie from speaking at GIN events, live or otherwise, even without pay.
If you are at all interested in this case, you really do owe it to yourself to read the entire Receiver's Report. Here is that link again; Bernie put it on his site.
As you may also know, because I keep telling you and I won't shut up about it, I've been writing about how GIN is a scam since, oh, 2009, shortly after GIN was officially launched. And I wrote about how Kevin Trudeau is a scammer many months before that. But the truth is, my snarking only scratched the surface. I didn't have any inside info or numbers to back up my contention that GIN is a scam, at least if you're trying to make money with it. The only GIN members I ever heard from were those who ventured outside the GIN bubble enough to perceive the presence of my blog, and to write to me about what a jealous loser and hater I am.
For the past sixteen months or so, however, I've not only been making friends with ex-GIN and even a couple of current GIN members, but I have also been scouring reams of court documents, and in the process I've seen much more concrete evidence that...yeah, GIN is a scam. I could have told me that years ago. And I did. Okay, I'll shut up about that now.
There have been hundreds of pages of financial records and other corroborating material filed in the courts over the past year or so. But the Receiver Report puts it down in black and white, in a concise manner. Here are just a few screen shots taken from that report (and as usual, click to enlarge):
And if you really want to get ill, take a gander at the "Inner Circle" numbers.
Despite the fact that some folks spent more money on GIN than many of the world's people will ever see in their lifetime, GIN has not been a money maker for anyone but a few at the top -- including Kevin and his wife Natalyia Babenko, of course. But do you care to take a wild guess at who made the most in commissions, by far? If you've looked at the graphic at the top, or even read the title of this post, you probably already know. That's right: Mark Hamilton, aka Wallace Ward, Jr., aka on my Whirled Mark Scamilton, of Neo-think/Neo-Tech/NovaTech/Nouveau Tech/Society of Secrets infamy.
I first wrote about Scamilton and the Neo-Scampire in August 2011: here and here. I wrote more about the GIN/Neo-stink connection in this May 2013 post.
(In the May 2013 post you'll also see more evidence of the scammy circle jerk in action, in this case, then-GIN staffer Peter Wink and then-GIN speaker and GIN recruiter Loony Coldwell hanging with Neo-stink promoter Steven Hinz, who has ended up in some legal hot water himself for committing fraud in his own businesses. Turds of a feather...)
When I first read about Neo-Tech, etc., it was in a context totally devoid of any mention of Kevin Trudeau, as you'll see if you read the long and rather circuitous post in the first link in the paragraph above. I'd never even heard of Neo-Tech before that, though it had been around in one form or another for decades. Yet I had this strange feeling there was a connection between Neo-Tech and GIN. Something about that whole seekrit-society/forbidden-knowledge marketing meme reeked of collusion between the Neo-Scampire and the True-dough Screw-topia.
And I was right. A little casual digging revealed a long-time connection between Scamilton and Trudeau, perhaps beginning when Kevin first met Scamilton's late dad Frank Wallace (aka Wallace Ward Sr.) when the two were doing time in prison. Over the decades, the Neo-Scampire and the Wallaces have garnered their own cultish following, which include relatively normal people as well as those who make Trudeau's nuttiest followers look downright sane and almost boring.
It seems clear to most of us who have read past court documents, and correspondence dating as far back as 2008, that Katie's former attorney and "asset protection" expert Marc Lane was the big co-conspirator regarding the legal structure of GIN and related entities. But Scamilton's fingerprints are all over this and other Katie operations. Oh, my goodness, here's an email from early 2009, in which Wallace Ward's name was mentioned. This email showed up in one of the civil case court documents filed this past July (Document # 723-6, filed 07/22/13, Page 49 of 142):
Sent: Wed, 7 Jan 2009
Subject: Following up
Good to see you today, as always.
Your observation that Wallace Ward's company has entered into a sponsorship relationship with IPT [International Pool Tour] prompts me to remind you that IPT is owned by you and not, ultimately, by KMT Fiduciary Trust. As an asset of yours, the company itself is subject to claims of your creditors, including the FTC. For that reason, you should maintain only minimal cash (or other assets) in IPT or any company you own.
It may make sense for me to assume a greater role in cash management, both to maximize such asset-protection opportunities and to minimize income and other taxes. If you'd like to consider this idea, I'll be happy to discuss it with you at your convenience.
Finally, thanks for understanding about my cash-flow challenges. You know I'll always do all I can for you, and I'm grateful for your sensitivity to the realities we both face.
The Law Offices of Marc J. Lane, P.C.
[Marc J. Lane contact info]
Marc Lane was the main legal brain behind the scam, but Mark Hamilton, aka Wallace Ward, was clearly one of the "creative" brains behind GIN, and has been one of its most aggressive marketers. Here's a snippet from a court doc filed this past July, with some red Cosmic annotations, of course.
A friend of mine who is in the know, having worked for a Trudeau business in the fairly recent past, says, "I think if everyone really knew, they would be so surprised at exactly how much influence and pull Mark Hamilton has had [behind the scenes] and in creating GIN."
Indeed. I published these jpegs in my May 2013 blog post about Scamilton, but here they are again. They depict a hype-y "typewritten"-looking letter dated November 2009 (personalized, of course, though the name is redacted) that has every lame cliche in the book.
You have to wonder how anyone could believe such cliched, simplistic copy... but apparently many people did.
And now we see the receiver's data. Scamilton had not just one but two GIN accounts: one under his pen name and one under his real name. According to the receiver's figures, he made nearly ten and a half million dollars in commissions between 2009 and 2013. Here is another close-up:
Now, granted, that's a rather modest sum by the standards of the big-time scammers of the world, but it's still a hell of a lot more than anyone else made from GIN -- possibly even including Kevin Trudeau himself -- though I have a feeling the receiver will find many more sneaky and under-reported money streams for Kevin. Credible sources from the ex-GIN camp have pointed out that Trudeau made many times more from GIN than is shown in the commission figures -- for instance, he made millions from the sale of the GIN tools. And as one of my ex-GIN friends noted, "That's not even to mention the money he made selling private promos -- the [Baccarat] gambling scam... plus 5 grand per hour to talk to him." So I'm not exactly weeping for Kevin. He cleaned up more than anyone.
The point here is that all told, Mark Hamilton, aka Wallace Ward, did quite well for himself with GIN. Nice scamwork if you can get it.
To me, that's one of the pretty big sub-stories in this whole thing that none of the mainstream media -- or anyone else -- seem to be reporting. Why aren't any of the authorities digging into Mark Scamilton's affairs? Or are they doing so, but just being kind of secretive about it for now?
Let me know if y'all hear anything. And I'll do the same for you.
More True-dough on this Whirled:
- September 2013: Kevin Trudeau's opulent lifestyle in danger (maybe), while the Scamworld Express chugs along
- August 2013: Man made famous by Kevin Trudeau tells you how to cure aging, death, tumors, herpes, and ugliness
- August 2013: Kevin Trudeau smacked around again by ABC, while Loony Lenny & Captain Winky sell speed
- August 2013: Kevin Trudeau: things heat up as criminal trial approaches
- July 2013: No cage for Katie (sorry, Lenny)
- July 2013: Leonard Coldwell and Kevin Trudeau: love and marriage and pots and kettles
- July 2013: Kevin Trudeau asks court to let him go to Zurich, FTC sez no, judge sez no too
- July 2013: Kevin Trudeau: The FTC is really, really mad now...sort of
- July 2013: Kevin Trudeau: Gone fishing? Or something...
- July 2013: Kevin Trudeau: Rumors, lies, and SNAG support
- June 2013: The Health Ranger: another phony hero in the fight against Scamworld?
- June 2013: Kevin Trudeau in court again: Something big... something really big!... or maybe not
- June 2013: Kevin Trudeau and justice: muddy waters
- May 2013: ABC has fun with Kevin Trudeau, and life goes on
- May 2013: ABC tackles Kevin Trudeau -- again!
- May 2013: Kevie goes a-courtin': pleading the Fifth
- May 2013: Kevin Trudeau: Justice...or just more paper shuffling?
- May 2013: Kevin Trudeau: Countdown to court date (or not)
- May 2013: Kevin Trudeau + Mark Hamilton = GIN with a twist of Neo-stink
- April 2013: Bankruptcy: GIN members await Level 7 while Kevin Trudeau files Chapter 7
- March 2013: Ryan Kath at KSHB-TV does Trudeau/GIN update, Coldwell & Wink continue to scam with cheap imitation of GIN
- February 2013: Kevin Trudeau's GIN: The sky is falling (again)...yawn
- February 2013: Loony Coldwell: Cheesy video and bad spelling
- February 2013: IBMS Master's Society Supreme Loony Coldwell strikes again
- February 2013: Faux heroes and hypocrisy in action
- February 2013: Meet the new scam, same as the old scam, Part 2
- January 2013: Vital signs: "Immortal" (former) breatharian Mony Vital dies on GIN cruise
- January 2013: Meet the new scam, same as the old scam, Part 1
- December 2012: 2012 ~ The Whirled goes on
- November 2012: Kevin Trudeau: justice delayed...again
- November 2012: Kevin Trudeau exposé on KSHB-TV: buzz, backlash, and big beginnings
- November 2012: Alien nation: just how crazy is Kevin Trudeau (not to mention his sheeple)?
- November 2012: Kevin Trudeau: KSHB-TV undercover investigation
- November 2012: Kevin Trudeau gets some more mainstream lovin'
- October 2012: Evil has not won
- October 2012: Kevin Trudeau: Rats in our heads, GIN down the toilet...and life goes on
- October 2012: Kevin Trudeau: The shape of things to come?
- September 2012: Leonard Coldwell and Fred Van Liew: Pot, meet kettle
- August 2012: Truth is better than GIN any day
- July 2012: Drunk on GIN, and you can too!
- July 2012: Kevin Trudeau's GIN: part of the big sick machine
- July 2012: Independence Daze
- May 2012 (updated September 2012): Paging Dr. C: Bernd bridges in Deutschland?
- May 2012: Can alien DNA save Kevin Trudeau's GIN?
- May 2012: Does a canary with a GIN hangover sing as sweetly?
- April 2012: Viva Lost Wages: Sin City Become GIN City for a weekend
- February 2012: A. Rose by any other name would shill as sweet
- December 2011: True-dough updates: Bad poetry for KT, hate mail for CC
- November 2011: A jumpsuit for Jimmy
- August 2011: First Amendment Stuporhero
- August 2011: Everything old is Nouveau again (or, Neo-scam by any other name) -- Part 2 of 2
- August 2011: Calling all lazy men: let's build a pyramid together!
- August 2011: Everything old is Nouveau again (or, Neo-scam by any other name), Part 1 of 2
- June 2011: Holy Guacamole! True-dough's racist rants
- June 2011: For he's a jolly good felon: True-dough speaks out for Death Ray
- December 2009 (amended several times in 2010): Illuminutty: the secret brotherhood of the chronically gullible
- November 2009: How to take over the world
- July 2009: Horse farts and related matters
- January 2009: Mr. Fire meets up with true dough