Serial scammer Kevin Trudeau is in trouble again (or still)

This post has been updated.

Well, that sure didn't take long.

I know this will come as no big surprise to anyone who has been even marginally keeping up with the saga of serial scammer Kevin Trudeau, who was recently released from federal prison after serving about eight years of a ten-year sentence, but... he's in trouble again. Or rather, he's still in trouble over a matter that never actually went away: the millions of dollars that the U.S. Federal Trade Commission (FTC) says he still owes on a nearly $40 million judgment from years ago; and the FTC's belief -- which I happen to share -- that he has untold wealth hidden offshore.

On Thursday, November 17, Trudeau (aka KT, aka Katie on this Whirled) appeared in court before Judge Robert Gettleman, as reported in various Chicago-area media, such as ABC-TV Channel 7 (reporting by investigative reporter Chuck Goudie), and the Chicago Sun-Times (by CST wire reporter David Struett). He's due back in court on November 30, and has an FTC deposition on December 9. I'll try to retrieve some documents from PACER and share them with you.

Apart from the big question about possible (probable) hidden wealth, both the ABC7 and Chicago Sun-Times piece report that Trudeau appeared to have violated his order to notify the court when he was released from prison. From the Sun-Times:

Prosecutors said Trudeau had ignored the order. “I think they wanted this to go away,” FTC lawyer Jonathan Cohen told the judge.

Trudeau’s lawyer, Giel Stein, said it was a “misunderstanding” and apologized. “He’s deeply regretful he did not show up at the end of his home confinement,” Stein said.

But I'm not buying it, especially since Katie took the time and trouble to actually write a letter to Judge Gettleman back in January of 2020, seeking clarification about what he needed to do, and what would be allowed to do, once he was released. I wrote about that here; that post also contains screen shots of the original judgment/sentencing document that outlined the restrictions Trudeau would face upon release. Even if he never received a direct answer from the judge, the matter would still have to have been on his mind. My guess is that he just blew it off, figuring he could get away with it.

As for the issue of hidden wealth, apparently there's new evidence. From the Chicago Sun-Times again:

At issue are two boxes of new evidence provided to the FTC by Trudeau’s now-ex-wife. The government wants to use those documents in Trudeau’s upcoming deposition, but the defense lawyers asked to review them for possible violations of attorney-client privilege. The judge ordered that attorneys on both sides review the documents and report back to him.

Prosecutors also allege Trudeau hid millions of dollars overseas and plans to flee there. The new evidence comes from information from Trudeau’s ex-wife’s testimony in their divorce proceedings, prosecutors said.

I imagine those divorce proceedings were... very interesting. From what I've heard, Katie's ex is well rid of him.

According to the news reports, Kevin really wants to start traveling the world for "business." But for now, he's grounded in the Chicago area. Oh, dear, if only he could just jump on that big luxury cruise ship he's been dreaming about, and sail away... Except, of course, the ship doesn't exist yet.

Kevin bites back
Naturally, Katie had something to say about his latest troubles, and he said it on the Kevin Trudeau Fan Club Telegram Channel on November 18, the day after his court appearance. Here's the direct link, if you have 15-plus minutes to waste.

If you'd rather not waste your time, I'll recap it for you here. Kevin spends the first part of his message 'splaining why it makes no logical sense for him not to have paid that $37 million years ago if he'd had the dough, thus avoiding a prison sentence. He repeatedly says that he didn't then and doesn't now have the money, and laments that it is impossible to prove a negative, so what's a poor boy to do?

Now, if you were just listening to this without the benefit of knowing Trudeau's past history, that would all sound quite reasonable. But in the years prior to his trial and conviction, he had a notorious history of claiming to be poor, while he still continued to spend lavishly on himself. It's not unreasonable for the government to believe he still has money somewhere, since he repeatedly lied about it before. While it's true that the government seized as many of his assets as they could manage to get, the question that they asked back in 2013 and 2014 has never gone away: was there more? Investigators believed then and still believe that there is more, and I think they are right.

What also sounds more than reasonable, on the surface, is Trudeau's claim that it "makes no logical sense" for him to have not paid the big fine when first ordered to do so, or at least when the threats to lock him up began, thus avoiding what ultimately turned out to be a years-long prison sentence. Again, however, you have to look at the past, and here I don't have specific links because so many of them have apparently been wiped from the Web. You'll just have to trust my long-term memory.

For I do recall the defiance that Trudeau expressed on many occasions, starting back when the fine was considerably smaller than nearly 40 mil. Even as he was telling authorities that he didn't have the money to pay up, he was also telling his followers, via videos and on his radio show and more than likely at live events too, that he was refusing to pay on principle, mostly having to do with fighting government tyranny and so forth. He was, he repeatedly assured his followers, being a brave fighter not only for his own First Amendment rights, but for the 1Arights of all of us. Meanwhile, he continued to enrich himself from his various scams and schemes.

As well, he repeatedly violated consent orders that he had signed with the FTC, which only increased penalties and his own legal jeopardy. Subsequently, when called by the gov on one violation or another, he would always claim innocence, saying that he absolutely, positively had no intention of violating anything, and that he was doing his level best to cooperate fully. That was his losing argument in his criminal trial, in fact. Yet all the while he was playing the innocent, he continued with his defiance act, using it to burnish his hero/martyr narrative. He kept this up until there was no turning back. As they like to say on social media these days, FAAFO.

As the Telegram spiel continues he spends some time in motivational master mode, offering advice on how to handle adversity and gabbing about how the special training he offers can help anyone do just that. He also, as per usual, takes a few moments to peddle some of the overpriced frauducts that he sells through the Kevin Trudeau Fan Club website and Facebook page.

But the main purpose of the message -- and once again, this will probably come as no shock -- is to beg for money, and he mentions the link to the donation site a couple of times. Katie warns that his lawyer bills could possibly rack up to millions of dollars. Frankly, I'm surprised any lawyer took on his case, after he reportedly stiffed so many previous attorneys, but perhaps it's possible that the attorney named in the news stories, Giel Stein, is working pro bono, which, if that's the case, would negate the claim about millions of bucks in legal fees.

If you follow the embedded link in the previous sentence, you'll notice that some of Mr. Stein's listed accomplishments include defending big pharmaceutical companies, big insurance companies, and government agencies, so... maybe not the best choice for a lawyer for a defendant who's been loudly speaking out against all of the above for decades? That should be interesting.

In any case, legal fees are pretty far down on the list of the Official Kevin Trudeau Fan Club's list of what your donations will be used for.

Your Contributions made to The Official Kevin Trudeau Fan Club (ContributeToKevin.com) therefore will be used to pay for these things and more (this is just a partial list of possible uses):

• a place for Kevin to live and all his living expenses (utilities etc)
• furnishings for Kevin’s residence
• food
• nutritional supplements
• computers; cell phones; internet services; mobile phone service
• personal care items
• medical and all other insurances
• dental care, haircuts, eye care (contacts and glasses)
• car; insurance; petrol (gas); parking; maintenance
• clothes
• travel: transportation, hotels, meals 
• lawyers and other professional services
• subscriptions
• secretaries, assistants, transcribers, researchers, social media managers, booking agents, drivers, security, etc.
• and many other possible uses of the funds donated

Trudeau wraps up his Telegram message with his usual spiel about bad things happening to good people, and assures his fans, "Suffering is an option I choose not to take."

Of course. His go-to option is grifting, though over the years he has proven time and time again that he's not above playing the suffering victim in efforts to get leniency from the courts or to manipulate people into giving him money.

They've heard it all before
I think the prosecutors and Judge Gettleman are too smart to fall for Kevin Trudeau's excuses. And good for the ex for handing over that evidence. But if I were the investigators, I would also be scrutinizing the "success club" that Kevin founded back in 2009, the Global Information Network, or GIN. Back when Trudeau was officially running it, GIN was a huge scam that sucked millions of dollars out of thousands of rubes (see the link in the previous sentence for a capsule history of the scam), but technically GIN was not the reason he was charged, tried, convicted, and locked up. Even so, to this day a number of former GIN members would love to see Kevin Trudeau be held accountable for GIN; absent charges/trial/conviction/incarceration, they would simply like have their money back. That will almost certain never happen.

By the way, I've made this point and shared this link several times previously, but it bears repeating that Jason "Salty Droid" Jones strongly disagreed with the prosecutors' assertion back in 2014 that a ten-year sentence was sufficient because, according to them, no one who bought Trudeau's weight loss book was financially ruined. They may not have been ruined by the purchase alone, but for many that book, like Trudeau's numerous other loss leaders, was a gateway drug that did lead to financial and/or emotional ruin. But that's a whole other story.

Under court order, GIN was sold in May 2014 to a group of Trudeau's close buddies, and though ownership has shifted since then, to my knowledge it is still owned by pals of his, chiropractors Dr. Tom and Dr. Ted Morter, and career huckster Blaine Athorn. Reportedly Kevin is not legally allowed to be benefiting financially at all from that enterprise. My understanding is that he's not even supposed to be calling the shots, though I suspect that he's been "shadow running" it for some time now, perhaps in violation of the terms of his probation.

At any rate I think it would be wise for the investigators to look into GIN's finances -- if that's possible -- to find out if, for instance, the proceeds from the club's live events, and from some of their other income sources, are being funneled to Kevin through the official donation site or other more hidden outlets.

The inevitable recap of the larger issues
I've discussed these issues at some length in previous posts, so this is mainly for the benefit of new visitors. First off, whether Kevin Trudeau should be locked up again, if he fails to satisfy the government's and the court's demands, is a larger question that I do actually believe is pertinent, and some who are new here may be surprised that I'm not firmly in the lock-him-up camp. I've said many times before that in general, I don't believe nonviolent criminals should be locked up (those who incite violence, such as Donald Trump and numerous other republican politicians who are directly responsible for the violent January 6, 2021 insurrection, are another story, however).

Regarding Trudeau, the blunt truth is that being imprisoned never stopped him from scamming. Moreover, locking him up now almost certainly won't lead to the recovery of hidden assets. It would be punitive, and perhaps would be poetic justice or karma, if you believe in such things. And locking him up could limit his huckstering activities, but again... it won't keep him from grifting, either directly or through his loyal proxies. The bottom line is that the government would probably be no closer to reaching its stated goals of retrieving the money still owed, presumably so the remaining refunds to those who bought Trudeau's wacko diet book, The Weight Loss Cure "They" Don't Want You To Know About, can be issued. I discuss the incarceration issue in a January 2022 post, under the subhead, "Did prison change Kevin Trudeau?"

In other words, I recognize that there are nuances to this story, as there are to most stories. But the gist of it is that Kevin Trudeau is, has always been, and almost certainly always will be a scammer -- and my opinion on that issue is anything but nuanced.

Secondly, some may be asking why this obvious crook is even still important in the larger scheme of things. Isn't he so... yesterday? Rather than re-invent the wheel, I'll just direct you to the aforementioned January 2022 post again (under the subhead, "Why this still matters, after all these years"). Here's a snippet:

...one major reason that I think Kevin Trudeau is still important, apart from my concern that he has spent decades cheating people out of their hard-earned money, is that he is flagrantly symptomatic of a nearly out-of-control trend of misinformation/conspiranoia crapitalism.

Of course Trudeau was in many respects far ahead of the curve, since he has been trading in "information that 'They' don't want you to know" for decades. Most of that "information" has consisted of misinformation, distortions, exaggerations, lies, repackaged selfish-help/McSpirituality content, or, in some cases, cherry-picked data about issues that have been addressed by far more responsible consumer advocates, whistleblowers, and muckrakers. But the nebulously evil "They" were the perfect scapegoat for Trudeau's marketing strategies...

And as I wrote at the end of that post, "Caveat emptor."

Stay tuned for further reports.

Update, December 6, 2022: Jason Meisner at the Chicago Tribune reported on Trudeau's November 30 hearing. The government is still considering "coercive incarceration" (which has never worked in the past to get Trudeau to cough up the dough, but whatever).

At a hearing Wednesday, [FTC attorney] Cohen revealed newly discovered emails that he said show Trudeau was seeking to ship and store 300 pounds of gold bars and other precious metals in Switzerland in 2013, the same time he was crying poor to the court.

The FTC has also learned that around the same time, Trudeau hired two law firms in Switzerland to research what impact pending lawsuits in the U.S. would have in Switzerland as well as the logistics of legally changing your name in that country, Cohen said.

Of course, Trudeau is once again stalling for time.

Trudeau’s attorney, Giel Stein, accused the FTC of jumping the gun, saying Trudeau “is acutely aware of the consequences here” and only wants to know how much he still owes so he can figure out how to begin repaying it.

Stein also said it made no sense to put Trudeau in jail before he’s given the chance to answer questions under oath about his assets at a deposition, which is scheduled for Dec. 9.

Judge Robert Gettleman, though clearly fed up with Trudeau's lies and his stall tactics, declined to incarcerate Trudeau immediately, setting a December 15 hearing to sort things out. Meanwhile, Trudeau's lawyer, Giel Stein, says he wants to question Trudeau's ex-wife under oath about “eight suitcases of materials that (she) absconded with” from Trudeau’s storage facility in Zurich, Switzerland. Sounds like the defense is trying to blame the ex for Trudeau's crimes.

More updates to come.