Friday, September 20, 2013

Kevin Trudeau, the saga

[9/18/13] Controversial TV pitchman Kevin Trudeau, who in July was found in contempt for failing to pay a $37.6 million sanction against him for deceptive marketing, was ordered to jail today and remains in federal custody in Chicago.

In August, a federal judge sided with the Federal Trade Commission in granting a court-appointed receiver broad authority to marshal assets and take over businesses the judge ruled were controlled by the infomercial king.

Appearing before U.S. District Court Judge Robert Gettleman today, Trudeau was found in contempt for violation of the asset freeze and receivership by transferring nearly $20,000 from an Australian account and for using a debit card tied to that account to buy things beyond what is ordinary and necessary living expenses.

The specific expenditures from the Australian account that led to the contempt finding, meaning money Trudeau allegedly spent after the asset freeze, included $894 at a liquor store, $359 for two haircuts at Vidal Sassoon, $1,057 for meats ordered online and $920 on cigars. There was also an $18,642 transfer from the Australian account that was paid to a lawyer who worked on Trudeau's taxes, which happened without the judge's approval.

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[9/19/13] Former infomercial king Kevin Trudeau was released from jail today after spending one night in federal custody in Chicago.

Trudeau and his attorneys argued Wednesday for more time to prove his cooperation, and offered to pay back any money spent on things the judge deemed inappropriate expenditures.

But Gettleman wasn't convinced and ordered Trudeau to report to the Metropolitan Correctional Center and to remain in federal custody.

But Trudeau, who appeared in court today wearing a short-sleeve orange jumpsuit, with slip-on orange sneakers, pleaded for the judge to believe him and pledged once again to be "100 percent" cooperative.
"I am penniless. I am homeless. I surrender. I am at your mercy," Trudeau told the court. "I will do anything you ask."

After hearing his pleas, Judge Gettleman said he is giving the controversial TV pitchman another week to somehow convince him that Trudeau is truthfully disclosing his assets, and granted Trudeau his freedom. Gettleman admonished him to cooperate fully or else he would be back in court "wearing the same color you are now."

Trudeau's next court appearance is scheduled for next week.

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[3/17/14] CHICAGO » Best-selling author Kevin Trudeau, whose name became synonymous with late-night TV pitches, was sentenced to 10 years in prison Monday for bilking consumers through ubiquitous infomercials for his book, "The Weight Loss Cure 'They' Don't Want You to Know About."

As he imposed the sentence prosecutors had requested, U.S. District Judge Ronald Guzman portrayed the 50-year-old Trudeau as a habitual fraudster going back to his early adulthood. So brazen was Trudeau, the judge said, he once even used his own mother's Social Security number in a scheme.

"Since his 20s, he has steadfastly attempted to cheat others for his own gain," Guzman said, adding that Trudeau is "deceitful to the very core."

Trudeau, whose trademark dyed black hair turned partially gray as he awaited sentencing in jail, showed little emotion as the stiff sentence was handed down at the hearing in Chicago.

Addressing the judge earlier in a 10-minute statement, Trudeau apologized and said he's become a changed man. He said he's meditated, prayed and read self-help books while locked up at Chicago's Metropolitan Correctional Center.

"I have truly had a significant reawakening," said Trudeau, who was dressed in orange jail clothes. "If I ever do an infomercial again ... I promise: No embellishments, no puffery, no lies."

Trudeau became rich selling millions of books with titles such as "Natural Cures 'They' Don't Want You to Know About" and "Debt Cures 'They' Don't Want You to Know About," touting them in commercials with a news-interview formats.

As legal scrutiny intensified over the years, Trudeau claimed the U.S. government was out to get him, and he accused agencies and other vested interests of conspiring to suppress low-cost, common remedies to diseases, including cancer.

His weight-loss book, which once topped best-seller lists, was the focus of the criminal conviction for which he was sentenced. It also was the subject of related civil case brought by the Federal Trade Commission, in which Trudeau was ordered to pay a $37 million judgment.

In that civil case, Trudeau said he couldn't pay the judgment because he's broke. But FTC lawyers balked at that claim, accusing him of hiding money in shell companies. Trudeau, they noted, has spent lavishly in recent years, including $359 on two haircuts.

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