Episode Transcript
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Terms apply.
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This episode of Swindled may
1:32
contain graphic descriptions or audio
1:35
recordings of disturbing events which may
1:37
not be suitable for all audiences. Listener
1:40
discretion is advised.
1:43
When Brian Gortz and his wife
1:45
Cheryl Skegan purchased this 15 acre
1:48
horse ranch in 2008, it
1:50
was to realize a lifelong dream. But
1:52
they quickly learned the legacy they bought
1:54
was based upon a lie.
1:57
Jean Vieve de Montremaire. told
2:00
her new neighbors in Fresno, California that
2:02
she had grown up in a castle in France. She
2:05
was a descendant of French nobility,
2:08
educated at the finest European schools
2:10
where she had completed a PhD in genetics.
2:13
Jean-Vieve intended to find a cure for cancer,
2:16
but got sidetracked by her hobby. Horse
2:19
breeding, Friesian horses in
2:21
particular. It was a tradition.
2:24
Jean-Vieve de Montremer's family had
2:26
been breeding horses for over a thousand
2:29
years. That's actually what
2:31
brought the French noblewoman to Fresno in
2:33
the early 90s. She and her husband,
2:35
Dr. Michael Weilert, a pathologist,
2:38
purchased a 15-acre ranch northeast
2:40
of the city where they housed over a million
2:42
dollars worth of the rare and
2:44
expensive breed. They
2:47
also hosted lavish parties and events at
2:49
the property to ingratiate themselves. Jean-Vieve
2:52
became highly regarded in the region's
2:55
exclusive equestrian community.
2:58
But unfortunately, sometime in 2003, she
3:01
was diagnosed with leukemia. The
3:03
chemotherapy took a toll on Jean-Vieve's
3:05
body. She was rarely seen
3:08
in public after that, and on the
3:10
rare occasion when she did make an appearance, she
3:13
was attached to an IV. By
3:16
late 2007, Jean-Vieve de
3:18
Montremer's heart was failing. The
3:20
details are vague, but she required
3:23
immediate open-heart surgery,
3:25
and it didn't work.
3:27
Jean-Vieve fell into a coma, then
3:29
died on November 30, 2007. Her
3:34
obituary called her the matriarch of the
3:36
Friesian community. Gone, but
3:38
not forgotten, the national Friesian
3:41
horse show that year was dedicated to Jean-Vieve.
3:44
The equestrian community was devastated.
3:47
It didn't even get to say their goodbyes because
3:50
there was no funeral. Jean-Vieve
3:52
de Montremer's body was taken back to France,
3:55
where her heart was removed and placed
3:57
in the cathedral as part of an ancient
3:59
family ritual.
4:01
No
4:01
one was more devastated than her widow, Dr.
4:04
Michael Weilert. He couldn't bear to
4:06
tend to the horses without his beloved John
4:08
V.F. So he put their
4:10
15-acre ranch up for sale. $2.3
4:13
million. Most prospective
4:16
buyers balked at the price. Property
4:18
values have been declining. The economy
4:20
was circling the drain. Dr.
4:22
Weilert was asking for more than what
4:24
the fair market dictated the ranch was worth.
4:28
Sorry, Dr. Weilert told them.
4:30
Don't shoot the messenger. The price
4:32
was firm. It had been set by
4:34
his wife's estate. There was nothing
4:37
he could do.
4:40
Dr. Weilert's ranch was finally sold
4:42
in May 2009 to Dr. Brian Gortz,
4:46
an anesthesiologist, and his wife Cheryl
4:48
Skegan, a corporate lawyer with a
4:50
passion for horseback riding. Dr.
4:53
Weilert personally gave the couple a tour
4:55
of the property, during which there were moments
4:58
when he would break down crying.
5:00
When he showed us his property, he would point and say,
5:03
every spot here is like a grave marker
5:05
for the person who isn't here and designed
5:07
all of this, Cheryl Skegan told ABC
5:10
News.
5:11
How could Cheryl and Brian resist owning
5:13
their own horse ranch designed by French
5:15
nobility? It was a dream come true.
5:18
But soon after moving in, they discovered
5:21
severe structural problems in the barn
5:23
and arena. It was estimated that it would
5:25
cost $800,000 to fix. Talk to my lawyer, Dr. Weilert told
5:30
Cheryl Skegan and Brian Gortz when they confronted
5:32
him.
5:33
Apparently forgetting that Cheryl Skegan was
5:35
a lawyer. This could get interesting.
5:38
And sure enough, while preparing a lawsuit against
5:40
Dr. Michael Weilert, Cheryl
5:42
did find something interesting. It
5:44
was the deed to the property, signed
5:46
by Jean-Vieve de Montremer,
5:49
dated March 20th, 2008, almost four
5:52
months after she had died.
5:55
Aha,
5:56
a forgery Cheryl Skegan thought,
5:58
so she contacted
7:59
Gary Hoffman and Genevieve Sanders divorced
8:02
soon after she legally changed her name.
8:06
In 1991, Jean-Vivier de
8:08
Montremer met Dr. Michael
8:10
Weilert in his laboratory where she worked.
8:13
They were married by the end of the year. He'd
8:15
always known the truth about her. He
8:18
stood out in front of the front door with us
8:20
and actually cried over his wife's
8:22
death.
8:23
We thought that we were dealing with this poor grieving
8:25
widower who was this fine of standing citizen. We
8:27
had no clue.
8:29
All of this revelatory information
8:32
was included in the lawsuit filed by
8:34
Brian Gewarts and Cheryl Skegan which
8:36
accused Dr. Michael Weilert of
8:38
hiding major issues with the property
8:40
and defrauding them by inflating the price
8:43
above market value based on the French
8:45
nobility connection which
8:47
wasn't even true.
8:49
Weilert refused the settle. His
8:51
defense argued that Gewarts and Skegan purchased
8:53
the property as is and should have
8:55
inspected it more closely.
8:57
The case was heard by a jury in 2012.
9:00
Dr. Weilert admitted on the
9:03
stand that he faked his wife's death. She
9:05
didn't even have leukemia. Weilert
9:08
said Genevieve suffered from depression and
9:10
a fear of public places and it was debilitating.
9:13
He said she was quote very ill and
9:16
her desire was to
9:16
be dead. She wanted to be left
9:19
alone.
9:20
Genevieve Sanders did not testify.
9:23
But she was deposed at her house and her bed
9:26
in a dimly lit room. We
9:28
had to use flashlights to read the documents
9:31
the plaintiff's lawyer said.
9:40
Genevieve
9:54
Sanders your maiden name?
9:59
During the deposition, Genevieve Sanders
10:02
appears too weak to complete a sentence.
10:05
The deposition was a failure. The
10:07
plaintiff's attorneys wanted to reschedule but
10:09
were blocked by the court when the defense
10:11
submitted a doctor's report that said, quote, a
10:14
deposition might kill her.
10:16
On October 25, 2012, after
10:19
an eight-week trial, the jury awarded
10:21
Dr. Brian Gortz and Cheryl Skegan $1.5
10:23
million, consisting of $700,000 for the fraud charges
10:25
and $850,000 in punitive damages.
10:33
Dr. Wylatt was also punished by the medical
10:35
board, not only for the real estate
10:37
fraud, but it had also been revealed
10:39
that he was ordering his staff to create fake
10:41
medical records to obtain Xanax
10:43
for his wife, who was supposedly
10:45
dead at the time. As lab director
10:48
at Community Regional Medical Center, he had
10:50
technicians create fake patients so
10:53
he could prescribe an average of 510 pills
10:55
a month for more than two years
10:58
until he finally admitted she was alive
11:00
again.
11:02
Unfortunately it would take years for Cheryl
11:04
Skegan and Brian Gortz to see any of
11:06
that settlement money.
11:08
Dr. Michael Wylatt declared bankruptcy.
11:10
He only had about $155,000 in
11:13
assets and his old medical practice
11:15
was fighting for a piece of it to pay for his
11:17
own attorney fees.
11:19
Luckily, or unluckily as
11:22
you'll soon see, Cheryl Skegan
11:24
wasn't desperate for the money because
11:27
in 2011 she settled
11:29
a sexual harassment lawsuit against
11:31
the founder
11:32
of Hooked on Phonics.
11:34
What is Hooked on Phonics? It's
11:37
a program that helps teach children and
11:40
adults how to read by
11:42
teaching the sounds of the letters in the alphabet.
11:45
All the lessons are set to music and that
11:47
makes learning to read simple and
11:49
fun.
11:59
slogan, and
12:02
the easy to remember phone number. Hooked
12:08
on phonics taught reading by associating sounds
12:10
with letters and words, the original
12:12
program consisted of nine packs of flashcards,
12:15
five softcover workbooks, and eight
12:18
20-minute cassette tapes of spoken instruction
12:21
backed by some chill, lo-fi beats.
12:31
The program was
12:33
appropriate for new readers of all ages,
12:36
an estimated 27 million adults in
12:38
the US at the time could not read. One
12:41
of Hooked on Phonics' main appeals was
12:43
that those people could now learn to read at home
12:46
at their own pace without the public embarrassment
12:48
of a classroom setting. Hooked
12:50
on Phonics seemed like a decent enough idea,
12:52
but it wasn't even original.
13:05
Thousands
13:16
of similar products were available then, but
13:19
were usually marketed to school districts
13:21
and teachers. On the other hand, Hooked
13:23
on Phonics was sold directly to the consumer
13:26
via a blitz of television and radio
13:28
advertisements. In 1991,
13:31
Gateway Educational Products, the makers
13:34
of Hooked on Phonics, reportedly spent
13:36
almost $44 million of its total $50
13:39
million in revenue on advertising.
13:42
It became the largest advertiser on network
13:44
radio, sponsoring programs like
13:47
the Rush Limbaw Show, whose audience
13:49
was comprised entirely of alliterates.
13:52
Allegedly.
15:59
He started referring to himself as a true
16:02
Renaissance man, a gourmet
16:04
chef, a historian, an accomplished
16:06
composer. He even referred to himself
16:09
as an author after compiling a book
16:11
of quotes in 1999 that he titled
16:13
The Most Brilliant Thoughts of All
16:16
Time. It contained classic quotes
16:18
from the likes of Shakespeare, Lincoln,
16:20
and Hemingway. Even John Shannon
16:23
snuck in with one of his own, quote, If
16:25
you don't bring Paris with you,
16:27
you won't find it there. Damn,
16:30
that's deep. Now
16:32
let me ask you this. Would
16:34
it surprise you to learn that such a delusionally
16:36
confident Renaissance man like John
16:38
Shanahan could be capable of
16:41
also being a sexual creep?
16:43
I didn't think so. And yes,
16:45
he is, according to Cheryl Skegan, one
16:48
of John's corporate attorneys who sued
16:50
him in 2007.
16:52
During the Muskegan's deposition, the
16:55
first incident happened in 2003 at a Christmas party
16:58
at John Shanahan's house. Cheryl
17:00
said everybody was in the backyard and John,
17:02
her boss, approached her, grabbed
17:04
her left buttock, and said, Hmm, firm,
17:08
must be all that horseback riding.
17:10
Later, Cheryl said she was
17:13
inside on the couch when John Shanahan
17:15
intoxicatedly plopped down on an adjacent
17:17
chair. Don't you want to go away
17:19
with me? He slurred while reaching out
17:21
his hand. Don't you want me to fuck your
17:24
brains out? Isn't that what you want? Tough
17:27
to resist, but Cheryl Skegan managed.
17:30
Besides she was married. John who was
17:32
also married knew that, but didn't care.
17:35
He made that obvious by sending flowers to
17:37
Cheryl's home that she shared with her husband
17:39
and five kids. Skegan
17:42
testified that John Shanahan groped her again
17:44
in 2005 on a business trip. He
17:46
begged her to leave her family and live with him in
17:49
Newport Beach. Cheryl
17:51
Skegan says that John Shanahan would get angry
17:53
when she rebuffed his offers. Must
17:55
be menopause, he would say, or must
17:57
be a lesbian.
17:59
one day without warning, he fired
18:02
her. John Shanahan
18:04
claimed he never said or did any of those
18:06
things, and many of his actions like
18:08
sending flowers to her home had innocent
18:10
explanations. Also
18:12
according to John, he wasn't drunk at that Christmas
18:15
party, he had just started taking prescription
18:17
pain pills that day.
18:20
Despite his proclamations of innocence, John
18:23
Shanahan settled Sheryl Skegan's lawsuit
18:25
pre-trial for $700,000. In addition, he paid his lawyers
18:28
over a million dollars
18:30
in fees. Shanahan filed
18:32
an insurance claim for the settlement amount but
18:35
State Farm refused to pay, noting
18:37
that his homeowners liability policy
18:39
didn't cover sexual battery.
18:43
In 2011, John Shanahan lost his appeal. We
18:46
fail to see how grabbing Skegan's buttock, squeezing
18:49
it, and telling her that its firmness must
18:51
be the result of all her horseback riding could
18:53
have been accidental, wrote a pellet just
18:56
as Eileen Moore.
18:57
Speech is intentional.
19:00
That same year, John Shanahan's soul hooked
19:02
on phonics. By then, sales of the
19:04
program had decreased dramatically since its
19:06
heyday, primarily because of criticism
19:09
from educators about the program's dubious
19:11
claims.
19:12
And let me tell you
19:14
something extraordinary. When
19:16
you learn this tape, you'll be able
19:19
to sound out and read every
19:21
page in book number one. That's
19:23
over 120 pages of words. Can you imagine
19:27
that? Just by learning one 18-minute
19:29
lesson, you'll be on your way to
19:32
becoming a super reader.
19:34
Back in 1991, the
19:36
Dallas Morning News outlined four major
19:39
complaints against hooked on phonics. For
19:42
one, people can't teach themselves to read. Two,
19:45
there's no honest feedback to let them know if they're
19:47
doing something wrong. Three, the
19:49
program ignores critical elements of teaching
19:51
reading. And lastly, it's expensive.
19:55
Around the same time, a panel of reading
19:57
experts also attacked the effectiveness of
19:59
hooked on phonics. They argued that
20:01
reading is words in context, literature
20:04
in content, not merely mimicking
20:06
sounds. There are no picture cues,
20:08
there are no formal studies, instead
20:10
the programs of marriage rely on the testimonials
20:13
of children who, let's face
20:15
it, simply cannot be trusted. As
20:18
instructional design, this really stinks,
20:21
a reading instructor told Newsweek magazine.
20:25
John Shanahan brushed off the criticism, chalking
20:28
it up to an upset establishment education
20:30
industry whose secondary income as tutors
20:32
was being impacted. Sour
20:35
grapes, Shanahan told Newsweek. We
20:37
can teach people to read in 30 days, they
20:39
can't teach them in 12 years. John
20:42
Shanahan's proof was that very few people
20:44
returned the product and asked for a refund.
20:47
However, common sense tells us that one might
20:49
be too embarrassed to admit to failing, a program
20:52
guaranteed to work. That's
20:54
why the Federal Trade Commission began investigating
20:57
the claims Gateway Educational Products
20:59
was making in its advertising for Hooked on
21:01
Phonics. The FTC made it clear
21:03
that they weren't challenging the effectiveness of
21:05
phonics-based reading instruction. They
21:08
only wanted Gateway to substantiate the testimonials
21:11
and provide evidence of the guarantees, such
21:13
as Hooked on Phonics claiming they
21:15
could help people with disabilities learn to read.
21:18
These concerns were first revealed in
21:21
a December 13, 1994 episode of Dateline NBC. It
21:25
was reported that the FTC found that Gateway
21:27
could not support its bold advertising
21:29
claims.
21:29
Gateway called the piece false
21:32
and defamatory and then signed an agreement
21:34
with the FTC the next day, agreeing
21:36
to restrict its advertising claims. John
21:39
Shanahan was not financially penalized,
21:42
nor did he admit to any wrongdoing.
21:46
And we have a follow-up now on a story broadcast
21:48
last night on Dateline NBC. Producers
21:50
of the well-known reading system called Hooked
21:53
on Phonics today reached agreement with the federal
21:55
government to stop misleading advertising
21:58
about what this program can do.
21:59
can deliver. Sales
22:02
of Hooked on Phonics plummeted in response
22:04
to the news. By the end of the year,
22:06
Gateway Educational Products was filing for
22:09
bankruptcy. Just another victim
22:11
of the liberal curriculum. At
22:14
least that's what many letters to the FTC were
22:16
saying. Attacking Hooked on Phonics
22:18
was an attack on homeschooled America. It
22:20
was an attack on Jesus. It was
22:23
an attack on free speech. It
22:25
was an attack on John Shanahan for
22:27
disrupting the establishment. It
22:29
was tyranny.
22:29
Again, in
22:32
reality, the case against Hooked
22:34
on Phonics was about making false claims
22:36
in advertising. But some
22:39
who refuse to live in reality don't
22:41
see it that way. This
22:43
is the sinister nature
22:46
of the United States government. They
22:48
coordinate with the media
22:51
because they control the media. The
22:54
media then ran exposés on
22:56
Hooked on Phonics saying it was a scam. The
22:59
U.S.
22:59
government sued Shanahan
23:02
at the same time. His business collapsed.
23:04
All of his assets were frozen. Out of
23:06
business.
23:06
Gone. Threatened
23:09
jail time. He surrendered.
23:12
Consider this. The Federal Trade Commission
23:15
at that time had not received not
23:17
one. As I understand it, not one
23:20
complaint from somebody who bought Hooked
23:23
on Phonics. There were
23:25
tens of thousands
23:27
of letters on Hooked on Phonics saying,
23:30
thank you, I bought Hooked on Phonics
23:33
and it changed my life. And it changed my child's
23:35
life. Why would the government go after
23:37
somebody who's helping so many people?
23:39
And why would they spread such
23:41
disinformation and ruin
23:43
this man? Well, they bankrupted Sean
23:46
Shanahan and it was sad. A little
23:49
while later that same year, they did the
23:51
same thing to me. That's
23:54
a man named Kevin Trudeau. He
23:56
also made infomercials and he
23:58
was also in an ongoing
23:59
battle with the Federal Trade Commission over
24:02
false advertising claims. But
24:05
unlike John Shanahan and hooked on phonics,
24:08
Kevin Trudeau knew this day would come,
24:10
that he wasn't going to surrender.
24:14
A career salesman becomes a habitual
24:16
offender and it's quest to share information
24:19
they don't want you to know
24:21
on this episode of Swindled.
24:30
Pay to play, taxpayer dollars
24:32
that were wasted, paid tens of millions
24:35
of dollars, billion dollars,
24:39
by falsifying its votes and
24:41
records model for the collapse of the entire system.
24:51
Support
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Well the fact is I did not have
26:13
a good memory most of my life. See
26:15
in 1979 I was an LD child. I
26:18
had a learning speech impediment. I
26:20
was flunking out of high school. I
26:22
was 45 pounds overweight. Had a dead end
26:24
job, a beat up car. Didn't feel good
26:27
about myself. My future did not look
26:29
very bright. Kevin
26:32
Mark Trudeau was a boy scout,
26:34
altar boy, and church organist as
26:37
a child. He cut lawns, delivered
26:39
newspapers, shoveled snow, and set
26:41
pins at a bowling alley.
26:43
Kevin was also the president
26:45
of the Junior Clowns of America and
26:47
a magician who performed at birthday parties
26:50
in nursing homes. Kevin
26:52
was an honor student that played baseball and football
26:54
at St. Mary's High School in Lynn, Massachusetts.
26:57
During his senior year in 1981, he was
27:00
voted most likely to succeed. Kevin
27:03
Trudeau was an accomplished, well-rounded
27:05
kid who was going places when everybody
27:08
could see it. But not if you hear
27:10
him tell the story. Publicly,
27:12
Kevin claims he was out of shape and out of options
27:15
until he sat in the audience for a lecture
27:18
about success given by a former
27:20
body shop mechanic turned real life millionaire.
27:23
After the show, an 18-year-old Kevin
27:25
Trudeau followed the man to a Denny's
27:27
Diner, where millionaires often
27:30
gather in the early morning hours to watch the working
27:32
class throw chairs at each other. Uninvited,
27:35
Kevin sat down in the booth next to the man and
27:37
begged him to share more secrets to success. He
27:40
shared with me that night till 4 o'clock in the morning,
27:43
principles of success. I
27:46
curiously took down notes. The
27:48
most important thing that man taught me that night,
27:51
he said, Kevin, knowledge
27:53
is power. But
27:56
only if you can remember it.
28:15
secure
30:00
credit cards for himself. He charged
30:02
a total of $122,735.68 to the cards. Again, Kevin
30:10
Trudeau pleaded guilty. He said he was desperate
30:12
for assets and was trying to keep the American
30:14
Memory Institute afloat. This
30:17
time, Kevin was sentenced to two years in
30:19
prison. While in custody, he underwent
30:21
a psychiatric evaluation, which found
30:24
quote, no indication of
30:26
organic mental disorder or psychosis.
30:29
He has been driven by a subconscious urge
30:31
to succeed, to the point where he may
30:33
have shown poor judgment. Kevin
30:37
Trudeau's mother, who described her son as a
30:39
literal altar boy in a letter to the judge,
30:41
blamed her son's behavior on the repressed awareness
30:44
of his adoption. A cousin had
30:46
accidentally let the truth slip out in
30:48
front of Kevin before his parents told him. Kevin's
30:51
mother says she saw a quote, big change
30:53
in him from that point on. Success
30:56
was the only thing that mattered. While
30:59
in prison, Kevin Trudeau met a convicted
31:01
cocaine distributor named Jules Leib. After
31:04
their release, the two men formed a partnership
31:06
and started a business in 1993. That
31:09
was called the Trudeau Marketing
31:12
Group.
31:24
The
31:36
Trudeau Marketing Group partnered with a
31:38
company called Nutrition for Life in Houston,
31:41
Texas. Nutrition for Life sold vitamins
31:43
and health supplements, herbal formulas,
31:46
homeopathic remedies. They
31:48
have products for weight management. They have amino
31:51
acid balanced pastas. They have all
31:53
types of vitamins, minerals, herbs.
31:56
They're one of the largest distributors of homeopathic
31:59
and natural heat.
31:59
killing remedies in America. Kevin
32:02
devised a way to sell the products in bulk. The
32:05
Trudeau Marketing Group offered a quote,
32:07
instant executive program with
32:10
nutrition for life. To get
32:12
in, participants were required to buy $1,000 worth
32:15
of products to resell, hopefully,
32:18
and a $35 startup kit, which
32:20
would teach them to be the best salesman they could
32:22
be. But the real money was
32:24
in recruiting others into the program. In
32:27
order to get in, we asked you to buy $1,035 worth
32:31
of product and a distributor kit. Now,
32:34
the
32:34
other thing that we asked you to do is each month
32:37
buy $135 in product. You
32:40
can certainly buy more than that, and you don't have
32:42
to buy product in any month. If you don't, you don't
32:44
get a bonus check that month. And if you don't buy a product for
32:46
two months in a row, you simply get taken
32:48
out of the program, and you lose your downline
32:50
forever. It's optional, but we recommend
32:53
that you get, and you sign up for the order assurance
32:55
program, which means you put down a credit card number.
32:57
And if you forget to buy a product in any given
33:00
month, we automatically charge your
33:02
credit card and send you a gift certificate for $100.
33:06
At least 10 states attorneys general
33:08
filed lawsuits against Kevin Trudeau and
33:10
Nutrition for Life for operating
33:12
an illegal pyramid scheme. Trudeau
33:15
paid $185,000 to settle the charges. The
33:18
Trudeau marketing group was no longer allowed
33:21
to operate.
33:22
So Kevin Trudeau brought back an
33:24
old classic, but in a different form. Trudeau
33:27
dusted off his memory improvement program,
33:30
but this time instead of seminars, he
33:32
would sell it via infomercial, which
33:35
had littered America's late night airwaves, thanks
33:37
to Reagan's deregulation of the TV
33:40
advertising industry. Stay
33:42
tuned, get a pencil and paper, and in
33:44
the next 30 minutes, you'll be able to take a test
33:47
to find out just how good your memory really is, and
33:50
learn to unleash the power of your own
33:52
mega memory. Featuring Kevin Trudeau,
33:55
author, lecturer, and America's foremost
33:57
memory
33:57
expert. Kevin is so sure
33:59
that this...
36:02
The Mega Memory course wasn't the only
36:04
product Kevin Trudeau was shilling at
36:06
the time. There were at least half a dozen.
36:09
Each had their own infomercial that followed
36:11
a similar format. Kevin
36:13
Trudeau would play talk show host and
36:15
conduct a scripted interview with a so-called
36:18
expert on a subject. It was usually
36:20
the founder of whatever product they were selling.
36:23
For example, Kevin Trudeau interviewed
36:25
a self-proclaimed beauty expert named
36:28
Jacqueline Sable about her product,
36:30
the Sable Hair Farming System, which
36:33
promised to quote, finally end
36:35
hair loss in the human race. One
36:38
can see how that turned out just by looking
36:40
in the mirror.
36:41
What I want to share with you now is a simple
36:43
step-by-step procedure that you will apply anytime
36:46
you have an addictive urge. Now the first thing I
36:48
want you to understand is when do you apply
36:50
this particular technique. This technique
36:53
is fast, effective, and it works. The reason
36:55
it works is it gets at the energy field level.
36:58
Dr. Callahan's techniques now are called Thought
37:00
Field Therapy because we deal with
37:02
the thought field.
37:04
There was also Dr. Callahan's addiction
37:07
breaking system, which Kevin Trudeau
37:09
tells the audience is a series of gestures
37:11
like tapping on the chest that can eliminate
37:14
every addictive urge. This
37:16
Dr. Callahan fellow reportedly discovered
37:19
it while he was studying quantum
37:21
physics. Don't be
37:23
left behind. Unlock your natural
37:25
ability to quadruple your reading speed.
37:27
Call the number on your screen and order mega reading.
37:30
It really works. Not available in stores.
37:32
Money back if you aren't astounded. Call now.
37:34
I highly endorse and recommend
37:36
this program how it is the world's fastest reader.
37:40
Kevin also pitched Howard Berg's
37:43
mega reading home study program, which
37:45
could increase reading speed and comprehension
37:47
by as much as 10 times. I
37:50
have a letter here from a girl who has brain
37:52
damage. Howard Berg says in the interview, she
37:55
was in a car accident and half her brain
37:57
stopped functioning. It was electrically dead.
37:59
Yet, even that woman
38:02
increased her reading speed to 600 words
38:04
per minute after using his program.
38:08
In 1998, the Federal Trade Commission
38:10
asked for proof. They asked Kevin
38:13
Trudeau to substantiate the claims for all
38:15
of the products he was selling on TV, and
38:17
he couldn't do it. So the FTC
38:19
fined Kevin Trudeau $500,000, and he
38:22
agreed not to make any more misrepresentations
38:24
about the benefits or performance of any
38:26
product without, quote, competent
38:29
and reliable evidence of his claims.
38:34
Less than three years later, Kevin Trudeau
38:36
was back on TV. This time he
38:38
was starring in infomercials selling a non-surgical
38:40
facelift called Firmalift. There
38:43
was another product called Biotape, which
38:45
were strips of, quote, space-age mylar
38:47
that connected broken circuits in the body to
38:50
provide permanent pain relief. And
38:52
then there was also Corals Calcium, which
38:55
Trudeau promoted during a scripted interview
38:57
with Dr. Robert Barefoot, who
38:59
was neither a medical doctor nor a
39:01
PhD. But no
39:04
one seems to know that a small amount
39:06
of vitamin D can cure cancer. What
39:09
about those women with breast cancer? They're out there on all
39:11
their marches and all this. 15,000 units
39:15
could solve their problem.
39:16
And cure other diseases as
39:18
well. Oh, yes. You
39:20
know that black guy, I'm trying to
39:22
remember his name on television. He
39:25
has MS. Oh,
39:26
I'm Montel Williams. Yes, that's the guy. Well,
39:30
I have all kinds of letters
39:32
from people who had terminal
39:34
MS, and they're all cured today. Montel
39:37
Williams doesn't have to suffer. He's
39:39
suffering through ignorance, and that's why reading
39:41
these books are so important.
39:45
During the infomercial, Bob Barefoot claims
39:47
that Corals Calcium is an effective
39:49
treatment for cancer, heart disease,
39:51
multiple sclerosis, and many other diseases.
39:54
He estimates that all conditions could be reduced
39:56
by 90% within three years if
39:59
people read his book. book.
40:01
The Federal Trade Commission wasn't convinced. In
40:04
June 2003, the agency alleged that
40:06
Kevin Trudeau violated their agreement
40:09
from 1998 about misrepresenting
40:11
benefits without sufficient evidence. The
40:14
FTC entered into a preliminary injunction
40:17
that prohibited Trudeau from continuing to make
40:19
claims about corals calcium and biotape.
40:22
Kevin violated that preliminary injunction
40:24
less than a year later by mass mailing
40:26
an advertisement for corals calcium and
40:28
producing another infomercial. In 2004,
40:32
Kevin Trudeau was found in contempt of court
40:34
for his transgressions. As part
40:36
of the 2004 final order, the
40:39
salesman was to cease all marketing for
40:41
corals calcium. He was forced to turn
40:43
over a vacation home and a Mercedes Benz
40:46
in addition to $2 million in cash.
40:49
But most importantly, Kevin Trudeau
40:51
was quote, permanently enjoined
40:53
and restrained from producing, disseminating,
40:56
or making any representation in an infomercial
40:59
aired or played on any television or radio
41:01
media. In other words, Kevin
41:04
Trudeau was banned from promoting products
41:06
on TV or radio. A
41:09
spokesperson for the FTC's Bureau
41:11
of Consumer Protection stated quote, this
41:14
ban is meant to shut down an infomercial
41:17
empire that has misled American consumers
41:19
for years. Less
41:21
than a year later, Kevin Trudeau
41:24
was back on TV.
41:30
Tackle your New Year's evolutions
41:32
with vitamins and supplements from Ali
41:34
because this year pressure filled resolutions
41:37
are out and evolutions are in. Sure,
41:40
lofty goals are great, but little steps count
41:42
too. One good night's sleep, one feel
41:44
good choice. Bite size goals
41:47
lead to big wins. Ali
41:49
supplements for your New Year's evolution. Find
41:52
your new wellness go to's at Ali.com. These
41:55
statements have not been evaluated by the Food and Drug Administration.
41:57
This product is intended to diagnose, treat, cure or prevent
41:59
any disease.
42:01
Now, no health training, not
42:03
a doctor. I'm a journalist, I'm a medical researcher,
42:06
and for 25 years I traveled
42:08
to over 60 countries, over 5 million
42:11
miles, and I interviewed over 5,000 medical
42:14
doctors all around the world who are curing
42:17
people every single day of virtually every disease
42:19
like cancer, diabetes, high
42:21
blood pressure, herpes, acid
42:24
reflux, heart disease, curing
42:26
these diseases without drugs and
42:28
surgery. And that's why I wrote the book, Natural
42:31
Cures They Don't Want You to Know About
42:33
because it describes the cures
42:35
that are being used all around the world and
42:38
why the drug companies and even
42:40
the U.S. government try to hold that information back
42:42
from the American public.
42:44
In the summer of 2005, an infomercial
42:47
for a book about natural health treatments was
42:49
running on a loop in the living rooms of insomniacs
42:52
across the country.
42:54
The infomercial starred Kevin Trudeau, the
42:56
author of the book, which was called Natural
42:59
Cures They Don't Want You to
43:01
Know About. Trudeau
43:03
was not violating the terms of the
43:05
FTC's 2004 final order which banned
43:08
him from selling products on TV because
43:11
Trudeau was not selling a product on
43:13
TV, he was selling a book that,
43:15
according to the FTC's Mirror Image Doctrine,
43:18
was considered protected free speech.
43:22
Kevin Trudeau had found a loophole that allowed
43:24
him to continue his career as a TV
43:26
pitchman legally. He wasn't making
43:29
claims on the airwaves, he was quoting
43:31
claims from a book on the airwaves. Totally
43:34
different, totally legal. The
43:36
FTC reluctantly agreed and
43:38
approved Trudeau's new infomercial. He
43:41
spent a million dollars a week on airtime.
43:44
And it paid off. In September 2005, Kevin
43:48
Trudeau's Natural Cures They Don't Want
43:50
You to Know About
43:51
was the New York Times number one best-selling
43:53
nonfiction book in the United States for 26
43:56
weeks in a row.
43:59
book in America it beat Harry Potter
44:02
and that's never been done in history especially
44:04
it's a nonfiction book.
44:06
Trudeau's self-published book was 600 pages
44:09
long and poorly written.
44:11
It claimed to contain information deliberately
44:13
hidden from the public by the FTC,
44:16
the FDA, and food and drug companies.
44:18
Okay I'm intrigued. Unfortunately
44:22
there was no bibliography or references
44:24
included. There are
44:27
non-patentable, inexpensive,
44:29
all-natural ways to cure
44:32
arthritis.
44:33
Diabetes. Herpes.
44:35
Herpes is curable. It is 100%
44:38
curable. People don't have to have breakouts
44:41
ever again. Acid reflux
44:43
is curable. Cancer
44:46
is curable. So these natural
44:49
remedies are suppressed in America
44:51
because the drug companies which control
44:53
and own the media and unfortunately
44:56
control the FDA and the FTC don't
44:58
want people to know about it because it could adversely
45:01
affect their properties. Get the number one New
45:03
York Times bestselling book Natural
45:05
Cures they don't want you to know about. Over 10
45:08
million
45:08
people have already benefited from this life-changing
45:10
information. Stop being a slave
45:13
to the drug companies. Wow
45:16
the infomercial claims that over 10 million people
45:19
have benefited from Kevin Trudeau's book. Let's
45:22
hear from some of them. Before
45:24
I read the book I was suffering
45:26
horribly from multiple sclerosis.
45:27
My acid reflux was really bad where I couldn't
45:30
even sleep at night. It's been just
45:32
over seven years now since I read that book
45:35
and I have never been sick. There are so many people that'll
45:37
say oh chronic fatigue can't be cured and
45:39
it's just not true because I'm
45:41
living proof. I used to see my doctor once
45:43
a month I seen him once in two years. I wound
45:45
up actually losing 54 pounds. The symptoms
45:48
are completely completely gone.
45:51
The pain virtually went away overnight.
45:54
The results sounded pretty impressive you
45:56
must admit
45:58
but if you were to pick up the phone in order
45:59
natural cures they don't want you to
46:02
know about. You would find that the book is actually
46:04
filled to the brim with nothing but completely
46:06
unsubstantiated claims.
46:08
For instance, Kevin Trudeau recommends
46:11
curing arthritis by removing
46:13
all dental metal from your mouth. He
46:15
claims sunscreen, not sunlight, causes
46:18
skin cancer. And he urges everybody
46:20
to stop taking all prescription and non-prescription
46:23
drugs. And of course, no vaccines
46:26
and no doctors. Also,
46:28
if you're depressed, Trudeau recommends you
46:31
read Dianetics by L. Ron Hubbard
46:33
and become a Scientologist. What
46:36
else? Oh yeah, Kevin recommends
46:38
wearing white clothes despite being dressed
46:40
in all black on the book's cover. He
46:42
writes that the color white brings more positive
46:44
energy into your energetic field and
46:47
he recommends jumping on a trampoline sometimes.
46:50
In the book, Trudeau also claims that a professor
46:53
at the University of Calgary developed
46:55
a natural cure for diabetes but the
46:58
pharmaceutical companies pressured the school into
47:00
quashing the data. The University
47:02
of Calgary told ABC News that there had been no
47:04
human studies conducted at the school in the past 20
47:07
years on herbal remedies for diabetes.
47:10
And the school sent Trudeau a cease-and-desist
47:12
letter. The University of Calgary
47:14
did a massive cover-up and denied
47:17
that they produced the product and they did any
47:19
research on the product. They lied.
47:22
They did a massive cover-up. I reported
47:26
that in my book and I reported
47:28
that
47:29
in news outlets around the world. I
47:31
reported that the gentleman who was
47:33
marketing this, Dr. Yung-Su Kim,
47:36
was offered over ten million dollars to take the product
47:38
off the market because if people use it they
47:40
would cure their diabetes and the companies
47:42
that sell diabetes supplies would
47:45
lose money. In
47:48
chapter six of Natural Cures They Don't Want You to
47:50
Know About, Kevin Trudeau teaches us how
47:52
to never get sick again.
47:54
Drink eight glasses of water. Stop smoking.
47:56
Walk daily. Stay away from microwaves.
47:59
Sleep on the floor.
49:59
Someone had removed the lug nuts from his car
50:02
wheels. Even more terrifying,
50:04
he told the magazine that he was woken up at 3am
50:06
one morning and three men were standing over
50:08
him. Shut your mouth, they instructed.
50:11
It was a message from the boss. Kevin
50:14
Trudeau promoted the book even harder after
50:16
that.
50:17
At the end of 2005, the FTC
50:20
had not acted but the New York State
50:22
Consumer Protection Board issued a public warning
50:24
about Kevin Trudeau's natural cures. This
50:27
is not a matter of free speech as Mr. Trudeau
50:30
claims. The board's chairwoman Teresa
50:32
Santiago told the Associated Press,
50:35
If you advertise the contents of a book, it
50:37
had better contain what has been promised. When
50:40
you are doing an infomercial and you say you
50:42
have the cure for diabetes and you go
50:44
to the book and there's no cure for diabetes,
50:47
that's an issue. In
50:49
response, Kevin Trudeau filed a lawsuit
50:51
against the New York Consumer Protection Board for
50:54
violating his First Amendment rights. The
50:56
board had been contacting television stations
50:58
in New York, urging them to refrain from
51:01
giving Trudeau airtime. Kevin
51:03
Trudeau won a preliminary injunction
51:05
and the Consumer Protection Board had to cease the
51:08
notifications.
51:10
As if 2005 wasn't busy enough
51:12
for the Kev man, he also founded
51:15
the International Pool Tour that year. He
51:17
planned to transform billiards into a major
51:19
league sport, which shockingly
51:21
never happened. The tour ran out
51:23
of money within a few years. Trudeau
51:26
reportedly sank $13 million into
51:28
the failed venture.
51:29
That's okay because
51:31
he had more natural cures.
51:33
The reason that natural cures are so important.
51:36
All drugs, prescription and non-prescription,
51:39
have side effects. Am I
51:41
saying that? No. Who says
51:44
that? The drug companies themselves. If you
51:46
read it, if you read an ad
51:48
for a drug in Time magazine, there's
51:51
three pages of side effects
51:53
and thousands of people every year are in wheelchairs
51:56
because they did what their doctor said. Took
51:59
a drug.
52:00
In 2006, Kevin Trudeau
52:02
published More Natural Cures They Don't
52:05
Want You to Know About. It contains
52:07
similar pseudoscience as the first. Animals
52:10
never get sick in the wild. Disease
52:12
is caused by an imbalance of energy, things
52:14
like that.
52:15
But what makes more natural cures exciting is
52:18
that Kevin Trudeau gives us a peek behind the curtain
52:21
from where he has obtained this incredible knowledge.
52:24
Yeah, I know, Trudeau used to say he traveled over 5 million
52:26
miles to talk to a bunch of medical experts,
52:29
blah blah blah. But that's only
52:31
half the story. Here's the truth.
52:33
Kevin Trudeau says he got his insider health
52:35
information from a secret
52:38
society. When
52:40
I was 15 years old, I got exposed
52:42
to an organization called The Brotherhood. And
52:44
I went on to generate a very large,
52:47
successful empire all over the world in business
52:49
and did some pretty amazing things. Trudeau
52:52
says being in The Brotherhood has given
52:55
him access to the inner circles of the rich and
52:57
powerful. Politicians, celebrities,
52:59
musicians, scientists, they recruited
53:02
him because he was talented, Kevin says.
53:03
They wanted to use his abilities
53:05
for quote, increasing their own billions
53:08
in their own power, control and influence
53:10
over the masses. Kevin
53:12
writes, as a member of the secret
53:14
society, I've sat in private meetings
53:17
with the heads of state from countries around the world.
53:19
I've attended secret international business
53:21
meetings where business leaders, politicians
53:24
and media moguls coerce together
53:26
to create the New World Order with global
53:28
control over individual people everywhere.
53:31
I've been shown and have seen with my own eyes,
53:33
secret government and corporate documents. I've
53:36
heard with my own ears how Big Pharma, the
53:38
food industry and the oil industry are
53:40
working together with governments and media outlets
53:43
around the world.
53:44
I've been in over 60 countries, yet there
53:46
are no stamps or evidence in any of my passports.
53:49
I've been to Area 51 in Nevada. This
53:52
is where much of our technology has been developed.
53:54
Area 51 houses most extraterrestrial
53:57
artifacts, including a working spacecraft.
53:59
dead alien bodies. I've seen
54:02
these things with my own two eyes. As
54:04
a member of this secret society, I
54:06
was used in covert operations
54:09
around the world."
54:12
So yeah, it's
54:13
not a stretch to believe that Kevin Trudeau could have picked
54:15
up a few health tips along the way. Seems
54:18
like he picked up some personal finance strategies
54:20
as well because he also published Debt
54:22
Cures they don't want you to know about the
54:24
same year. Critics pointed out
54:27
that Trudeau's Debt Cures book contained rudimentary
54:30
financial information that was readily available
54:32
everywhere for free, like how to improve
54:34
your credit score. There was nothing revelatory
54:37
about it. The same could be said
54:39
about Kevin Trudeau's Weight Loss Book, published
54:41
in 2007. The Weight Loss
54:44
Cure they don't want you to know about
54:46
claimed to be the quote, simplest and
54:48
most effective way to lose weight on planet
54:51
earth and has been hidden from the public,
54:53
according to the accompanying infomercial.
54:56
The methods in the book have been used by the rich and famous
54:58
for decades,
55:00
but the food and drug industry suppressed that
55:02
information. The program was so
55:04
easy you could do it from home, no dieting
55:06
or exercise required, and once completed,
55:09
you could eat whatever you want. It really
55:11
was a miracle. That was, according
55:14
to Kevin Trudeau's infomercial
55:15
pitch. In reality,
55:17
the program outlined in the book
55:19
didn't seem so easy. Trudeau's
55:21
four phase weight loss program actually
55:24
required a limit of 500 calories
55:26
a day of nothing but organic foods with
55:28
chorocalcium supplementation,
55:30
a daily hour long walk, 15 colonics
55:34
in the first 30 days
55:35
someone is obsessed, and a daily
55:38
injection of HCG, a
55:40
hormone found in pregnant women. Trudeau
55:43
claimed that combining the hormonal injections
55:45
with these strict dietary and caloric intake
55:47
restrictions would reset one's hypothalamus,
55:50
thereby reducing the urge to eat while
55:53
redistributing one's body fat. His
55:55
weight loss program was based on the Simeons
55:57
protocol, also known as the 8th
55:59
CG diet proposed by British
56:02
endocrinologist ATW Simiens
56:04
back in the 1950s, which was debunked as
56:07
nonsense in the 1960s.
56:09
Kevin Trudeau was trying to repopularize
56:11
it.
56:12
The Federal Trade Commission had other plans.
56:15
So they sent me for the weight loss cure book saying this
56:18
book, this infomercial was
56:21
misleading because in the
56:24
infomercial I said that the weight loss cure
56:26
described in the book was easy and
56:28
you could eat virtually anything you want when you were done.
56:31
They said that was a lie. They
56:34
said they read the book and
56:36
they believed that after reading
56:39
the book the weight loss cure was not easy. Therefore
56:42
my claim was a lie and it was
56:44
a violation of the consent decree because I agreed
56:47
I wouldn't misrepresent my books. And
56:49
they said you clearly misrepresented your book
56:52
because you said the weight loss cure was easy. We
56:54
read the book. We don't think it's easy. I
56:57
went to the FTC and said hey did any of you guys
56:59
do the diet? They said no. I
57:01
said well how do you know if it's easy or not?
57:04
Easy is subjective. Even
57:06
though a reasonable person would describe Kevin
57:09
Trudeau's weight loss program as anything but.
57:12
However, Trudeau also claimed there was no
57:14
exercise or dieting required which was
57:16
blatantly untrue. Also, the
57:19
FTC argued, how could the program be
57:21
done at home when it requires daily
57:23
injections of a prescription substance? I'll
57:26
tell you how, Kevin Trudeau told them. It's
57:29
freedom of speech. Actually
57:32
it's false advertising, the FTC ruled
57:34
on November 19th 2007. Kevin
57:37
Trudeau was again found in contempt of court
57:39
for, again, violating the 2004 final
57:42
order for misleading thousands of customers
57:44
about the difficulty of the diet he
57:46
was selling.
57:48
On August 7th 2008,
57:50
Trudeau was fined 5.1 million dollars,
57:53
an estimate of the revenue earned from the book,
57:55
and he was banned from selling anything on TV or
57:57
radio, including books, for three years.
1:00:01
This is Kevin Trudeau in the studio. I'd
1:00:04
like to personally congratulate you to
1:00:06
getting this program your wish is your command
1:00:09
how to manifest your desires. This
1:00:11
is a very special program and you're
1:00:13
not listening to this by accident. This
1:00:16
program, if you listen to the entire
1:00:18
program, can help you
1:00:20
make all of your dreams come true. This
1:00:23
series is a revolutionary breakthrough
1:00:26
to help you become virtually a success
1:00:28
magnet, a money magnet. If
1:00:31
you listen to the entire program, if
1:00:33
you do what I suggest you do on the
1:00:36
program, you virtually can have your own
1:00:38
personal genie, granting
1:00:40
you your every wish. Your
1:00:42
dreams can come true. You
1:00:44
can learn how to manifest your desires.
1:00:47
You can learn how to
1:00:49
make what you want to happen
1:00:52
actually happen in your life. In 2009,
1:00:56
Kevin Trudeau was back with a new product, an
1:00:59
audio cassette program called Your Wish
1:01:01
is Your Command. It was a self-help
1:01:04
guide to success based on the law of
1:01:06
attraction and the power of positive thinking,
1:01:09
basically
1:01:09
a ripoff of the popular but
1:01:11
equally worthless book, The Secret. When
1:01:14
a person just listens to this seminar,
1:01:17
I'm virtually reprogramming
1:01:19
their brain. We now
1:01:21
know scientifically that the brain transmits
1:01:24
and receives frequency, Kevin says.
1:01:26
We also know that those frequencies affect physical
1:01:28
matter in the universe at the quantum level.
1:01:31
Here's proof. That's why the guy
1:01:33
who came to the event and he helps, when
1:01:36
I recorded this, he wanted a relationship.
1:01:39
And that night, in less than 24 hours,
1:01:42
he had met the woman of his dreams. One guy
1:01:45
missed his flight on the way
1:01:47
to the airport in Zurich. And
1:01:49
then while waiting for his next flight, bumped into
1:01:51
somebody, they started a conversation, and
1:01:54
now they're business partners in a multi-million dollar
1:01:56
business deal.
1:01:59
No, thousands of stories just
1:02:02
like those. You can have anything you want
1:02:04
in life he assures. All you have to
1:02:06
do is just think about it really
1:02:08
hard. And if that doesn't work,
1:02:10
Kevin wrote another book the following year that might
1:02:12
be of interest. It was called Free Money
1:02:15
They Don't Want You to Know About. Discover
1:02:18
the methods in Kevin's book that these real
1:02:20
people use to make a fortune before
1:02:23
the government possibly bans the book and
1:02:25
freezes the latest free money program.
1:02:28
Kevin's free money secrets
1:02:29
include government grants and unclaimed property.
1:02:33
There's usually a state website set up for the latter
1:02:35
where you can search your name and see if there's any money
1:02:37
that's rightfully yours that you have not claimed.
1:02:40
Usually like a final paycheck you never picked up
1:02:42
or funds sent after you changed addresses.
1:02:45
You have pretty basic stuff. You're
1:02:48
a genius, Kevin.
1:02:49
I made over a million dollars
1:02:51
using Kevin's method. I made almost
1:02:54
two million dollars. Cash money.
1:02:57
Maybe you ought to check those websites. And
1:03:00
remember,
1:03:00
just think positively.
1:03:03
Kevin Trudeau should take his own advice because
1:03:05
around the time he was preaching the power of positivity,
1:03:08
he
1:03:08
started hosting an internet radio
1:03:10
show which was mostly angry and
1:03:13
negative. Well, you know, there
1:03:15
was a dad
1:03:17
and he was struggling and
1:03:19
his wife and he had three kids and he decided
1:03:21
to do a hoax and
1:03:24
send a balloon up in the air and go on television
1:03:27
and say, my six-year-old is in the balloon. And
1:03:29
he did this because he wanted to take care
1:03:31
of his kids. He wanted to become a celebrity
1:03:34
and he thought doing this would get him money.
1:03:36
He could write a book. He would go on television.
1:03:39
He'd become a celebrity. He
1:03:41
broke the law to take care of his kids. We're
1:03:44
outraged at this
1:03:45
person. Why
1:03:48
aren't we outraged at the illegal immigrants? Unsurprisingly,
1:03:53
Kevin Trudeau had built up a substantial
1:03:55
cult-like following.
1:03:57
During the broadcast, he appealed to the audience
1:03:59
as paranoid. fear, and pseudo-intellectual
1:04:02
superiority while selling them bullshit,
1:04:05
don't we all? But at the same time, Kevin
1:04:07
was still claiming innocence and trying to appeal
1:04:09
his $37 million fine. Jesus
1:04:13
Christ had to be crucified. Gandhi
1:04:18
had to be in prison. Nelson Mandela had
1:04:20
to go to prison. Cesar Chavez
1:04:22
was beaten.
1:04:23
Martin Luther King was
1:04:25
assassinated. So
1:04:28
sometimes bad things
1:04:30
happen to good people.
1:04:32
But when you believe in what you're doing, like I believe
1:04:34
in what I'm doing, I can handle those
1:04:36
challenges that lie before me. But
1:04:39
he couldn't do it alone. Even a great
1:04:42
man like Kevin Trudeau needed help
1:04:44
sometimes. I need your help.
1:04:46
I need you to write a comment. I need
1:04:48
you to write a comment and email it. Email
1:04:50
it to me and then email it
1:04:52
to the judge, Judge Gettleman, we're going to put
1:04:55
his email address and email it to the FTC. When
1:04:57
you basically say, look, I got the weight loss cure,
1:05:00
or Kevin Trudeau's a great guy, or I
1:05:02
love what he's doing, leave him alone.
1:05:05
On February 10, 2010, Kevin
1:05:08
Trudeau urged his audience to email
1:05:10
Judge Robert Gettleman letters of support
1:05:12
about how his products had positively affected
1:05:15
their lives. He listed the judge's
1:05:17
email address on his website and a message
1:05:19
titled,
1:05:20
Kevin needs your voice. Hundreds
1:05:23
of emails flooded Judge Gettleman's inbox. Maybe
1:05:26
they were angry or vaguely threatening.
1:05:29
Judge Gettleman was pissed.
1:05:30
The next day, February 11, 2010, the
1:05:34
judge ordered Kevin Trudeau into court with three
1:05:36
hours notice. Gettleman
1:05:38
called the email blast the deliberate attempt to
1:05:40
harass, intimidate, and influence
1:05:42
him. Just got another one, Gettleman
1:05:45
complained in court. He said his blackberry
1:05:47
was clogged with email and completely frozen.
1:05:50
Every time you hear that little bell.
1:05:54
Obviously this is the first amendment issue
1:05:57
and I certainly thought that I was
1:05:59
excellent
1:05:59
I'm exercising my personal rights.
1:06:18
I'm
1:06:30
not even Trudeau's name on them.
1:06:56
Stop
1:07:00
the presses! It's
1:07:02
the story of the
1:07:04
year!
1:07:07
Again,
1:07:22
I can't comment on the proceedings until
1:07:24
they're done. My attorneys told me not to comment, but I do
1:07:26
want to give you the facts. The facts are this.
1:07:29
Last Wednesday, I went on the air
1:07:31
and asked you to write
1:07:33
the judge and write the Federal Trade Commission
1:07:36
and tell the judge and tell the Federal Trade Commission
1:07:38
that you liked my books and you liked my
1:07:41
writings and you didn't think you were misled in any of my
1:07:43
ads. That
1:07:46
was wrong and do not, under any circumstances,
1:07:49
email the judge or write the judge. Well,
1:07:52
it appears that hundreds of you wrote
1:07:55
the judge.
1:07:58
On May 20th, 2010, the
1:07:59
The 7th Circuit Court of Appeals granted
1:08:02
Kevin Trudeau's motion and dismissed the
1:08:05
most current contempt citation. He
1:08:07
would not have to spend the 30 days in jail.
1:08:10
However, a year and a half later, on
1:08:12
November 29, 2011, the court again upheld the $37.6 million
1:08:18
fine for violating the 2004 final order.
1:08:22
Kevin Trudeau would have to pay it. But
1:08:24
how?
1:08:25
Well, in May, I'm
1:08:28
going to be revealing in a two-hour
1:08:30
webinar exactly
1:08:34
what is going to happen December 21, 2012.
1:08:38
This is information you and your family need to
1:08:40
know. It is information
1:08:43
that you categorically, 100%, need to know. You
1:08:49
need to know this. This
1:08:52
is vital. It is valuable. Now,
1:08:55
who am I going to reveal it to? I'm
1:08:57
going to be revealing it to members of my
1:08:59
club, the Global Information
1:09:02
Network.
1:09:08
The Global Information Network, or
1:09:10
JIN, as its members refer to it, is
1:09:12
an international anonymous council
1:09:15
created by Kevin Trudeau and 29 other
1:09:17
heavy hitters. This
1:09:19
group of people includes several
1:09:22
members of major royal
1:09:25
families. This group includes
1:09:28
members of the Bildenburg Club. This
1:09:30
group includes members of Bohemian
1:09:33
Grove, Skull and Bones,
1:09:35
Trilateral Commission. These
1:09:38
people
1:09:38
are billionaires, multi-billionaires.
1:09:40
They control major industries around the
1:09:42
world.
1:09:44
The purpose of their little club is
1:09:46
to give ordinary people access to super-secret
1:09:49
insider and forbidden knowledge to which
1:09:51
only the wealthy elite are privy. This
1:09:54
is Ed Foreman, a former congressman
1:09:56
from Texas who was a card-carrying
1:09:58
JIN member.
1:09:59
It's like an institution
1:10:02
that gives you an
1:10:05
education in business and
1:10:07
success in accomplishing
1:10:10
things in life. Many universities
1:10:12
will give you a degree and teach
1:10:15
you physics or
1:10:16
algebra or a
1:10:19
variety of things, but the thing
1:10:21
about the Global Information Network
1:10:24
is it talks to you about business and you associate
1:10:27
with business people.
1:10:29
As a member of the Global Information Network,
1:10:32
you will learn how to invest in real estate.
1:10:34
You'll learn how to get a second passport, how
1:10:37
to open an offshore bank account, how to
1:10:39
live abroad, and of course how to make money
1:10:41
among a list of other things. This
1:10:44
is what I believe to be one
1:10:47
of the greatest money-making opportunities
1:10:49
that you may see in your lifetime.
1:10:52
Lucky for you, this exclusive club accepts
1:10:55
everybody for a fee of course. New
1:10:58
members must pay the Global Information Network $1,500
1:11:00
up front and then $150 every month
1:11:04
after. Here's something else you need to know.
1:11:07
There are levels to this shit. 10 levels
1:11:10
and you can buy your way up the ladder. This
1:11:12
woman told us she paid $25,000 for the brand new level 6.
1:11:17
And
1:11:21
this man is a member of the club's prestigious
1:11:23
inner circle. How much do you have to pay to be in the
1:11:25
inner circle? $75,000 which
1:11:30
he says gets this exclusive CD
1:11:32
set along with a cut of the club's revenue.
1:11:35
While it's not paying off well yet, he's
1:11:37
confident it was a good investment.
1:11:40
That's another thing. Not only will you learn
1:11:42
some top secret information, you
1:11:44
can make money while doing it without selling
1:11:47
any stupid products. All you have to
1:11:49
do is get other people to join the Global Information
1:11:51
Network and you'll get a cut of
1:11:54
whoever you signed up signs up and so
1:11:57
on.
1:11:58
Plus you'll get to go to the retreats.
1:12:00
At its peak,
1:12:03
the Global
1:12:07
Information
1:12:08
Network
1:12:12
had more
1:12:15
than
1:12:28
30,000 members,
1:12:31
some of which eventually wised up and reported
1:12:34
gin to the FTC with allegations
1:12:36
that the club was nothing more than a pyramid scheme.
1:12:39
Kevin Trudeau's Global Information Network had
1:12:42
collected over $60 million in gross
1:12:44
revenue by then. Guess
1:12:46
how much he paid towards his $37.6 million
1:12:49
fine? $0, that's
1:12:51
correct. Five years had passed since it
1:12:53
was levied. Judge Robert Gettleman's patience
1:12:56
was wearing thin. In September 2013,
1:13:00
Kevin Trudeau was held in contempt of court for not
1:13:02
paying that fine. The court had evidence
1:13:04
that since 2010, Trudeau
1:13:06
had spent $12 million on first class
1:13:09
airfare, bought $12,000 cufflinks and $300
1:13:12
haircuts. He still drove a Bentley,
1:13:15
lived in a mansion near Chicago, paid $15,000 a
1:13:18
month for a vacation home in California,
1:13:21
employed two personal chefs and a butler,
1:13:23
but claimed to be dead broke.
1:13:25
Kevin Trudeau had filed for bankruptcy. He
1:13:28
and his third 26-year-old Ukrainian
1:13:30
wife were effectively homeless, he said.
1:13:33
But the FTC was convinced he was hiding millions.
1:13:36
They had emails in which Trudeau discussed his shipping
1:13:38
gold bars out of the country.
1:13:40
Trudeau said he owned nothing and was willing
1:13:42
to be waterboarded to prove he had nothing to
1:13:45
hide.
1:13:59
I can't pay 37.6 million
1:14:02
dollars. I don't have it sitting there. Judge
1:14:06
Gettelman appointed a receiver to identify
1:14:08
and catalog Trudeau's assets and holdings.
1:14:11
Kevin Trudeau did not play along. A
1:14:13
month later, Gettelman again found Trudeau
1:14:15
in contempt of court for not cooperating with
1:14:18
the receiver's investigation. This
1:14:20
time, it was criminal. Tyranny
1:14:23
in America, fascism in America. But
1:14:26
the good news is there are some people like
1:14:28
myself and many others who are willing
1:14:29
to fight for what we believe
1:14:32
in and express our First Amendment constitutional
1:14:34
rights. As you hear this
1:14:36
broadcast, there's a good chance that I will be in jail.
1:14:42
Kevin Trudeau's trial lasted a week
1:14:45
in November 2013. It
1:14:47
included all of the familiar arguments.
1:14:49
The U.S. attorneys called Trudeau a, quote, habitual
1:14:52
liar and fraudster who had repeatedly
1:14:54
ignored the previous court order by making misrepresentations
1:14:57
in advertising. The defense
1:15:00
attorneys argued that Kevin Trudeau did not willfully
1:15:02
violate the court order.
1:15:03
Any statements he made in the infomercials were carefully
1:15:06
couched as opinions and thus were constitutionally
1:15:09
protected free speech.
1:15:11
The
1:15:11
jury sided with the government.
1:15:13
Kevin Trudeau was found guilty of criminal contempt
1:15:16
for repeated violations of the 2004 final
1:15:19
order, as well as subsequent orders
1:15:21
and plea deals. After the verdict
1:15:23
was read, Kevin Trudeau's supporters
1:15:25
filed out of the courtroom, still
1:15:27
holding their autographed copies of his books
1:15:30
in their hands. Kevin
1:15:32
Trudeau was held without bail until sentencing.
1:15:35
He was considered a flight risk since he had
1:15:37
not disclosed his assets. Four
1:15:39
months later, in March 2014, 50-year-old
1:15:43
Kevin Trudeau appeared
1:15:43
in court, a humbled man. His
1:15:46
trademark black hair was gray and thinning. He
1:15:48
carried a stack of carefully typed notes
1:15:50
that he read to the court.
1:15:53
In the past four months, I've been
1:15:55
stripped of all ego, defiance,
1:15:57
arrogance, and pride.
1:15:59
I am thankful. If I ever
1:16:02
write a book again, if I ever do another
1:16:04
infomercial again, I promise no
1:16:06
embellishment, no puffery, and
1:16:09
absolutely no lies. I
1:16:11
know going forward, I will be a better
1:16:13
person." Trudeau
1:16:15
said his four months in jail were awful. He
1:16:18
wouldn't wish incarceration on anyone, but
1:16:21
it was also quote, one of the best, most positive
1:16:23
things in my life. He was rehabilitated
1:16:26
with a new outlook on life. So
1:16:28
he begged the judge,
1:16:29
there's no need for more time.
1:16:33
Judge Ronald Guzman, who replaced Judge
1:16:35
Robert Gettleman after the defense had him
1:16:37
removed, became visibly irritated
1:16:40
listening to Kevin Trudeau. The judge
1:16:42
described him as quote, deceitful
1:16:45
to the core. Just then,
1:16:47
an 80 year old man stood up and yelled, judge,
1:16:50
I am a former US congressman.
1:16:53
Oh shit, it was Ed Foreman from the Global
1:16:55
Information Network. The judge ordered
1:16:57
Ed to sit down and shut up and he did,
1:17:00
but then he made another outburst a few minutes later
1:17:03
and police dragged the limp old man out
1:17:05
of the courtroom and wrote him a citation.
1:17:08
With no further interruptions, Judge Ronald
1:17:10
Guzman handed down the sentencing.
1:17:13
What's funny is that if Judge Robert Gettleman
1:17:15
had handled the case, Trudeau would have
1:17:17
had a bench trial with a six
1:17:19
month sentencing limitation. Instead,
1:17:22
Kevin Trudeau received 10 years.
1:17:25
TV pitch man Kevin Trudeau will
1:17:27
spend the next 10 years behind bars.
1:17:29
At his sentencing, the judge called him an unrepentant
1:17:32
huckster who was deceitful
1:17:35
to the core.
1:17:37
Kevin Trudeau's sentence has been upheld in
1:17:39
subsequent appeals. The government's
1:17:41
quest to recover his assets to pay back his
1:17:43
victims continues. In 2015,
1:17:46
they auctioned off items seized from Trudeau's
1:17:48
home, items that Trudeau called priceless
1:17:51
because quote,
1:17:52
all have my energy infused in them.
1:17:55
There was a grand player piano, a replica
1:17:58
of Catherine the Great's 72-candlemen.
1:17:59
chandelier, a signed print of
1:18:02
Rush Limbaugh, and several copies
1:18:04
of the weight loss cure they don't want you
1:18:06
to know about.
1:18:08
The government also assumed control of the Global
1:18:10
Information Network, whose members were
1:18:12
informed that the club, quote, likely
1:18:15
amounted to an illegal pyramid scheme. Yeah
1:18:18
right, that's exactly what they
1:18:20
would say. But only about 4,000 of
1:18:23
those remain. A few of the most
1:18:25
devoted members are pooling their resources
1:18:27
to buy the club for $200,000. Amazingly,
1:18:32
while Kevin Trudeau was sitting in a federal prison
1:18:35
in Alabama, his infomercials
1:18:37
were still airing on
1:18:38
TV.
1:18:39
Kevin had sold the rights to everything back in 2006 for $121
1:18:41
million. Trudeau
1:18:45
claims he's only received $2 million from
1:18:47
the sale. The government started
1:18:49
collecting the infomercial royalties. By
1:18:53
October 2015, a few million dollars
1:18:55
in assets had been recovered from Kevin Trudeau. Payouts
1:18:58
were sent to hundreds of thousands of people who purchased
1:19:00
his books. The average check was
1:19:02
about $25. Seven
1:19:05
years later, in the spring of 2022, Kevin Trudeau
1:19:08
was released from
1:19:09
prison. He immediately took
1:19:11
a job with the Global Information Network
1:19:14
United. He gives seminars and
1:19:16
provides training and makes up to a million
1:19:18
dollars a year. Kevin Trudeau's
1:19:20
fan club still pays the majority of his bills
1:19:23
though.
1:19:23
In fact, Trudeau paid $1.86 million towards his $37 million
1:19:26
fine with money collected from
1:19:29
his members, some of whom contributed
1:19:32
as much as $50,000 at a time.
1:19:35
But the government knew there was more. His
1:19:37
third, now ex-wife, told them. In
1:19:39
January 2023, she handed over documents
1:19:42
to the FTC that Trudeau had kept
1:19:44
at their home in Switzerland.
1:19:46
She also said she had seen him keep gold bars
1:19:48
in a closet. Kevin Trudeau
1:19:50
claimed those gold bars were gifts to his
1:19:52
wife
1:19:53
and is adamant that he has no assets in his
1:19:55
name. Quote,
1:19:57
I want to pay this debt. I want
1:19:59
to get this behind.
1:19:59
me. I want to live a normal life
1:20:02
and not have to walk on eggshells.
1:20:05
Walking on eggshells. Huh.
1:20:08
I wonder what that cures.
1:20:13
Swindled is written, researched, produced,
1:20:16
and hosted by me, a concerned citizen, with
1:20:18
original music by Trevor Howard, aka
1:20:21
the former, aka the hair
1:20:23
farmer. For more information
1:20:25
about Swindled, you can visit swindledpodcast.com
1:20:28
and follow us on Instagram, Facebook, Twitter, and TikTok
1:20:31
at swindledpodcast. Or
1:20:33
you can send us a postcard at pobox6044 austintexas78762,
1:20:39
but please no packages. We do not trust
1:20:41
you. Swindled is a completely
1:20:43
independent
1:20:43
production, which means no network,
1:20:46
no investors, no bosses, no shadowy
1:20:48
moneymen, no contenders, and
1:20:50
we plan to keep it that way, but we need your
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support. Cash Money. Become a valued listener
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Become a valued listener at valuedlistener.com.
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Or if you want to support the show and need something to wear to
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your next meeting with the Brotherhood, consider
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buying something you don't need at swindledpodcast.com
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slash shop. There are t-shirts, patches,
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1:21:27
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in return for your support, you can always simply
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donate using the form on the homepage. Cash
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Money. That's it.
1:21:40
Thanks for listening.
1:21:43
My name is Tala from
1:21:45
Apex, North Carolina. My name is Janae
1:21:47
from Michigan. Hello
1:21:49
Swindled Corporation. My
1:21:51
name is Mariana from New
1:21:53
Jersey. And I'm your
1:21:56
citizen and valued listener.
1:22:01
Remember, read the
1:22:04
labels on stuff, especially
1:22:07
if you eat it.
1:22:08
Have a great
1:22:10
day.
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