A court order issued by U.S. District Judge Susan Dlott will permit the Federal Trade Commission to enforce subpoenas that seek access to bank accounts held by Kevin Trudeau, his wife Natilya Babenko and Global Information Network. Trudeau reportedly made more than 32,000 broadcasts for The Weight Loss Cure, a book that the government claims was snake oil salesmanship. It now contends Global Information Network, which is based on the island nation Nevis-St. Kitts , might have parked cash in accounts with Fifth Third Bancorp, which has its corporate headquarters in Cincinnati.
The FTC says it wants $37.5 million from Trudeau to compensate consumers of another diet book he authored. It was a best seller called Natural Cures “They” Don’t Want You Know About . Trudeau says he doesn’t have the money to pay the fine and court documents describe him as being hounded by the government. In Cincinnati federal court, Global Information Network, which goes by the acronym GIN, contends its assets should not be targeted by the subpoena because Trudeau “is not, and never has been, an owner, manager, officer or director of GIN.” But the judge said the bank records were “relevant to determining whether Trudeau has used GIN to conceal his assets.”
The FTC said there is evidence showing that the offshore company has significant financial ties with Trudeau and his wife. It cited emails and money transfers, including $261,000 in checks from GIN that went into accounts controlled by Trudeau. The government said they were Fifth Third bank accounts.
Trudeau was banned from doing infomercials that made false claims in 2004. He settled charges he misrepresented a product called “Coral Calcium Supreme,” which was based on Japanese coral and could cure cancer, heart disease, high blood pressure, lupus and other illnesses. The FTC called him a “prolific marketer” who specialized in health benefit infomercials. When he settled the case, Trudeau did not admit guilt. “This ban is meant to shut down an infomercial empire that has misled America n consumers for years. Other habitual false advertisers should take a lesson, mend your ways or face serious consequences.”
In her decision, Dlott said the Fifth Third accounts were needed in the government’s quest for the $37.5 million Trudeau owes for the consumer fraud fine: “The FTC has provided sufficient evidence establishing GIN’s bank account records are relevant to its investigation into Trudeau’s undisclosed assets and are sought for good cause.”
