How Do They Get Away With This?

44 replies
Hey Warriors,

I've read about a famous late night infomercial guru that has gotten slapped a couple times from the FTC and he's still promoting the same things on TV late at night.

How does he get away with this?

The funny thing here is that these type folks can rake in 10 - 20 million dollars then get slapped with a 1 million dollar fine and told not to do it again for 18 months or whatever. What good is that type of regulation.

How many of you would do the same if you knew you could rake in $10,000,000 then pay a $1,000,000 fine?

Scot
  • Profile picture of the author Rich Mann
    I've seen many of the those infomercial gurus that have actually done some jail time for their activities just to pop up a year or so later with a remix of the same garbage so they can rake in another jackpot of cash.

    The law is applied inversely according to the size of your bank account.

    Rich
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    • Profile picture of the author jcaviani
      Unfortunately, the same seems to apply to some IM gurus (God knows I would never name them even if their names ARE their brands).

      It's funny how many of these guys make their money scamming people and then profess to have found God or are now totally reformed providing nothing but value - uh huh.

      Anyone need some Swedish war bonds?
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    • Profile picture of the author Minisite Nerd
      With the way things work the FTC fines are often chalked up as CODB - Cost of Doing Business.

      Plus with the millions they make, they can afford the best lawyers out there.
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  • Profile picture of the author Scot Standke
    I wonder if a fine is tax deductible

    Scot
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  • Profile picture of the author jcaviani
    ROFL - now that's good, Scot. Some of these guys have more pitches than Sybil had personalities.

    All you have to do these days is publicly apologize to the zealots or thought police like Michael Phelps did and then do what you want. Michael's saying to himself, man, guess I won't be doing bongs in public any more. Damn, that was good weed.

    I guess just changing your name to reverend or father con man is the solution.
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  • Profile picture of the author tom42357
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    • Profile picture of the author jcaviani
      Oh come on, now you ruined a perfectly good thread by actually naming one of the guilty - that's a no no.... spanky, spanky
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    • Profile picture of the author Scot Standke
      Originally Posted by tom42357 View Post

      Kevin Trudeau is the one that comes to mind, he was actually in prison while some of his frauds were still on TV. He is still able to promote books because of his 1st amendment rights, but he is prohibited from doing infomercials now. In his latest court case he was fined $37 million. He should have quit and retired while he had a chance!
      He's actually the guy I was referring to in the OP, but we are not supposed to name names here.

      I saw him on an infomercial again just the other night.

      I wonder if it's him, or if he maybe sold rights to his material and likeness then?

      Scot
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      • Profile picture of the author Black Hat Cat
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        Originally Posted by Scot Standke View Post

        He's actually the guy I was referring to in the OP, but we are not supposed to name names here.


        Scot
        I'm not sure the rule is meant to apply to well-known public figures that have been convicted of crimes.
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        • Profile picture of the author Kay King
          Wonder if maybe there's a loophole there? Can't produce more informericals - but can perhaps run the ones he already has???

          His situation is odd as I seem to recall the reason he got in trouble in the first place was because he was promoting "cures" for disease in one of his books.

          Maybe I'm just lazy or the greed gene was left out of my DNA - but if I made one infomercial that earned 10 millions bucks, a one shot deal would be enough for me.

          kay
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  • Profile picture of the author hangtimenino
    They rake in money, so they could justify their acts. I would say, they got away with it, because they had money.lol
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  • Profile picture of the author Dennis Gaskill
    Originally Posted by rgenterprise View Post

    I'm sure the networks don't care. As long as they're paying the advertising fee.
    Well that's the truth for sure, the major networks have proven time and time again they have very low or nonexistent ethical standards -- until they get caught, then they fall all over themselves trying to act as shocked as the public is that something like "this" could happen. The networks have no credibility in my house, but most of America still thinks they are honorable and serving the public interest above their own.
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  • Profile picture of the author Thomas Wilkinson
    Another one was something McCorkle who ran a real estate info ponzi scheme
    here in Orlando. He and his wife turned down a plea for five years and asset
    forfeiture and went to trial. They each got 24 years. Last I read they were
    appealing for sentence reduction to the original plea agreement. I met the guy
    at a party once. Made me wanna go right home and take a shower. I'd starve
    before I'd do business that way.

    Tom
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    • Profile picture of the author Nathan Hangen
      Originally Posted by Thomas Wilkinson View Post

      Another one was something McCorkle who ran a real estate info ponzi scheme
      here in Orlando. He and his wife turned down a plea for five years and asset
      forfeiture and went to trial. They each got 24 years. Last I read they were
      appealing for sentence reduction to the original plea agreement. I met the guy
      at a party once. Made me wanna go right home and take a shower. I'd starve
      before I'd do business that way.

      Tom
      William, and he used to show up right before "one tiny classified ad" lapre.
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  • Profile picture of the author Scot Standke
    "All from my tiny little one bedroom apartment!" LOL

    I lived in Arizona back in the 90's and my boss was Don Lapre's boss at a big box store I think before he made his infomercials. I guess he was a hustler back then as well, selling sandwiches in the parking lot during lunch breaks

    He kind of disappeared from late night TV here, or I'm just fortunate enough to have missed him.

    Although some of these guys toe a very fine line, there is still some great things you can learn from watching their productions, they have selling down to a science.

    Scot
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  • Profile picture of the author .silent
    I would definitely do it. I think 9 million dollars will have me set for the rest of my life, so I won't need to have to do it again in 18 months.
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  • Profile picture of the author ElectricChili
    I remember that McCorkle guy. Didn't he have a deal where you find the properties and he put up the cash or something like that?

    Rich
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  • Profile picture of the author oldwarrioruser1
    Why don't you guys wipe up your tears with a Sham Wow!!

    ON SALE NOW!
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    • Profile picture of the author TheRichJerksNet
      Originally Posted by korypearman View Post

      Why don't you guys wipe up your tears with a Sham Wow!!

      ON SALE NOW!
      Yeah and Kaboom does NOT work .. Billy should be ashamed of himself for promoting such a useless product...

      James
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      • Profile picture of the author 4morereferrals
        The Best of the Best is still Goin Wild - as in Girlz Gone Wild - what a racket!

        However; the dude that has em all beat is Michael Millkin ... goes to Club Fed for 10 years and exits with a cool $10B still intact?

        Hell club feds a cake walk to any married guy
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        • Profile picture of the author Scot Standke
          Originally Posted by 4morereferrals View Post

          The Best of the Best is still Goin Wild - as in Girlz Gone Wild - what a racket!

          However; the dude that has em all beat is Michael Millkin ... goes to Club Fed for 10 years and exits with a cool $10B still intact?

          Hell club feds a cake walk to any married guy
          Is he still married to Wonder Woman?

          Ten years in the hoky is a long time though.

          Scot
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      • Profile picture of the author oldwarrioruser1
        Originally Posted by TheRichJerksNet View Post

        Yeah and Kaboom does NOT work .. Billy should be ashamed of himself for promoting such a useless product...

        James
        It doesn't? I never bought one but I thought word on the street was it DID work, lol.

        Oh well!
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        • Profile picture of the author TheRichJerksNet
          Originally Posted by korypearman View Post

          It doesn't? I never bought one but I thought word on the street was it DID work, lol.

          Oh well!
          Nope .. bought the tiolet bowl ones that go in back of the bowl as we got some hard water here.. Well it did nothing... Soooooo like an idiot I said ok I will buy the foaming kaboom and well it did nothing either ..lol

          Now why did I buy the stupid foaming stuff when the other did not work, I dont know maybe it was the freaking screaming billy always does on the commercial. Don't you just hate stupid marketing tactics ..lol

          James
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  • Profile picture of the author Brad Callen
    IMHO, It's just not worth the stress. There's no way on earth I'd go into a business knowing I "might" make $10 mil and then get sued for $1 mil. These guys must not care about their reputation. In IM, reputation is everything.

    Brad
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  • Profile picture of the author TheRichJerksNet
    Hi Scot,
    Don Lapre did not disappear, his board actually voted him out and they took over the company...lol That is when he came up with his all natural pills for miracle health that he "spared no expense" on...

    If I remember his wife filed a divorce shortly after for adultery with his hot side kick cindy...

    Late at night there is another scamming one on DIY Network, can not remember the name right now but it sure was a load of crap on how the internet can make you millions for doing nothing...

    James

    James
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  • Profile picture of the author enterpryzman
    Couple of things to note, if you form a media company and conduct a news style interview....it does NOT constitute an infomercial....POSSIBLY.

    Secondly, I saw someone say they would not enter a business knowing he/she could be sued for a million $$$. I have a very successful brick and morter business that deals with the public and I DO NOTHING WRONG or unethical however, I get sued at least 1 time a year for something crazy, mostly slip-fall on property or something like that. I have been sued more than 10 times and have never lost however, insurance companies often pay to settle anyway for 5 or 10 K.....it is a sad fact that if you are in business ( in America ) you do not need to wory about " if " you will be sued, it is more about when.

    If you are talking about solely fines or criminal charges, NEVER had that and hope never to but, it is possible to be charged and not have done anything which can cost you everything.

    On a side note, I have purchased something from most of those you name above and IMHO, scamming crooks eventually end up paying the price somehow.


    Enterpryzman
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  • Profile picture of the author PiTstop
    Making this kind of money you can afford the fine. that is why we should have more serious repurcussions for people like this. NO ONE wants to do jail time, so give that as well
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  • Profile picture of the author Scot Standke
    The sad reality is that for everyone that knows these folks as they are, there are 100 other dreamers that have yet to be exposed to their schemes and they will continue to pour money into their coffers.

    Scot
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    • Profile picture of the author saintsguy
      I read Kevin Trudeau's book on how to get out of debt. The entire book was generic advice you could easily get online for free after a Google search.The guy is obviously a genius marketer because he's making millions selling worthless information.
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  • Profile picture of the author Tony Vercetti
    Probably they have some highly paid lawyers working to beat or stall the proceedings against them.
    Plus, whats a $1 million fine to you if you made $20 million selling a worthless and overpriced product? Even spending 1 year in jail to make $20 million doesnt sound THAT bad.
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  • Profile picture of the author Thomas Wilkinson
    Vince, the ShamWow guy has another commercial out. Its for a kitchen
    thing that chops vegetables, fruit, nails, glass, blah, blah blah. In the
    middle of the commercial he looks right at the camera and says "You're
    Gonna Love My Nuts". Been laughing for days. Poor old Vince (Shlomi) just got
    booked in Miami-Dade for assaulting a $1,000 hooker. She bit his tongue
    and wouldn't let go. I'm not making this up, its Googleable.

    Tom

    (What is the difference between a $20 hooker and a $1,000 hooker?)




    $980
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    When you hear someone telling you what YOU can't do, they are usually talking about what THEY can't do.
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  • Profile picture of the author oldwarrioruser1
    Yeah funny stuff.

    Watch this:


    That is where I got the whole "soak up your tears"..

    Such a classic video haha
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  • Profile picture of the author Anna Johnson
    The funny thing here is that these type folks can rake in 10 - 20 million dollars then get slapped with a 1 million dollar fine and told not to do it again for 18 months or whatever. What good is that type of regulation.

    How many of you would do the same if you knew you could rake in $10,000,000 then pay a $1,000,000 fine?
    Hi Scot,

    You've pretty much nailed why a lot of corporations do the 'wrong' thing. They weigh up the benefits, costs and risks and then do what they think is best from a commercial perspective. As a lawyer I've come across this twisted, but all too common, logic on numerous occasions. Sad but true.

    So often what is a huge deterrent for the little guy, is a minor expense for a large corporation. Perhaps regulators should consider introducing a 'percentage of assets' as the basis for their fines.

    On the other hand, I don't have a great deal of faith in the regulators to get it right, either!

    Anna
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  • Profile picture of the author Anna Johnson
    Okay, I just had to add this:

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  • Profile picture of the author TelegramSam
    I have seen some companies get totally wiped out and fined far in excess of what they made. It depends what you have been doing that pisses off the authorities.
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  • Profile picture of the author livingwell
    I didnt know this was happening.. wow.. I dont understand how they can get away with it over and over again. Something must be done.
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  • Profile picture of the author OmarNegron
    Yea I see those "guru's" all the time...

    Ok..I will admit I was thinking about buying one of there things once...but then I slapped myself and came back to realization. =-)
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    • Profile picture of the author Robert_Rand
      Don't really know much about Kevin Trudeau but his marketing is excellent. The way he does his infomercials as a "View Style" news format appears to be very effective.

      This guy has making money w/ infomercials down to a science.
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      • Profile picture of the author meckal
        Thanks for sharing with us.

        thanks a lot.
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  • Profile picture of the author billyboy
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