Infamous infomercial pitchman Kevin Trudeau—once referred to as "deceitful to the core" by a federal judge—in March was sent behind bars for 10 years. He failed to pay a $37 million judgment from the Federal Trade Commission for false health and diet claims in his book, "The Weight Loss Cure 'They' Don't Want you to Know About."
But convicted fraudster Trudeau wasn't just an author-pitchman. He had another scheme brewing—while he was in court facing book-related charges, according to investigators. While the FTC case on the book's claims was underway in 2007, Trudeau was in the middle of courting investors for the "Global Information Network," or GIN, investigators say.
GIN essentially was a $110 million pyramid scheme with more than 35,000 members, which the FTC's Jonathan Cohen tells CNBC was "largely for Trudeau's own benefit," and used to conceal millions of dollars in assets from the government.
Investors paid for access to expert financial advice and promises of wealth that never materialized, according to investigators. Now as Trudeau, 51, sits locked up inside Federal Prison Camp, Montgomery in Alabama, investigators are still searching for Trudeau's assets, including the revenue from GIN.
Multiple phone calls and emails to reach Trudeau through his attorneys were not returned.