IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

FEDERAL TRADE COMMISSION, )

)

Plaintiff, ) No. 03 C 3904

v. )

) Judge Robert W. Gettleman

KEVIN TRUDEAU, )

)

Defendant. )

ORDER

This matter came before the court for hearing on plaintiff Federal Trade Commission’s

(“FTC”) motion (Doc. 481) to hold defendant Kevin Trudeau (“Trudeau”) in contempt and to

incarcerate him for failure to comply with the court’s order directing him to pay more than $37

million as a remedy for his previous contempt of this court’s orders. For the reasons stated in

open court, the court grants in part the FTC’s motion, finds Trudeau in contempt of the court’s

order of June 2, 2010 (Doc. 372), and orders as follows:

(1) This court has thoroughly reviewed and confirmed the accuracy of the findings of

fact and conclusions of law proposed by the FTC (Doc 713), as well as the

citations to the record therein, and adopts and incorporates Findings II through VI

and Conclusions I through IV. 

(2) (a) On or before noon on July 30, 2013, the FTC is to submit the name and

qualifications of a Receiver (along with a preliminary proposal for compensating

the Receiver) for all of Trudeau’s assets, including all entities, foreign and

domestic, owned or controlled by Trudeau (the “Trudeau Entities”). These

Entities specifically include, but are not limited to, KTRN, WSS, WSU, KT

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Corporation, Ltd., the GIN Entities, the KMT Fiduciary Trust, Sovereign Trust,

and other Trusts established by and for the benefit of Trudeau and the Trudeau

Entities, IPT, Natural Cures Holdings, APC, and NBT Trading.1

 The Receiver

will also serve as a Receiver of any and all personal assets owned or controlled by

Trudeau that are not included in the Trudeau Entities, other than those personal

assets exempted by law. The Receiver shall marshal and hold Trudeau’s assets

for the purpose of paying to the FTC the sum ordered by the court on June 2,

2010. 

(b) The court may interview the proposed Receiver in camera before deciding to

approve the Receiver nominated by the FTC. If Trudeau agrees to the

appointment of the proposed Receiver, his counsel shall notify the court on or

before July 30, 2013, at 1:00 p.m., at which time the he court will hold a hearing

with respect to the appointment of the Receiver.

(3) Trudeau will be ordered to execute any and all documents drawn by the FTC (or

the Receiver, if appointed by then) to transfer all ownership, control and direction

of any and all Trudeau Entities to the Receiver. Any dispute as to the form of

such documents must be brought to the court’s attention immediately. These

transfers will include the right by the Receiver to any and all revenue generated

by the Trudeau Entities, including but not limited to membership dues, salaries

1

The acronyms used herein are those used by the parties and specifically defined in the

FTC’s proposed findings of fact and conclusions of law (Doc. 713). 

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and royalties payable to Trudeau or on behalf of Trudeau or persons or entities

controlled by Trudeau.

(4) Trudeau will also be ordered to execute any and all documents drawn by the FTC

(or the Receiver if appointed by then) to transfer all bank accounts, brokerage

accounts, securities, and other liquid assets, along with the title to any

automobiles and any personal property not exempted by law to the Receiver. 

Trudeau will be ordered to direct the production of all records and statements

from bank and brokerage accounts controlled by him at the direction of the

Receiver. The Receiver shall allow Trudeau to retain sufficient funds and

property for ordinary and necessary living expenses. Any disputes regarding the

propriety of such expenses shall be brought to the court for resolution. Trudeau

will be ordered to cooperate fully with the Receiver and comply with the

Receiver’s directions to effectuate control over the assets and revenues covered

by this order, including but not limited to providing sworn statement(s) of any and

all money and property received by Trudeau from any source (specifically

including the Trudeau Entities and persons associated therewith) to the Receiver.

(5) Until further order of court, Trudeau, along with all persons and entities acting in

concert with him, are enjoined from directing the transfer or use of any money or

property of any Trudeau Entity, or of transferring or spending any money or

property other than for Trudeau’s ordinary and necessary living expenses and

attorneys fees as approved by the court. 

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(6) Failure to comply fully with the directions contained in this order will result in

Trudeau’s immediate incarceration until such compliance is achieved.

ENTER: July 26, 2013

__________________________________________

Robert W. Gettleman

United States District Judge

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