Shutdown Stalls Case Against Infomercial King

Federal attorneys have no money to pursue case against Kevin Trudeau

By Phil Rogers
|  Tuesday, Oct 1, 2013  |  Updated 5:51 PM CDT
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Unit 5 Investigates: Kevin Trudeau

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Infomercial king Kevin Trudeau has the United States Congress to thank for his freedom.

By shutting down the government, lawmakers have also shut down the federal lawyers attempting to throw Trudeau in jail.

Today, those attorneys for the Federal Trade Commission reluctantly told Judge Robert Gettleman that because of the government shutdown, they have no money to pursue the case against Trudeau. Because of that, they asked that a scheduled Oct. 4 hearing be indefinitely postponed.

For Trudeau, the delay could not come at a better time.

On Monday, while they still had funding, FTC lawyers presented evidence that the pitchman had continued to violate federal court orders, just a week after he had spent 24 hours in jail for similar acts of defiance. They once again asked that Trudeau be jailed, as efforts are made to satisfy the $37 million judgment he faces.

"There is no realistic probability that the receiver will locate the bulk of Trudeau's assets without his cooperation," attorney Jonathan Cohen advised the court Monday. "And there is zero probability that Trudeau will ever cooperate voluntarily."

Cohen noted Trudeau's failure to disclose the thousands he had stashed in an Australian bank account, along with a second account in his wife's name in Antigua. The FTC also accuses him of hiding more than $100,000 in gold.

"The FTC will of course follow any order of the court," Cohen declared, asking for Trudeau's immediate incarceration. "But it cannot continue wasting public funds, chasing down the avalanche of Trudeau's lies and deception."

For now, it appears Trudeau has a temporary ticket to the outside world.

In Tuesday's filing, the attorneys advised the court they would be unable to appear, until at least three days after government funding is restored.

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