receiver's motion to approve notice of distribution to the ftc ......certain natural cures...

UNITED STATES DISTRICT COURT FOR

THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

FEDERAL TRADE COMMISSION,

Plaintiff,

v.

KEVIN TRUDEAU,

Defendant.

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Case No.: 03-C-3904

Hon. Robert W. Gettleman

RECEIVER’S MOTION TO APPROVE NOTICE OF DISTRIBUTION TO THE FTC

Robb Evans & Associates LLC, in its capacity as the court-appointed receiver for the

assets of Kevin Trudeau and the Trudeau Entities et al. (the “Receiver”), by and through its

undersigned counsel, hereby moves for entry of an order (the “Motion”) authorizing the

Receiver’s proposed notice to interested parties of its plan to distribute the net proceeds of the

receivership estate to the FTC. In support of its Motion, the Receiver states as follows:

I. INTRODUCTION

1. Having now marshalled and liquidated substantially all of the assets of the

receivership estate, the Receiver anticipates that there will be nearly $8 million in net proceeds to

distribute. Because this amount, while substantial, is still far less than the $37 million contempt

sanction in favor the FTC, the Receiver does not anticipate having funds available to make a

distribution to any other creditors. Accordingly, in this motion, the Receiver proposes to provide

notice to all interested parties, including taxing authorities and pre-receivership creditors of the

Trudeau Entities, that the Receiver will pay the net proceeds from the receivership estate to the

FTC and afford such parties thirty days to assert any objections. Once such objections, if any,

Case: 1:03-cv-03904 Document #: 898 Filed: 07/15/15 of 31 PageID #:16991

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are resolved, the Receiver anticipates providing the Court with a final accounting and request to

close the receivership.

II. BACKGROUND

A. THE RECEIVERSHIP ESTATE.

2. On June 2, 2010, as a sanction for Defendant Kevin Trudeau (“Trudeau”)

contempt of the Court’s 2004 injunction, the Court ordered to Trudeau to pay the FTC

$37,616,161 corresponding to the consumer loss resulting from Trudeau’s “contumacious and

deceptive infomercial marketing of the Weight Loss Cures book.” (Order at 13-14 [Dkt. #372].)

On July 13, 2012, the FTC moved to hold Trudeau in contempt for failing to comply with that

order to pay. (FTC Contempt Motion [Dkt. #481].)

3. Following nearly a year of discovery and a subsequent evidentiary hearing, the

Court found Trudeau in contempt of its June 2, 2010 order. (7/26/2013 Order [Dkt. #729].) The

Court held that Trudeau had created and controlled a number of domestic and offshore entities,

including through figureheads such as his wife, Natalia Babenko, and Trudeau’s longtime

business associate, Neil Sant. (See FTC Findings § II.A & B [Dkt. #713].)1 Having found

Trudeau in contempt, the Court directed the FTC to propose a receiver to assume control of

Trudeau’s assets and all entities controlled by Trudeau. (7/26/2013 Order dated [Dkt. #729].) ¶

2.) The Court ordered that “[t]he Receiver shall marshal and hold such assets for the purpose of

paying to the FTC the sum ordered by the court on June 2, 2010 [i.e. $37,616,161].” (Id.) By

order dated August 7, 2013 (the “Receivership Order”), the Court appointed Robb Evans &

1 After “thoroughly review[ing] and confirm[ing] the accuracy of the FTC’s proposed findings

of fact and conclusions of law,” the Court adopted Findings II through VI and Conclusions I

through IV of those proposed findings. (7/26/2013 Order at ¶ (2) [Dkt. #729].)


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Associates LLC as the receiver over “Trudeau’s Assets” and the “Trudeau Entities” (as those

terms are defined in the Receivership Order).2 (Receivership Order § IV [Dkt. #742].)

4. In the Receivership Order, the Court again directed the Receiver to marshal and

hold Trudeau’s Assets, including all Assets of the Trudeau Entities, for the purpose of paying to

the FTC the $37 million contempt sanction. (Receivership Order §V(1) [Dkt. 742].) The Court

also directed the Receiver to not pay any pre-receivership debt incurred by Trudeau or any of the

Trudeau Entities without the Court’s prior approval, except as necessary to secure receivership

assets. (Id. §V(7).) Upon its appointment, the Receiver immediately began identifying and

assuming control of receivership assets.

B. THE RECEIVERSHIP ESTATE INCOME AND EXPENSES

5. As reflected in detail in the Administrative Expenses and Fund Balance Report

(the “Fund Balance Report”) attached as Exhibit A, as of March 31, 2015, the Receiver collected

total income before operating and receivership expenses of $12,927,092.06.3 The major sources

of such income are as follows:

Financial Accounts. The Receiver collected funds held in various accounts

totaling $4,403,941.80. Included among those funds, the Receiver was able to

recover $1,499,985.46 by causing GIN’s merchant processor to cease routing

2 The 29 entities identified in the Receivership Order as “Trudeau Entities” are: 0913372 B.C.

Ltd.; 0913376 B.C. Ltd.; Advantage Solutions Ltd; Alliance Publishing Group, Inc.; APC

Trading Limited; Direct Response Associates, LLC; GIN USA Inc.; Global Information Network

FDN; Global Sales Solutions A.G., International Pool Tour Inc.; K.T. Corporation Limited;

KMT Fiduciary Trust; KT Capital Corporation; KT Radio Network Inc.; Natural Cures, Inc.;

Natural Cures Health Institute; Natural Cures Holdings Inc.; NBT Trading Limited; N.T. Trading

S.A.; Pool Licensing LLC; Sovereign Trust; The Whistle Blower, Inc.; TRUCOM, L.L.C.;

Trudeau Approved Products Inc.; Trudeau Management Inc.; TruStar Marketing Corporation;

Trustar Productions, Incorporated; Website Solutions Switzerland GmbH; and Website Solutions

USA Inc. 3 Note that pages 1- 9 of the Fund Balance Report reflect monthly activity for June 2014 through

January 2015, while pages 10-18 reflect monthly activity for February 2015-March 2015, and

grand totals over the course of the receivership through March 31, 2015.


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credit card payments to depository accounts in St. Kitts Bank in Nevis and instead

directed such funds to domestic accounts within the Receiver’s control.4 (See

Receiver’s First Report at 5 [Dkt. #747].) The Receiver also assumed control

over various operating accounts of the Trudeau Entities, the most substantial of

which were associated with the GIN entities. In particular, the Receiver collected

a total of $2,346,427.04 from the accounts of Global Information Network,

Global Information Network Foundation, GIN FDN Event Account, and Website

Solutions USA. The Receiver also collected funds from a variety of other

sources, including from various overseas accounts identified by the Receiver

during the course of its investigation.

Proceeds from the Sale of Assets. The Receiver also generated proceeds from the

sale of various assets totaling $641,870.64. In particular, upon its appointment,

the Receiver obtained control over the operations of the GIN Club. The Receiver

worked to stabilize the GIN Club so that it could be operated as a legal and

financially stable company. As a result of its efforts, the Receiver was able to

market and sell its operating assets generating proceeds of $416,000. (See Mot. to

Approve Sale of GIN Club Assets [Dkt. #857].) The Receiver was also able to

realize proceeds of $89,434.49 from the sale of certain real estate in Ojai

California after negotiating with lien holders to accept a lower payoff amount.

(See Mot. To Approve Sale [Dkt. #824].) The Receiver also marketed and sold

certain Natural Cures Inventory resulting in proceeds of $65,000 and Trudeau’s

personal property resulting in proceeds of $71,429.75 through March 31, 2015.

(See id.; Motion to Approve TAP Sale [Dkt. #869].)

Income from Operations. In operating the Trudeau Entities, the Receiver

collected receipts totaling $7,867,844.71, including GIN membership dues of

$7,479,552.17. Other sources of operating income include copyright royalties

($129,356), Trudeau Approved Products credit card sales ($68,769.80), and sale

of inventory stock ($40,579.60).

6. Against the $12,927,092.06 of income, the receivership estate incurred total of

expenses of $6,535,586.41 through March 31, 2015. The Receiver incurred the majority of these

expenses –– $5,108,659.99 –– as part of operating GIN and the other Trudeau Entities. Costs for

GIN events, including education and social programing, totaled $1,173,332.36. Other business

operating expenses, including payroll, totaled $3,935,327.63. Additionally, the Receiver has

4 These funds are reflected in the Fund Balance Report under the line item “NBX Reserve

Funds.”


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incurred Receiver fees totaling $992,218.60 and out of pocket expenses of $108,767.28. The

Receiver has also incurred legal fees and expenses totaling $259,643.40.5

7. Deducting expenses from income through March 31, 2015, the Receiver held net

proceeds of $6,391,505.65. In the interim, the Receiver has continued to collect relatively

smaller amounts of income including approximately $50k in proceeds from the sale of additional

personal property and royalty income of less than $2k. The Receiver has also continued to incur

receivership expenses. The Receiver does not anticipate that such amounts will materially alter

the proceeds available to turnover to the FTC. Additionally, the Receiver is seeking turnover of

more than $2 million that Trudeau placed in an escrow account pursuant to the Court’s order.

(Mot. to Approve Turnover [Dkt. #894].) As such, the Receiver anticipates the receivership

estate will net more than $8 million.

III. RELIEF SOUGHT

8. As part of its appointment, the Receiver was directed to marshal and hold

Trudeau’s assets to pay the $37 million contempt sanction to the FTC. (Receivership Order

§V(1) [Dkt. 742].) Although the approximately $8 million of net receivership estate assets is a

substantial sum, the amount is grossly insufficient to fully pay the amount owed to the FTC.

Accordingly, the Receiver does not anticipate there will be any funds to distribute to other

creditors, including any pre-receivership creditors of Trudeau or the Trudeau Entities. As such,

in lieu of conducting a formal claims process, the Receiver proposes to distribute all proceeds of

the receivership estate, net of administrative expenses, including court-approved fees and

expenses of the receiver’s professionals, to the FTC. As there would be no funds to distribute to

5 Other expenses include: (a) $23,816.86 associated with insuring and maintaining real and

personal property located at Trudeau’s Ojai, California and Oak Brook, Illinois residences; (b)

$33,128.28 of legal defense funds turned over to Winston & Strawn LLC, and (c) $9,352 paid to

Trudeau for living expenses prior to the Court’s suspension of such allowance.


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any other creditors, the Receiver proposes that in lieu of a formal claims procedure to instead

provide broad notice to all interested persons that the Receiver shall turn over all net receivership

proceeds to the FTC. The notice will provide for a 30-day period during which interested

persons may file any objections with the Court. Once the objection period has expired and any

objections resolved, the Receiver anticipates filing a final accounting with the Court, confirming

final authority to turnover net proceeds to the FTC and closing the receivership.

9. In order to effect notice, the Receiver shall send a notice substantially in the form

of Exhibit B (the “Distribution Notice”) to the following categories of interested persons:

(1) United States Internal Revenue Service;

(2) the Illinois Department of Revenue, California Franchise Tax Board, California Board

of Equalization, the California Employment Development Department, City of Los Angeles –

Office of Finance, Illinois Department of Employment Security, Illinois Department of Labor,

Illinois Secretary of State, Michigan Department of Treasury, and Village of Oak Brook;

(3) all known disputed and undisputed creditors of the Trudeau Entities that are expressly

identified in the Receivership Order (and repeated in footnote 2 above); and

(4) all members and affiliates of the GIN Club known to the Receiver prior to the sale of

the GIN Club assets.

10. Because of the large number of potentially interested persons, including members

or affiliates of the GIN Club, delivery of a physical copy of the Distribution Notice would be

prohibitively expensive. Accordingly, similar to the procedures used in connection with the sale

of the GIN Club assets, the Receiver will send the Distribution Notice to the persons identified

above electronically using their last known email address. Notwithstanding the foregoing, the

Receiver will distribute the notice via United States mail to state and federal taxing authorities


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and to pre-receivership trade vendors whose address is known to the Receiver. The Receiver

shall issue the Distribution Notice as soon as practicable following Court approval, but no less

than 14 days. The Receiver believes that such notice procedures are reasonably calculated to

provide actual notice to all interested persons in the most expeditious manner possible while

minimizing unnecessary expenses to the receivership estate.

11. Adopting the forgoing notice procedure affords interested parties notice and an

opportunity to be heard –– the hallmarks of due process. S.E.C. v. Elliott, 953 F.2d 1560 (11th

Cir. 1992) (citing Cleveland Bd. Of Educ. v. Loudermill, 470 U.S. 532, 542 (1985)). A federal

district court presiding over an equity receivership exercises the traditional, common law powers

of equity and thereby has broad powers in fashioning appropriate relief. Liberte Capital Group,

LLC v. Capwill, 462 F.3d 543, 551 (6th Cir. 2006); see also Fed. R. Civ. P. 66 (“The practice in

the administration of estate by receivers . . . shall be in accordance with the practice heretofore

followed in the courts of the United States or as provided in rules promulgated by the district

court.”). Accordingly, Courts may properly employ summary proceedings as part of the

administration of an equity receivership in order to promote judicial efficiency, minimize costs

and preserve receivership assets. FDIC v. Bernstein, 786 F. Supp. 170, 177-78 (E.D.N.Y. 1992).

Here, given the size of the judgment in favor of the FTC and the comparatively limited

receivership assets, the Receiver believes providing broad notice to interested parties with an

opportunity to object both conserves assets of the receivership while affording appropriate due

process.


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WHEREFORE, Robb Evans & Associates LLC, in its capacity as court-appointed

Receiver, respectfully requests that the Court enter an order: (a) granting the Motion; (b)

approving the Receiver’s proposed procedures for affording notice of the Receiver’s intent to

pay the net proceeds of the receivership estate, after administrative expenses including

professional fees, to the FTC without further notice to creditors; (c) approve the form the

Distribution Notice attached as Exhibit B; and (d) grant such other relief as the Court deems just

and proper.

Dated: July 15, 2015 Respectfully submitted,

ROBB EVANS & ASSOCIATES LLC,

RECEIVER

By: /s/ Blair R. Zanzig

(One of Its Attorneys)

Blair R. Zanzig (No. 6273293)

John Hiltz (No. 6289744)

HILTZ & ZANZIG LLC

53 West Jackson Blvd., Suite 205

Chicago, Illinois 60604

Telephone: 312.566.9008

Fax: 312.566.9015

Counsel for Robb Evans & Associates LLC, in

its capacity as Receiver


EXHIBIT A

Case: 1:03-cv-03904 Document #: 898 Filed: 07/15/15 Page 10 of 31 PageID #:17000

ROBB EVANS & ASSOCIATES LLCReceiver of

The Assets of Kevin Trudeau, the Trudeau Entities, et al. Administrative Expenses and Fund Balance

From Inception (August 7, 2013) to March 31, 2015

Previously Reported and

Approved Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15

Proceeds from Sale of AssetsSale of 601 Del Oro Ojai, CA 89,434.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Sale of GIN 200,000.00 0.00 0.00 25,760.40 28,795.20 27,064.80 25,220.00 46,835.20 21,682.40Sale of Natural Cures Inventory 0.00 0.00 0.00 15,000.00 20,000.00 0.00 5,000.00 5,000.00 10,000.00K. Trudeau Personal Property 71,429.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Proceeds from Sale of Assets 360,864.24 0.00 0.00 40,760.40 48,795.20 27,064.80 30,220.00 51,835.20 31,682.40

Corporate Account FundsAlder & Alder LLC 0.00 0.00 628.63 0.00 0.00 0.00 0.00 0.00 0.00Banco Popular 20,582.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Brandy Burkhardt 5,307.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Debra A. Buettner P.C. 10,664.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Debt Cures, LLC 0.00 597.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00Global Information Network 225,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Global Info Network Foundation 263,803.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00GIN FDN Event Account 1,435,373.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Hellbenders/Trustar Prod. 2,697.31 1,293.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00I-Payout Systems Inc. 2,687.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00K.T. Corporation Limited 2,617.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00K.T. Radio Network Inc. 9,133.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Marc J. Lane Wealth Group 18,846.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Mary Patricia Benz Atty at Law 4,050.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Migros Bank 4,153.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Natural Cures Health Insurance 50,304.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Natural Cures Inc.

Baytree National B&T 30,618.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Cardflex Payment Solutions Inc. 38,091.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Meritus Payment Solutions 5,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00National Bank of California

Merchant #*6529 52,870.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Merchant #*6537 10,719.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Merchant #*6545 5,613.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Merchant #*6553 8,932.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total National Bank of California 78,134.57 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Natural Cures Inc. 151,844.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

NBX Reserve Funds 1,449,985.46 0.00 0.00 0.00 0.00 50,000.00 0.00 0.00 0.00

Page 1 of 18







Northern Trust 218.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Park Federal Savings Bank 13,657.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Pershing LLC 380.73 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00St. George Bank LTD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,886.02The Gordon Law Group LTD 11,335.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Tru-Com LLC 804.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Trudeau Approved Products 151,777.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Trustar Productions Inc. 1,376.72 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Website Solutions USA 422,249.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00William Hill Online Account 82,684.72 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Corporate Account Funds 4,341,536.36 1,890.79 628.63 0.00 0.00 50,000.00 0.00 0.00 9,886.02

Incoming ReceiptsGlobal Information Network

Receiver AccountCopyright Royalties 57,159.32 2,114.98 1,842.06 553.66 932.16 6,522.91 1,983.36 1,336.49 53,973.45Event Commissions 11,024.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Membership Dues & Upgrades-Chk 85,603.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Membership Dues & Upgrades - CC

Membership Dues & Upgrades - CC 8,548,803.77 (465.00) (150.00) 0.00 0.00 0.00 0.00 0.00 0.00Refunds & Returns (120,250.00) 300.00 0.00 0.00 (150.00) 0.00 0.00 0.00 0.00Chargebacks (32,374.96) (2,116.46) (600.00) 150.00 0.00 (4,160.00) 0.00 0.00 0.00Voided Sales (865,283.95) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Reserves Balance - Not Available (1,138,088.16) 241,698.33 202,235.83 188,986.25 146,440.00 131,351.75 131,351.75 51,873.02 0.00

Total Membership Dues & Upgrades - CC 6,392,806.70 239,416.87 201,485.83 189,136.25 146,290.00 127,191.75 131,351.75 51,873.02 0.00

Total Receiver Account 6,546,594.59 241,531.85 203,327.89 189,689.91 147,222.16 133,714.66 133,335.11 53,209.51 53,973.45

Non-Receiver AccountRemote Deposit 13,261.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Non-Receiver Account 13,261.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Global Information Network 6,559,855.74 241,531.85 203,327.89 189,689.91 147,222.16 133,714.66 133,335.11 53,209.51 53,973.45

Trudeau Approved ProductsReceiver Account

Credit Card SalesCredit Card Sales 73,957.84 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Page 2 of 18







Chargebacks (915.82) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Reserves (18,275.81) 0.00 18,275.81 0.00 0.00 0.00 0.00 0.00 0.00Refunds/Returns (4,272.22) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Credit Card Sales 50,493.99 0.00 18,275.81 0.00 0.00 0.00 0.00 0.00 0.00

Total Receiver Account 50,493.99 0.00 18,275.81 0.00 0.00 0.00 0.00 0.00 0.00

Non-Receiver AccountBankcard MTOT Dep 6,547.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00SBC VSMC Deposits 9,067.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Non-Receiver Account 15,615.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Trudeau Approved Products 66,109.16 0.00 18,275.81 0.00 0.00 0.00 0.00 0.00 0.00

GIN FDN Event RegistrationRefund of Registration Fees (7,392.75) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Reserves (2,927.10) 0.00 227.90 1,418.10 1,281.10 0.00 0.00 0.00 0.00GIN FDN Event Registration 31,475.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total GIN FDN Event Registration 21,155.15 0.00 227.90 1,418.10 1,281.10 0.00 0.00 0.00 0.00

Sale of Inventory Stock 29,197.94 8,379.85 760.18 2,241.63 0.00 0.00 0.00 0.00 0.00Total Incoming Receipts 6,676,317.99 249,911.70 222,591.78 193,349.64 148,503.26 133,714.66 133,335.11 53,209.51 53,973.45

Interest Income 766.84 (0.08) 128.73 132.20 140.61 146.38 146.18 157.10 158.05Miscellaneous Income

MetLife 5.50 12.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00Refunds 1,445.21 56.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00Tax Refunds 1,995.88 477.78 1,646.62 0.00 0.00 0.00 0.00 0.00 0.00Utility Account Refunds 228.74 0.00 4,262.39 32.81 0.00 0.00 0.00 0.00 0.00Miscellaneous Income 1,193.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Miscellaneous Income 4,868.39 546.47 5,909.01 32.81 0.00 0.00 0.00 0.00 0.00

Total Income 11,384,353.82 252,348.88 229,258.15 234,275.05 197,439.07 210,925.84 163,701.29 105,201.81 95,699.92

ExpenseOak Brook, IL Residence

Casualty & Liability Insurance 0.00 0.00 0.00 0.00 135.72 140.24 135.72 140.24 140.72Total Oak Brook, IL Residence 0.00 0.00 0.00 0.00 135.72 140.24 135.72 140.24 140.72

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GIN FDN Event ExpensesCellular & Communications 1,327.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Toronto Oct. 2013

Ticket Sales Commission 3,577.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Speaker Fees 1,788.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Toronto Oct. 2013 5,365.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

PowerUp! Los AngelesFood & Beverage 1,048.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Meals & Incidentals 2,363.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Taxi & Parking 297.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Car Rental 157.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Rooms/Lodging 2,572.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Speaker Fees 8,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Airfare 5,389.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Per Diem Expenses 198.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Venue Rental 7,895.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total PowerUp! Los Angeles 27,921.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Power Up Paris!Ground Transportation 388.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Meals & Incidentals 2,201.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Lodging/Rooms 3,047.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00A/V Rental 2,118.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Venue Rental 5,555.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Translation Services 4,496.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Airfare 1,252.88 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Speaker Fees 2,250.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Speaker Expenses 1,863.44 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Power Up Paris! 23,173.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Level 6 Training & 5 ExamsStaff Expenses 634.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Parking & Tolls 140.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Food & Beverage 1,399.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Venue Rental 2,810.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Level 6 Training & 5 Exams 4,984.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Page 4 of 18







Leadership Round Table MtgAirfare 337.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Meals & Incidentals 1,708.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Promotion & Supplies 560.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Food & Beverage 3,637.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Venue Rental 734.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Leadership Round Table Mtg 6,978.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Power Up! Chicago 2/22/14Ground Transportation 178.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Meals & Incidentals 531.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Staff Expenses 1,019.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Parking & Tolls 153.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Airfare & Taxi 922.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Speaker Lodging & Expenses 640.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Audio & Visual 3,063.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Food & Beverage 203.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Speaker Fees 10,250.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Venue Rental 1,128.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Power Up! Chicago 2/22/14 18,090.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Bank Fees 741.57 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Authnet Gateway Fees 358.10 39.95 39.95 39.95 0.00 0.00 0.00 0.00 0.00Credit Card Discounts 2,412.17 147.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00Credit Card Fees 764.67 7.95 0.00 0.00 39.95 39.95 39.95 0.00 0.00Event Management Expenses 20,349.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Event Management Fees 450,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Gift Cards 215.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00GIN Family Reunion Event Exp 602,704.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Recording/Production Costs 73.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Speaker Fees 1,258.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Speaker Gifts 21.44 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Ticket Sales Commissions 710.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Travel Expenses 5,486.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total GIN FDN Event Expenses 1,172,937.50 195.11 39.95 39.95 39.95 39.95 39.95 0.00 0.00

Page 5 of 18







Business Operation ExpensesAlarm & Security 315.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Bank Fees 321.78 91.80 0.00 0.00 0.00 55.00 0.00 0.00 0.00Cellular Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Colocation Server Services 51,450.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Communication Consulting 37,152.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Contest Winner Vehicle Lease 43,500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Corporate Insurance Premiums 25,401.33 683.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00Credit Card Discounts & Fees

CC FeesAuthnet Gateway Fees 11,719.50 451.10 39.90 39.90 39.90 39.90 39.90 24.62 29.95Meritus Merchant 114.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00NMC Credit Card Fees 190,568.70 10,820.78 450.01 120.07 0.00 0.00 0.00 0.00 0.00Verifi 267.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total CC Fees 202,671.05 11,271.88 489.91 159.97 39.90 39.90 39.90 24.62 29.95

CC DiscountsGIN CC Discounts 381,996.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Trudeau App Product CC Discount 5,438.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total CC Discounts 387,435.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Credit Card Discounts & Fees 590,106.10 11,271.88 489.91 159.97 39.90 39.90 39.90 24.62 29.95

Document Destruction Services 348.96 292.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00Domain License 2,300.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Electricity 12,317.18 381.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00Employer Payroll Taxes 111,666.44 6,270.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00Equipment Rental 2,044.63 112.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00Exigo Services 114,223.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00G.I.N. Commission Payments 749,171.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Health Insurance & Benefits 341,399.95 (1,945.63) 0.00 0.00 0.00 0.00 0.00 0.00 0.00Independent Contractor Fees 124,827.18 500.00 465.83 0.00 0.00 7.84 31.37 0.00 0.00Intercompany Payroll Allocation 7,200.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Inventory Disposal/Shredding 565.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Inventory Storage 18,982.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Janitorial Services 10,885.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Locksmith Services 251.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Page 6 of 18







Meals & Entertainment 8,237.23 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Member/Affiliate Communications 5,040.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Moving/Packing Services 0.00 372.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00Music License Fees 150.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Natural Gas 10,761.88 359.62 0.00 0.00 0.00 0.00 0.00 0.00 0.00Office Rent 204,750.98 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Office Sublease Commission 1,996.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Office Supplies 4,105.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Payroll Expenses 1,298,449.29 7,777.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00Payroll Processing Fees 4,592.10 544.14 148.03 63.00 49.00 49.00 63.00 69.00 49.00Penalties & Interest 131.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Phone & Internet Services 31,746.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PO Box Rent 888.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Postage & Delivery 6,147.93 1,293.90 166.40 103.70 18.78 0.00 0.48 55.33 0.00Prior Period CC Return 450.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Promotional Expenses 5,509.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Sales & Use Taxes 2,013.72 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Security Services 960.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Shipping & Packaging 18,738.69 1,240.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00Software Support Service 23,449.03 0.00 0.00 1,819.31 0.00 0.00 0.00 0.00 0.00Storage Unit Rent 6,353.00 353.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Transportation Services 772.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Unspecified Business Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00UPC/Trademark Registrations Fee 206.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Worker Compensation Insurance 3,359.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Website Services 18,132.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Business Operation Expenses 3,901,372.73 29,598.03 1,270.17 2,145.98 107.68 151.74 134.75 148.95 78.95

Ojai, CA Residential PropertyAppraisal Fees 950.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Electricity 7,419.58 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Landscaping Maintenance 2,983.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Maintenance & Repairs 295.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Natural Gas 679.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Pool Maintenance 880.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Property Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Security Alarm Monitoring 591.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Security & Caretaking 4,358.98 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Page 7 of 18







Telephone 434.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Title Insurance 700.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Water 3,564.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Ojai, CA Residential Property 22,856.83 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Payment to Winston & Strawn LLP 33,128.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Kevin Trudeau Living Expense 9,352.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Receiver Fees & Expenses

Receiver FeesReceiver

R. Evans 841.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00B. Kane 72,993.15 1,537.65 2,321.55 180.90 331.65 30.15 180.90 0.00 1,809.00K. Johnson 116,318.70 1,055.25 2,442.15 391.95 90.45 0.00 0.00 603.00 1,748.70V. Miller 163,774.80 2,743.65 6,934.50 8,954.55 2,502.45 361.80 211.05 0.00 723.60A. Jen 97,746.30 2,442.15 2,954.70 663.30 2,170.80 331.65 301.50 572.85 271.35

Total Receiver 451,674.45 7,778.70 14,652.90 10,190.70 5,095.35 723.60 693.45 1,175.85 4,552.65

Senior StaffL. Lee 35,245.35 603.00 90.45 542.70 663.80 90.45 60.30 90.45 120.60T. Chung 82,038.15 0.00 11,577.60 17,004.60 20,713.05 0.00 0.00 0.00 21,798.45F. Jen 106,248.60 542.70 16,281.00 15,889.05 14,321.25 1,055.25 0.00 0.00 331.65C. Callahan 20,160.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00E. Roop 9,058.50 4,603.50 1,269.00 1,296.00 1,026.00 1,957.50 0.00 0.00 0.00C. DeCius 47,115.00 2,583.00 1,170.00 450.00 486.00 306.00 801.00 360.00 531.00N. Wolf 120.00 0.00 6.00 12.00 0.00 0.00 0.00 0.00 0.00J. Dadbin 11,858.00 126.50 357.50 187.00 110.00 110.00 764.50 605.00 165.00

Total Senior Staff 311,843.60 8,458.70 30,751.55 35,381.35 37,320.10 3,519.20 1,625.80 1,055.45 22,946.70

Support Staff 11,854.80 356.10 346.70 300.10 309.90 96.70 446.90 121.40 151.50Total Receiver Fees 775,372.85 16,593.50 45,751.15 45,872.15 42,725.35 4,339.50 2,766.15 2,352.70 27,650.85

Receiver ExpensesBank Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Investigative Search Costs 34,138.94 0.00 0.00 0.00 293.80 14.47 0.00 151.55 0.00Occupancy & Storage 0.00 450.00 450.00 626.67 145.00 145.00 145.00 145.00 145.00Office Telephone & Supplies 1,503.79 154.85 150.15 43.57 0.00 0.00 0.00 0.00 0.00Postage & Delivery 6,232.33 71.18 156.55 95.26 193.43 130.08 0.00 6.01 13.92Subpoena/Document Reproduction 9,712.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Page 8 of 18







Tax Return Preparation Fees 0.00 0.00 0.00 0.00 0.00 0.00 20,962.85 0.00 0.00Travel Expenses 30,881.19 286.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00Website Support 887.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Receiver Expenses 83,355.83 962.95 756.70 765.50 632.23 289.55 21,107.85 302.56 158.92

Legal Fees & CostsHiltz Wantuch & Zanzig

Legal Fees 205,848.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Legal Costs 2,608.62 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Hiltz Wantuch & Zanzig 208,456.62 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

HolzhackerLegal Fees 7,783.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Legal Costs 11.84 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Holzhacker 7,795.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

McKenna Long & Aldridge LLPLegal Fees 18,253.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Legal Costs 11.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total McKenna Long & Aldridge LLP 18,265.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Meridian LawyersLegal Fees 1,930.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Legal Costs 436.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Meridian Lawyers 2,367.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Legal Fees & Costs 236,884.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Receiver Fees & Expenses 1,095,613.11 17,556.45 46,507.85 46,637.65 43,357.58 4,629.05 23,874.00 2,655.26 27,809.77

Total Expense 6,235,260.45 47,349.59 47,817.97 48,823.58 43,640.93 4,960.98 24,184.42 2,944.45 28,029.44

Net Transactions 204,999.29 181,440.18 185,451.47 153,798.14 205,964.86 139,516.87 102,257.36 67,670.48

Fund Balance 5,149,093.37

Page 9 of 18





Proceeds from Sale of AssetsSale of 601 Del Oro Ojai, CASale of GINSale of Natural Cures InventoryK. Trudeau Personal Property

Total Proceeds from Sale of Assets

Corporate Account FundsAlder & Alder LLCBanco PopularBrandy BurkhardtDebra A. Buettner P.C.Debt Cures, LLCGlobal Information NetworkGlobal Info Network FoundationGIN FDN Event AccountHellbenders/Trustar Prod.I-Payout Systems Inc.K.T. Corporation LimitedK.T. Radio Network Inc.Marc J. Lane Wealth GroupMary Patricia Benz Atty at LawMigros BankNatural Cures Health InsuranceNatural Cures Inc.

Baytree National B&TCardflex Payment Solutions Inc.Meritus Payment SolutionsNational Bank of California

Merchant #*6529Merchant #*6537Merchant #*6545Merchant #*6553

Total National Bank of California

Total Natural Cures Inc.

NBX Reserve Funds

Feb 15 Mar 156/1/14-3/31/15 TOTAL

0.00 0.00 0.00 89,434.4920,779.20 19,869.20 216,006.40 416,006.405,000.00 5,000.00 65,000.00 65,000.00

0.00 0.00 0.00 71,429.7525,779.20 24,869.20 281,006.40 641,870.64

0.00 0.00 628.63 628.630.00 0.00 0.00 20,582.270.00 0.00 0.00 5,307.500.00 0.00 0.00 10,664.500.00 0.00 597.55 597.550.00 0.00 0.00 225,000.000.00 0.00 0.00 263,803.760.00 0.00 0.00 1,435,373.800.00 0.00 1,293.24 3,990.550.00 0.00 0.00 2,687.110.00 0.00 0.00 2,617.020.00 0.00 0.00 9,133.350.00 0.00 0.00 18,846.410.00 0.00 0.00 4,050.000.00 0.00 0.00 4,153.970.00 0.00 0.00 50,304.26

0.00 0.00 0.00 30,618.280.00 0.00 0.00 38,091.900.00 0.00 0.00 5,000.00

0.00 0.00 0.00 52,870.260.00 0.00 0.00 10,719.000.00 0.00 0.00 5,613.140.00 0.00 0.00 8,932.170.00 0.00 0.00 78,134.57

0.00 0.00 0.00 151,844.75

0.00 0.00 50,000.00 1,499,985.46

Page 10 of 18





Northern TrustPark Federal Savings BankPershing LLCSt. George Bank LTDThe Gordon Law Group LTDTru-Com LLCTrudeau Approved ProductsTrustar Productions Inc.Website Solutions USAWilliam Hill Online Account

Total Corporate Account Funds

Incoming ReceiptsGlobal Information Network

Receiver AccountCopyright RoyaltiesEvent CommissionsMembership Dues & Upgrades-ChkMembership Dues & Upgrades - CC

Membership Dues & Upgrades - CCRefunds & ReturnsChargebacksVoided SalesReserves Balance - Not Available

Total Membership Dues & Upgrades - CC

Total Receiver Account

Non-Receiver AccountRemote Deposit

Total Non-Receiver Account

Total Global Information Network

Trudeau Approved ProductsReceiver Account

Credit Card SalesCredit Card Sales

Feb 15 Mar 156/1/14-3/31/15 TOTAL

0.00 0.00 0.00 218.240.00 0.00 0.00 13,657.540.00 0.00 0.00 380.730.00 0.00 9,886.02 9,886.020.00 0.00 0.00 11,335.500.00 0.00 0.00 804.010.00 0.00 0.00 151,777.950.00 0.00 0.00 1,376.720.00 0.00 0.00 422,249.480.00 0.00 0.00 82,684.720.00 0.00 62,405.44 4,403,941.80

1,010.95 1,926.66 72,196.68 129,356.000.00 0.00 0.00 11,024.750.00 0.00 0.00 85,603.82

(44,151.23) 0.00 (44,766.23) 8,504,037.540.00 0.00 150.00 (120,100.00)0.00 0.00 (6,726.46) (39,101.42)0.00 0.00 0.00 (865,283.95)

44,151.23 0.00 1,138,088.16 0.000.00 0.00 1,086,745.47 7,479,552.17

1,010.95 1,926.66 1,158,942.15 7,705,536.74

0.00 0.00 0.00 13,261.150.00 0.00 0.00 13,261.15

1,010.95 1,926.66 1,158,942.15 7,718,797.89

0.00 0.00 0.00 73,957.84

Page 11 of 18





ChargebacksReservesRefunds/Returns

Total Credit Card Sales

Total Receiver Account

Non-Receiver AccountBankcard MTOT DepSBC VSMC Deposits

Total Non-Receiver Account

Total Trudeau Approved Products

GIN FDN Event RegistrationRefund of Registration FeesReservesGIN FDN Event Registration

Total GIN FDN Event Registration

Sale of Inventory Stock

Total Incoming Receipts

Interest IncomeMiscellaneous Income

MetLifeRefundsTax RefundsUtility Account RefundsMiscellaneous Income

Total Miscellaneous Income

Total Income

ExpenseOak Brook, IL Residence

Casualty & Liability Insurance

Total Oak Brook, IL Residence

Feb 15 Mar 156/1/14-3/31/15 TOTAL

0.00 0.00 0.00 (915.82)0.00 0.00 18,275.81 0.000.00 0.00 0.00 (4,272.22)0.00 0.00 18,275.81 68,769.80

0.00 0.00 18,275.81 68,769.80

0.00 0.00 0.00 6,547.610.00 0.00 0.00 9,067.560.00 0.00 0.00 15,615.17

0.00 0.00 18,275.81 84,384.97

0.00 0.00 0.00 (7,392.75)0.00 0.00 2,927.10 0.000.00 0.00 0.00 31,475.000.00 0.00 2,927.10 24,082.25

0.00 0.00 11,381.66 40,579.601,010.95 1,926.66 1,191,526.72 7,867,844.71

143.40 158.82 1,311.39 2,078.23

0.00 0.00 12.50 18.000.00 0.00 56.19 1,501.400.00 0.00 2,124.40 4,120.280.00 0.00 4,295.20 4,523.940.00 0.00 0.00 1,193.060.00 0.00 6,488.29 11,356.68

26,933.55 26,954.68 1,542,738.24 12,927,092.06

126.67 140.72 960.03 960.03126.67 140.72 960.03 960.03

Page 12 of 18





GIN FDN Event ExpensesCellular & CommunicationsToronto Oct. 2013

Ticket Sales CommissionSpeaker Fees

Total Toronto Oct. 2013

PowerUp! Los AngelesFood & BeverageMeals & IncidentalsTaxi & ParkingCar RentalRooms/LodgingSpeaker FeesAirfarePer Diem ExpensesVenue Rental

Total PowerUp! Los Angeles

Power Up Paris!Ground TransportationMeals & IncidentalsLodging/RoomsA/V RentalVenue RentalTranslation ServicesAirfareSpeaker FeesSpeaker Expenses

Total Power Up Paris!

Level 6 Training & 5 ExamsStaff ExpensesParking & TollsFood & BeverageVenue Rental

Total Level 6 Training & 5 Exams

Feb 15 Mar 156/1/14-3/31/15 TOTAL

0.00 0.00 0.00 1,327.41

0.00 0.00 0.00 3,577.000.00 0.00 0.00 1,788.500.00 0.00 0.00 5,365.50

0.00 0.00 0.00 1,048.200.00 0.00 0.00 2,363.930.00 0.00 0.00 297.110.00 0.00 0.00 157.760.00 0.00 0.00 2,572.810.00 0.00 0.00 8,000.000.00 0.00 0.00 5,389.150.00 0.00 0.00 198.000.00 0.00 0.00 7,895.010.00 0.00 0.00 27,921.97

0.00 0.00 0.00 388.410.00 0.00 0.00 2,201.090.00 0.00 0.00 3,047.790.00 0.00 0.00 2,118.170.00 0.00 0.00 5,555.100.00 0.00 0.00 4,496.500.00 0.00 0.00 1,252.880.00 0.00 0.00 2,250.000.00 0.00 0.00 1,863.440.00 0.00 0.00 23,173.38

0.00 0.00 0.00 634.740.00 0.00 0.00 140.000.00 0.00 0.00 1,399.400.00 0.00 0.00 2,810.000.00 0.00 0.00 4,984.14

Page 13 of 18





Leadership Round Table MtgAirfareMeals & IncidentalsPromotion & SuppliesFood & BeverageVenue Rental

Total Leadership Round Table Mtg

Power Up! Chicago 2/22/14Ground TransportationMeals & IncidentalsStaff ExpensesParking & TollsAirfare & TaxiSpeaker Lodging & ExpensesAudio & VisualFood & BeverageSpeaker FeesVenue Rental

Total Power Up! Chicago 2/22/14

Bank FeesAuthnet Gateway FeesCredit Card DiscountsCredit Card FeesEvent Management ExpensesEvent Management FeesGift CardsGIN Family Reunion Event ExpRecording/Production CostsSpeaker FeesSpeaker GiftsTicket Sales CommissionsTravel Expenses

Total GIN FDN Event Expenses

Feb 15 Mar 156/1/14-3/31/15 TOTAL

0.00 0.00 0.00 337.000.00 0.00 0.00 1,708.270.00 0.00 0.00 560.920.00 0.00 0.00 3,637.760.00 0.00 0.00 734.250.00 0.00 0.00 6,978.20

0.00 0.00 0.00 178.080.00 0.00 0.00 531.240.00 0.00 0.00 1,019.490.00 0.00 0.00 153.000.00 0.00 0.00 922.740.00 0.00 0.00 640.740.00 0.00 0.00 3,063.390.00 0.00 0.00 203.410.00 0.00 0.00 10,250.000.00 0.00 0.00 1,128.220.00 0.00 0.00 18,090.31

0.00 0.00 0.00 741.570.00 0.00 119.85 477.950.00 0.00 147.21 2,559.380.00 0.00 127.80 892.470.00 0.00 0.00 20,349.990.00 0.00 0.00 450,000.000.00 0.00 0.00 215.350.00 0.00 0.00 602,704.690.00 0.00 0.00 73.160.00 0.00 0.00 1,258.000.00 0.00 0.00 21.440.00 0.00 0.00 710.500.00 0.00 0.00 5,486.95

0.00 0.00 394.86 1,173,332.36

Page 14 of 18





Business Operation ExpensesAlarm & SecurityBank FeesCellular ServicesColocation Server ServicesCommunication ConsultingContest Winner Vehicle LeaseCorporate Insurance PremiumsCredit Card Discounts & Fees

CC FeesAuthnet Gateway FeesMeritus MerchantNMC Credit Card FeesVerifi

Total CC Fees

CC DiscountsGIN CC DiscountsTrudeau App Product CC Discount

Total CC Discounts

Total Credit Card Discounts & Fees

Document Destruction ServicesDomain LicenseElectricityEmployer Payroll TaxesEquipment RentalExigo ServicesG.I.N. Commission PaymentsHealth Insurance & BenefitsIndependent Contractor FeesIntercompany Payroll AllocationInventory Disposal/ShreddingInventory StorageJanitorial ServicesLocksmith Services

Feb 15 Mar 156/1/14-3/31/15 TOTAL

0.00 0.00 0.00 315.000.00 0.00 146.80 468.580.00 0.00 0.00 0.000.00 0.00 0.00 51,450.000.00 0.00 0.00 37,152.000.00 0.00 0.00 43,500.000.00 0.00 683.11 26,084.44

29.95 29.95 765.07 12,484.570.00 0.00 0.00 114.900.00 0.00 11,390.86 201,959.560.00 0.00 0.00 267.9529.95 29.95 12,155.93 214,826.98

0.00 0.00 0.00 381,996.450.00 0.00 0.00 5,438.600.00 0.00 0.00 387,435.05

29.95 29.95 12,155.93 602,262.03

0.00 0.00 292.05 641.010.00 0.00 0.00 2,300.000.00 0.00 381.16 12,698.340.00 0.00 6,270.40 117,936.840.00 0.00 112.55 2,157.180.00 0.00 0.00 114,223.920.00 0.00 0.00 749,171.400.00 0.00 (1,945.63) 339,454.320.00 0.00 1,005.04 125,832.220.00 0.00 0.00 7,200.000.00 0.00 0.00 565.000.00 0.00 0.00 18,982.510.00 0.00 0.00 10,885.000.00 0.00 0.00 251.90

Page 15 of 18





Meals & EntertainmentMember/Affiliate CommunicationsMoving/Packing ServicesMusic License FeesNatural GasOffice RentOffice Sublease CommissionOffice SuppliesPayroll ExpensesPayroll Processing FeesPenalties & InterestPhone & Internet ServicesPO Box RentPostage & DeliveryPrior Period CC ReturnPromotional ExpensesSales & Use TaxesSecurity ServicesShipping & PackagingSoftware Support ServiceStorage Unit RentTransportation ServicesUnspecified Business ExpensesUPC/Trademark Registrations FeeWorker Compensation InsuranceWebsite Services

Total Business Operation Expenses

Ojai, CA Residential PropertyAppraisal FeesElectricityLandscaping MaintenanceMaintenance & RepairsNatural GasPool MaintenanceProperty TaxesSecurity Alarm MonitoringSecurity & Caretaking

Feb 15 Mar 156/1/14-3/31/15 TOTAL

0.00 0.00 0.00 8,237.230.00 0.00 0.00 5,040.000.00 0.00 372.04 372.040.00 0.00 0.00 150.000.00 0.00 359.62 11,121.500.00 0.00 0.00 204,750.980.00 0.00 0.00 1,996.430.00 0.00 0.00 4,105.450.00 0.00 7,777.19 1,306,226.48

258.75 0.00 1,292.92 5,885.020.00 0.00 0.00 131.280.00 0.00 0.00 31,746.660.00 0.00 0.00 888.000.00 0.00 1,638.59 7,786.520.00 0.00 0.00 450.000.00 0.00 0.00 5,509.860.00 0.00 0.00 2,013.720.00 0.00 0.00 960.000.00 0.00 1,240.82 19,979.510.00 0.00 1,819.31 25,268.340.00 0.00 353.00 6,706.000.00 0.00 0.00 772.590.00 0.00 0.00 0.000.00 0.00 0.00 206.910.00 0.00 0.00 3,359.250.00 0.00 0.00 18,132.17

288.70 29.95 33,954.90 3,935,327.63

0.00 0.00 0.00 950.000.00 0.00 0.00 7,419.580.00 0.00 0.00 2,983.590.00 0.00 0.00 295.000.00 0.00 0.00 679.400.00 0.00 0.00 880.000.00 0.00 0.00 0.000.00 0.00 0.00 591.850.00 0.00 0.00 4,358.98

Page 16 of 18





TelephoneTitle InsuranceWater

Total Ojai, CA Residential Property

Payment to Winston & Strawn LLPKevin Trudeau Living ExpenseReceiver Fees & Expenses

Receiver FeesReceiver

R. EvansB. KaneK. JohnsonV. MillerA. Jen

Total Receiver

Senior StaffL. LeeT. ChungF. JenC. CallahanE. RoopC. DeCiusN. WolfJ. Dadbin

Total Senior Staff

Support Staff

Total Receiver Fees

Receiver ExpensesBank FeesInvestigative Search CostsOccupancy & StorageOffice Telephone & SuppliesPostage & DeliverySubpoena/Document Reproduction

Feb 15 Mar 156/1/14-3/31/15 TOTAL

0.00 0.00 0.00 434.300.00 0.00 0.00 700.000.00 0.00 0.00 3,564.130.00 0.00 0.00 22,856.83

0.00 0.00 0.00 33,128.280.00 0.00 0.00 9,352.00

0.00 0.00 0.00 841.501,628.10 60.30 8,080.20 81,073.35391.95 0.00 6,723.45 123,042.15150.75 0.00 22,582.35 186,357.151,447.20 391.95 11,547.45 109,293.753,618.00 452.25 48,933.45 500,607.90

60.30 180.90 2,502.95 37,748.3011,487.15 5,849.10 88,429.95 170,468.104,884.30 120.60 53,425.80 159,674.40

0.00 0.00 0.00 20,160.000.00 0.00 10,152.00 19,210.50

135.00 909.00 7,731.00 54,846.000.00 0.00 18.00 138.00

863.50 110.00 3,399.00 15,257.0017,430.25 7,169.60 165,658.70 477,502.30

53.00 71.30 2,253.60 14,108.4021,101.25 7,693.15 216,845.75 992,218.60

0.00 0.00 0.00 0.000.00 0.00 459.82 34,598.76

145.00 145.00 2,541.67 2,541.670.00 0.00 348.57 1,852.3639.31 105.88 811.62 7,043.950.00 0.00 0.00 9,712.37

Page 17 of 18





Tax Return Preparation FeesTravel ExpensesWebsite Support

Total Receiver Expenses

Legal Fees & CostsHiltz Wantuch & Zanzig

Legal FeesLegal Costs

Total Hiltz Wantuch & Zanzig

HolzhackerLegal FeesLegal Costs

Total Holzhacker

McKenna Long & Aldridge LLPLegal FeesLegal Costs

Total McKenna Long & Aldridge LLP

Meridian LawyersLegal FeesLegal Costs

Total Meridian Lawyers

Total Legal Fees & Costs

Total Receiver Fees & Expenses

Total Expense

Net Transactions

Fund Balance

Feb 15 Mar 156/1/14-3/31/15 TOTAL

0.00 0.00 20,962.85 20,962.850.00 0.00 286.92 31,168.110.00 0.00 0.00 887.21

184.31 250.88 25,411.45 108,767.28

20,412.00 972.00 21,384.00 227,232.00452.95 15.00 467.95 3,076.57

20,864.95 987.00 21,851.95 230,308.57

0.00 0.00 0.00 7,783.200.00 0.00 0.00 11.840.00 0.00 0.00 7,795.04

658.80 0.00 658.80 18,912.1527.72 0.00 27.72 39.69686.52 0.00 686.52 18,951.84

0.00 200.45 200.45 2,130.950.00 20.05 20.05 457.000.00 220.50 220.50 2,587.95

21,551.47 1,207.50 22,758.97 259,643.40

42,837.03 9,151.53 265,016.17 1,360,629.28

43,252.40 9,322.20 300,325.96 6,535,586.41

(16,318.85) 17,632.48 1,242,412.28

6,391,505.65

Page 18 of 18


EXHIBIT B




EASTERN DIVISION


Plaintiff,

v.

KEVIN TRUDEAU,

Defendant.

)

)

)

)

)

)

)

)

)

)

Case No.: 03-C-3904


NOTICE OF RECEIVERS’ INTENT

TO DISTRIBUTE RECEIVERSHIP ASSETS TO FTC

PLEASE REVIEW THE FOLLOWING CLOSELY:

Robb Evans and Associates LLC serves as the court-appointed receiver of the Assets of Kevin

Trudeau and the Trudeau Entities pursuant to the United States District Court for the Northern

District of Illinois’s (the “Court”) order dated August 7, 2013 (the “Receivership Order”). A

copy of the Receivership Order may be accessed at http://www.robbevans.com/assets/case-

files/ktrudeauorder02.pdf.

As provided in the Receivership Order, the Trudeau Entities include the following:

0913372 B.C. Ltd. 0913376 B.C. Ltd.

Advantage Solutions Ltd Alliance Publishing Group, Inc.

APC Trading Limited Direct Response Associates, LLC

GIN USA Inc. Global Information Network FDN

Global Sales Solutions A.G. International Pool Tour Inc.

K.T. Corporation Limited KMT Fiduciary Trust

KT Capital Corporation KT Radio Network Inc.

Natural Cures, Inc. Natural Cures Health Institute

Natural Cures Holdings Inc. NBT Trading Limited

N.T. Trading S.A. Pool Licensing LLC

Sovereign Trust The Whistle Blower, Inc.

TRUCOM, L.L.C. Trudeau Approved Products Inc.

Trudeau Management Inc. TruStar Marketing Corporation

Trustar Productions, Incorporated Website Solutions Switzerland GmbH

Website Solutions USA Inc.

In addition to the entities enumerated in the Receivership Order, the Receiver identified the

following additional entities that may also fall within the scope of the receivership:


2

Alliance Real Estate Holdings, LLC Natural Cures Real Estate Holdings LLC

Shop America Custom Fulfillment

Direct Response Marketing Natural Cures Health Limited

Trudeau Training Team LLC Natural Cures.com, Inc.

Shop America Marketing Group

On June 2, 2010, the Court directed Kevin Trudeau to pay to the Federal Trade Commission (the

“FTC”) a contempt sanction in the amount of $37,616,161. Pursuant to the Receivership Order,

the Court directed the Receiver to marshal and hold Trudeau’s Assets including, without

limitation, all personal Assets of Trudeau and all Assets of the Trudeau Entities, for the purpose

of paying such amount to the FTC.

Subject to a final accounting, the Receiver anticipates that receivership assets, net of

administrative expenses, including the fees and expenses of the Receiver’s professionals, will

total approximately $8 million. Because such amount is grossly insufficient to pay the $37

million judgement in favor of the FTC, the Receiver anticipates there will be no funds to

available to distribute to any other creditors of Trudeau or any of the Trudeau Entities

identified above. Accordingly, the Receiver has sought Court authority to pay the net

proceeds of the Receivership Estate to the FTC without further notice to creditors.

OBJECTION DEADLINE. ANY OBJECTIONS TO THE RECEIVER’S PROPOSED PLAN

TO DISTRIBUTE ALL NET RECEIVERSHIP ASSETS TO THE FTC MUST BE FILED IN

WRITING WITH THE ABOVE-CAPTIONED COURT NO LATER THAN SEPTEMBER 4,

2015 BY 5:00 P.M. ANY OBJECTIONS NOT RECEIVED BY THAT TIME SHALL BE

DEEMED WAIVED.

Copies of any objections must also be served on the Receiver at the following address:

Receiver of the Assets of Kevin Trudeau and Trudeau Entities

c/o Robb Evans & Associates LLC

11450 Sheldon Street

Sun Valley, California 91352-1121




EASTERN DIVISION


Plaintiff,

v.

KEVIN TRUDEAU,

Defendant.

)

)

)

)

)

)

)

)

)

)

Case No.: 03-C-3904


NOTICE OF MOTION

PLEASE TAKE NOTICE that, on Tuesday, July 21, 2015, at 10:00 a.m., or as soon

thereafter as counsel may be heard, the undersigned shall appear before the Honorable Robert W.

Gettleman, United States District Court for the Northern District of Illinois, Eastern Division, or

such other judge as may be sitting in his place in Courtroom 1703, 219 S. Dearborn Street,

Chicago, Illinois 60604, and shall present the Receiver’s Motion to Approve Notice of

Distribution to FTC, a copy of which is hereby served upon you.

Dated: July 15, 2015 Respectfully Submitted,

ROBB EVANS & ASSOCIATES LLC,

RECEIVER

By: /s/ Blair Zanzig

(One of Its Attorneys)

Blair R. Zanzig (No. 6273293)

John F. Hiltz (No.6289744)

HILTZ & ZANZIG LLC

53 West Jackson Blvd., Suite 205

Chicago, Illinois 60604

Telephone: 312.566.9008

Fax: 312.566.9015

Counsel for Robb Evans & Associates LLC,

Receiver


receiver's motion to approve notice of distribution to the ftc ......certain natural cures...

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