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Don Lapre, the self-proclaimed “King of Infomercials” was arrested last month after failure to appear in court for an indictment on 41 counts of mail fraud, wire fraud, money laundering, and conspiracy.  Lapre, who made a name for himself selling As Seen on TV money-making schemes, faces fraud charges relating to the marketing of “The Greatest Vitamin in the World” as both a product and a multi-level marketing venture.  On his website, Lapre proclaims his innocence, stating:

“I tried to create the best product on earth, paid out millions, made very little trying to make it a success, had attorneys review my entire company, paid out millions in refunds, tried to make the commission and products better every single year, and in spite of all that, I have been accused of something I did not do.  I did not have the perfect company but never once did I allow one thing to be done that would violate any law.”

Apparently, the law disagrees.  Don Lapre is accused of bilking nearly $52 million from more than 225,000 investors for a business that paid out only $6.3 million in commissions.  According to Quackwatch, in 2006 the Better Business Bureau cited Lapre’s company for failing to substantiate the following advertising claims related to The Greatest Vitamin in the World:

• “Our company will pay you $1000 up front or up to $200 a month for the rest of your life every single time you get just 20 new people to try our amazing vitamin.
• “Each week we pay you on all the revenue earned the week prior! This is the easiest way in the world to start generating $1000 checks over and over again!”
• “Our top people have made thousands and thousands of dollars doing this!”
• “Each month you get just 100 new vitamin clients, we pay you a $5000 bonus! And the top two Independent Advertisers who create under 100 new vitamin clients also get a $5000 bonus!”
• “Endorsed by the NBCCA representing most teams in the NBA.”
• “We use the highest grade and most absorbable nutrients known to man.”

In 2005 and again in 2006, the Food and Drug Administration warned Don Lapre against making drug claims about his vitamin.  Specifically, Lapre claimed that The Greatest Vitamin in the World could be used to fight diabetes, stroke, heart disease, insomnia, cancer, and arthritis.  The FDA admonished, “Your products are not generally recognized as safe and effective for the above referenced conditions.”  In 2008, the state of Maryland forbade Lapre and The Greatest Vitamin in the World LLC from doing business in the state, with the Maryland Department of Securities asserting that the company was not licensed to sell business opportunities, and that Lapre had failed to issue refunds to dissatisfied customers.

In June 2011, Lapre was indicted in Phoenix, Arizona, on 41 counts of fraud.  He did not appear for his court date and was arrested on June 27.  Lapre was arrested at a fitness center where he had allegedly been living for two days prior to his arrest.  An FBI wanted poster featuring Lapre described the “King of Infomercials” as possibly suicidal, suffering from depression and anxiety.  At the time of his arrest, Lapre had self-inflicted knife wounds to the groin.

These most recent legal and financial difficulties are not the first for Lapre:

• 1988 – declared Chapter 7 bankruptcy
• 1990 – charged with fraud for “Unknown Concepts,” a credit repair agency that claimed to help customers get credit cards, but instead provided a listing of credit card providers; forced to pay civil penalties and restitution
• 1994 – forced to pay the state of Arizona $45,000 in unemployment and withholding taxes he neglected to pay in 1993 and 1994
• 1995 – the Michigan Attorney General took action against Lapre for failing to register his business; an Assurance of Discontinuance prohibited Lapre from doing business in the state until it was properly registered and restitution and payment of fees was made
• 1997 – the IRS placed a lien of nearly $1 million against Lapre and his wife for failure to pay delinquent taxes
• 1999- filed Chapter 11 bankruptcy

As Seen on TV business opportunities and money-making ventures offer the promise of fulfilling your financial dreams.  However, as with any commercial venture, the adage “Buyer Beware” holds true.  A quick check with the Better Business Bureau would have helped Lapre’s alleged victims from falling prey to his business scam.  Infomercial ventures are no more or less susceptible to fraud than a brick and mortar business.  Legitimate infomercial business opportunities exist through financial coaching, real estate investing tips, and even IRS tax help.  Take time to investigate any opportunity before plunging ahead.  Remember–if it sounds too good to be true . . . well, there may just be a reason for that.