Life Coaches Accused of Running Ponzi Scheme

Coral and Mac Grant

Coral and Mac Grant

The owners of a successful life coaching firm are being sued by clients who claim they used a string of shell companies to run a Ponzi scam that earned them anywhere from $8 to $20 million.

CourthouseNews.com is reporting on the case involving Coral and Gary “Mac” Grant, owners of The Secret to Life Coaching, and an associate named Heather Perdue who are facing fraud, theft, and racketeering charges bilking clients out of millions of dollars.

According to the Life Coaching website, it’s main mission is to “help people design and live the life of their dreams” by putting into practice the “secrets” Coral learned that enabled her to live life with a purpose and in a way that made all of her dreams come true. She relies on coaching, a TV and radio show, articles, speaking engagements and writings aimed at teaching people her secrets.

Her husband, Mac Grant, calls himself a successful entrepreneur, Master Coach and leader in a network marketing company

As Courthouse News reports, plaintiffs, Cheri Lucas and April Fisher who are representing “all persons who entered into ‘coaching contracts’ or ‘investor contracts’” with the Grants and their companies, they say the Grants used their companies to sign up independent coaches under commission agreements known as “coaching contracts”. Coaches were then promised a commission or fee for each life coaching client they signed up, for signing up other coaches, and for teaching life coaching to clients. They also invited their members to become “investors”, agreeing to give the couple flat sums in exchange for non-specific returns, according to the complaint.

Lucas and Fisher they never saw any returns on their investment.

This is a classic Ponzi scheme which is a fraudulent company that relies on money deposited by investors rather than from profit earned by their investments.

“The Grants live a lavish lifestyle with their ill-gotten gains,” the complaint states. “They lease multiple mansions around the United States, fly around the country in chartered private jets, and lease or own luxury vehicles (Bentleys, for example). Put simply, Coral and Mac Grant arc con artists living high on the hog with the millions they have stolen from their unsuspecting contractors and investors.”

The Grants also violate federal laws by not registering securities offerings for their companies, by not filing Form Ds for the offerings, and by filing fraudulent or incomplete tax returns to cover up their illegal income, according to the complaint.

Meanwhile, they continue to recruit new coaches, clients and investors to make up for the money they pilfer from their companies.

Even more revealing is how Coral Grant brags about her mentor, Kevin Trudeau, who is currently serving a 10 year sentence for contempt of court. Trudeau, whose infomercials hawked bogus products such as Natural Cures They Don’t Want You to Know About and The Weight Loss Cure They Don’t Want You to Know About, has a long rap sheet of convictions from larceny to credit card fraud.

Lucas and Fisher refer to Trudea as “a career fraudster and federal Felon” in their complaint, citing a visit by Grant to Trudeau’s prison cell for advice about her scheme.

“In fact, Coral is so close to Kevin Trudeau that she has raised tens of thousands of dollars for the ‘KT Legal Defense Fund.’ ‘KT’ stands for Kevin Trudeau,” the complaint states.

When Courthouse News attempted to contact the Grants for comment through their website, they received an autoreply stating that The Secret to Life Coaching Company has been dissolved and the Grants are now working out of the Infinity Manifestation company.

Lucas and Fisher are seeking at least $10 million in actual and statutory damages for fraud, theft, racketeering, breach of contract, breach of fiduciary duties, gross negligence and deceptive trade, plus $20 million in punitive damages and $250,000 in attorney’s fees.

 

Comments are closed.