Court Finds Marketer of Alcoholism Cure in Contempt for Violating 2012 Order
Failing to comply with a court order might get one former businessman tossed in jail.
A federal court has found Robert Douglas Grotzer in contempt of court for violating a 2012 order that required him to turn over nearly $732,500 to compensate victims of his phony alcoholism cure scam.
The original order came as part of a Federal Trade Commission (FTC) complaint that charged Grotzer and his associates lured consumers with deceptive claims on their websites, including that their program cures alcoholism while allowing alcoholics to drink socially and is scientifically proven to cure alcoholism.
The ads also falsely claimed that the program was virtually free; that the company had a team of doctors with expertise in addictive diseases; and that members' personal information and health details would be kept private.
The defendants were ordered pay more than $700,000 and were banned from marketing or selling any treatment or cure for alcoholism, drug addiction, or any other health-related problem.
In the most recent ruling, the court found that Krotzer's claims that he is not able to comply with the payment requirements were not credible. The court also found that Krotzer failed to disclose what happened to the company's ill-gotten gains, and failed to comply with a range of other provisions in the 2012 order.
The judge ruled that to avoid going to prison, within 60 days Krotzer must: 1) pay $8,099 in proceeds received by Krotzer from his alcoholism cure customers after the 2012 order's entry; 2) produce comprehensive documentation of his inability to pay the full $732,480 judgment; 3) provide a detailed accounting of all money Alcoholism Cure Corporation or Alcoholism Cure Foundation received after the order was entered; and 4) provide a number of other financial details, including any assets transferred to his wife after 2005.