Kirstie Alley’s diet company sued by victims of Scientology Ponzi scheme

In 2010, Kirstie Alley started a diet supplement company called Organic Liaison. The program offered vitamin supplements and juice cleanses that were suspiciously similar to the vitamins used in a Scientology ritual called the “purification rundown”. Kirstie is a defensive member of the Scientology cult, and of course her company has deep ties to Scientology as well.

Kirstie was sued by a customer in 2013 for deceptive business practices and paid out an over six figure settlement. Despite fronting a weight loss scheme, Kirstie’s weight has yo-yoed several times over the years. That’s pretty much all she’s known for at this point. She’s like the worst diet spokesperson, but somehow she got hired by Jenny Craig, and Jenny Craig eventually bought her company out.

Well surprise, Alley has been named as a defendant in a new lawsuit claiming that she stiffed investors in her company. This is a somewhat complicated story in that one of Kirstie’s main investors, a Scientologist named Michelle Seward, is accused of running a Ponzi scheme. Seeward gave Kirstie a million to start her business and transferred an additional $400k to a trust that Kirstie ran. The defendants claim that Seeward never refunded their $500k investment. They also allege that Kirstie never paid Seeward or other investors (including Nancy Cartwright, who voices Bart Simpson) back for the significant loans they gave her business. What’s more is that Kirstie’s company is of course incredibly shady. Kirstie paid herself $750k-$1 million a year (depending on which account you believe), and her CEO got $450k.

Alley and Organic Liaison are named as defendants in a lawsuit filed in Chatsworth, California, over an alleged Ponzi scheme spearheaded by former prominent Scientologist, Michelle Seward. Jeffrey and Marguerite Stabile loaned approximately $500,000 of their life savings to Seward, and are suing her and other co-defendants over claims she used their money to fund her luxurious lifestyle as an A-list Scientologist.

According to the documents, Seward invested $1 million in Alley’s company in 2009. “Another investor, Nancy Cartwright, made similar investments of $2 million in the same company,” the documents state.

But the bombshell documents state that “Organic Liaison returned nothing to any of the investors. In three years, their entire investments were extinguished.”

“In Alley’s words, ‘We were non-profitable,” the documents continue. “Alley contends that she has negotiated with the Jenny Craig company to sell Organic Liaisons, LLC products, with the profit to be shared with Organic Liaison investors. But she will not divulge what the agreement was. Nonetheless, she acknowledges the unit holders got no money back. Nor were they included in the negotiations.”

At the same time, Rob Bastian, the lawyer for the couple suing Alley, also claims that Alley paid herself roughly $1 million per year to be the company spokesperson, without consulting investors. “Alley has testified that it was $750,000,” he admitted.

In one transaction, the documents claim, one of Seward’s companies paid $400,000 to the Kirstie Alley Family Trust. The plaintiffs contend “that the funds the trust received are related to a premium financed life insurance transaction organized by the defendant and collateralized by $1,000,000 of investor funds.”

They claim Alley “either actually knew, constructively knew, or should have known that the investment of $1 million, and the transfer of $400,000 into her trust … was illegal, fraudulent and otherwise improper, and at the expense of persons such as the plaintiffs and those similarly situated.”

[From two stories on Radar Online]

None of this seems unbelievable where Kirstie and Scientology “investments” are involved. These people give large percentages of their income to the cult and the have an incredibly warped sense of right and wrong. I’m just surprised Kirstie has been as successful as she has despite the kind of crazy unhinged sh*t she usually says and does. Diet scams sell though and so do get rich quick schemes.

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18 Responses to “Kirstie Alley’s diet company sued by victims of Scientology Ponzi scheme”

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  1. Neah23 says:

    You mean something associated with Scientologist is incredibly shady ? I’m shocked said no one ever.

    • smith says:

      Pic #3 looks like budget Boris and Natasha come to audit us all with their Xenu stares and word salads!!!!


      • CG says:

        Is the guy in pic 3 actually Jon Knight from the New Kids on the Block? It looks just like him. If he’s a Scientologist, I’m going to be incredibly sad! 😢

      • Deb says:

        It definitely looks like him but I can’t imagine him being a Scientologist since he is openly gay, and Scientology treats homosexuality like it’s some sort of horrible disease.

  2. Mrs Odie says:

    She looks like Fergie.

  3. JH says:

    She’s a despicable human being. Just vile.

  4. Hautie says:

    I thought Nancy Cartwright had given practically all her Simpson money, to the Cult as it was… yet some how she ends up giving more, for this shady diet ponzi game? Good grief. It is time for Nancy to cut them all off.

    (After looking at the pictures of Kirstie… it appears that she might have had that under chin/neck lift done. She has not aged badly at all… except her neck had fell down on her. But here in these pictures… it looks like she had it tucked up finally.)

    • chaine says:

      She looks fantastic for age 64, especially when compared to all the actresses in their 40’s and 50’s who have absolutely ruined their faces with injectables and botox.

  5. doofus says:

    she always looks like she’s smelling something bad with that perma-sneer she’s got…

  6. Katy says:

    I can’t believe I used to like her when she was on Cheer’s. She makes me sick.

  7. db says:

    Right. Because who would ever ever believe that any business venture led by Kirstie Alley would be sketchy?

  8. Erinn says:

    I still want that green jacket. But god, I can’t stand her

  9. Kym says:

    This story pleases me so on this beautiful Monday morning.

  10. jferber says:

    Wow, just wow. It seems like her intent all along was to defraud people. She should have to make reparations and even serve jail time (like that would ever happen). At least she should not profit from her crimes.

  11. Belle Epoch says:

    So this is what getting “clear” does for you?

    She will NEVER admit any wrongdoing. It doesn’t even exist in her mind.

  12. CharlotteCharlotte says:

    So much entitlement. I used to really like Kirstie, and even finding out she was a member of Co$ didn’t stamp it out; it was the irrefutable proof of what a horrible person she is that made me hate her. She deserves jail time.