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.

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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.