How Did Heidi Diaz Profit From her Deception?
Heidi Diaz testified that her gross income for Kimkins.com for 2006 was approximately $50,000. Her best estimate of income earned by Kimkins.com from January through November 2007 was $1.5 million. She claimed $878,000 in profit, and from that, she purchased a home for cash in the amount of $444,000. She also stated that she paid $700,000 in taxes to the federal government and $100,000 to the State of California for the Franchise Tax payment. She claims Clexus New Media, the computer programmer/web designer, received approximately $400,000.00 in income.
She planned to pay refunds through an account at Bank of America, which totaled approximately $38,000.00. She claimed that the total members who subscribed to Kimkins.com as of November 12, 2007 ranged between 37,000 and 40,000. She claimed affiliates were paid a total of $55,000.00. Up until the date of her first deposition, all payments to Kimkins.com were made by PayPal.
Were the Representations Made By Heidi Diaz On November 12, 2007 on the Kimkins Website Truthful?
Heidi Diaz admitted that she did not lose 198 pounds in 11 months, but claimed to lose 100 pounds in six months. However, when pressed on this issue, she admitted that she had no photographic evidence of said weight loss. She never used her own website to record the alleged weight loss. She made no written record of the weight loss referenced in her website. She also claimed that there are no witnesses that will testify to her alleged weight loss. Incidentally, the deposition of Brandon Diaz revealed that he did not witness his mother losing 100 pounds at any time. She last weighed herself on November 11 and at that time she weighed 294 pounds. She claimed to have lost 23 pounds in the last two weeks as of November 12, 2008.
Why Did Heidi Diaz Block Members?
She claimed that certain members were blocked from access to chat with other members because they were “troublemakers”. Troublemakers could retain access to the full website, diet, and food list, but were restricted from the community areas. She claims that the term troublemaker was defined by each administrator. Accordingly, administrators were given the power to block member’s access to the community areas. There were no written parameters for blocking members or any oral instructions by Heidi Diaz. She admitted to using moles on the website, which she defines as “somebody who operates quietly to go through the website to make sure everything is operating.”