Leaked text messages have exposed television psychologist Dr Phil McGraw allegedly promoting a controversial financial scheme that encourages wealthy individuals to declare bankruptcy as a path to "financial freedom".
The messages, obtained by The Independent, show the celebrity doctor enthusiastically endorsing the strategy to social media influencers during a conference in the Bahamas. The scheme purportedly allows participants to shield assets from creditors while maintaining lavish lifestyles.
Questionable Financial Advice
In the exchanged texts, Dr Phil can be seen championing the bankruptcy strategy, telling one influencer: "This will be the most important thing I have ever taught you... This will set you free." The approach involves filing for personal bankruptcy protection while allegedly using legal loopholes to protect luxury assets.
Financial experts have raised serious concerns about the ethics and legality of promoting such schemes, particularly to individuals who may not genuinely qualify for bankruptcy protection under US law.
Celebrity Endorsement Controversy
The leaked correspondence reveals how Dr Phil connected influencers with lawyers specializing in this approach. One message shows him writing: "I have people that... can walk you through the process. They have done it for a lot of famous people."
This development raises questions about celebrity responsibility when endorsing financial products and strategies, especially those that could have severe legal consequences for participants.
Legal and Ethical Implications
Bankruptcy fraud is a serious federal offence in the United States, carrying potential penalties of up to five years in prison and substantial fines. Legal experts suggest that promoting bankruptcy as a wealth protection strategy rather than a legitimate financial remedy could attract regulatory scrutiny.
The revelation comes at a sensitive time for the television personality, whose popular show has long positioned him as a trusted advisor on life and financial matters.
Neither Dr Phil nor his representatives have provided substantive comment on the leaked messages, leaving many questions unanswered about the nature and legitimacy of the promoted scheme.
