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The Russell Brunson Show

The Propaganda Playbook: AI Fraud (He Made $1.8 Billion With 800 Fake Doctors) - #Marketing - Ep. 126

The Russell Brunson Show

Russell Brunson

Marketing, Business, Entrepreneurship

4.8982 Ratings

🗓️ 4 May 2026

⏱️ 17 minutes

🧾️ Download transcript

Summary

There’s a moment when the future shows up and the people writing about it forget to check who’s actually building it. The New York Times just profiled a guy who built a $1.8 billion company from a house in LA with two employees and a stack of AI tools. The internet lost its mind. Sam Altman said he wanted to meet him. Inc. ran a glowing follow-up. There was just one problem - the entire customer-acquisition machine was built on more than 800 AI-generated fake doctors selling real weight-loss drugs to real people on Facebook, and the FDA had already sent a warning letter six weeks before the article ran. In this episode, I walk you through what’s actually happening underneath the headlines - fake doctors with profiles claiming to be from Kiev with interests in Bronze Age archaeology, AI-generated before-and-after photos so sloppy that one “patient” has her fingers melted into her phone, FDA warning letters the Times never mentioned, and 1.6 million patient records exposed in a data breach at the clinical partner. Then I trace it back 100 years to Edward Bernays, who invented this exact technique - “manufactured third-party authority” - by getting real doctors to endorse cigarettes and bacon. Same playbook. Same psychology. Same manipulation. Except now AI made it infinitely scalable, infinitely cheaper, and the doctors don’t even have to exist. Key Highlights: ◼️The full $1.8B AI fraud breakdown - 800 fake doctor profiles (including a “Professor Albus Dumbledore”), AI-generated patient photos with fingers melted into phones, 5,000 active Facebook ads, an FDA warning letter the New York Times never mentioned, and a 1.6M-record data breach at the clinical partner ◼️Why Edward Bernays’ 100-year-old “Manufactured Third-Party Authority” technique - the same one that sold cigarettes and bacon - is the exact playbook this company just ran through AI, except infinitely cheaper and scaled to people who never existed ◼️The on-the-record prediction I’m making: the FTC shuts this company down within 12 months (and why every entrepreneur celebrating it should be thinking about what “compliance from day one” actually costs) ◼️The 4-part playbook for building real authority the legal way - real testimonials from real customers, real expert relationships, knowing the FTC and FDA rules before you run your first ad, and the question that tells you whether your product is actually good enough ◼️Why every legitimate marketer pays the price when one billion-dollar fraud breaks - and the comment I want from you if you’re one of the entrepreneurs building businesses the right way At the end of the day, this episode isn’t really about one founder or one company. It’s about what happens when the people writing the headlines stop checking the work, and the rest of us treat that omission as proof of the future. AI doesn’t have a conscience. The technology doesn’t care if the doctor in your ad exists. You have to be the conscience. So the real question is: now that the same tools that build a legitimate business can build a billion-dollar fraud just as fast, are you the kind of entrepreneur who’ll be the conscience the technology doesn’t have - or the kind who finds out the hard way? ◼️If you’ve got a product, offer, service… or idea… I’ll show you how to sell it (the RIGHT way) Register for my next event → https://sellingonline.com/podcast ◼️Still don’t have a funnel? ClickFunnels gives you the exact tools (and templates) to launch TODAY → https://clickfunnels.com/podcast Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Do you have a funnel, but it's not converting? The problem 99.9% of the time is that your funnel

0:05.0

is good, but you suck at selling. If you want to learn how to sell so your funnels will actually convert,

0:10.0

then get a ticket to my next selling online event by going to sellingonline.com slash podcast. That's

0:14.9

selling online.com slash podcast. This is the Russell Brunson show. The New York Times just ran a story about a guy who

0:25.3

built a billion dollar company with AI, two employees, $20,000, and a house in Los Angeles.

0:30.7

And the internet lost its mind. Everyone was sharing it. This is the future AI changes everything.

0:35.9

And Sam Altman from OpenAI said said he wanted to actually meet the guy

0:39.4

There's just one problem. He did it by creating over 800 fake doctor profiles on Facebook using AI to generate fake before and after weight loss photos

0:47.4

Selling drugs the FDA already warned him about six weeks before that article even came out and the New York Times didn't mention any of it.

0:54.6

This is the biggest propaganda story in business right now.

0:57.5

And the technique he used, manufacturing fake experts

1:00.1

to sell a product was invented by the same man

1:02.5

that I've been teaching about during the series.

1:04.4

Edward Bernays literally wrote the playbook for this in 1920,

1:07.8

except for Bernays used real doctors,

1:09.9

and this guy used AI to make them up. This is the propaganda playbook where I take the biggest stories in the news and decode the propaganda techniques that are hidden inside of all of them. And then I show you how to use the ethical versions of those same techniques to grow your business. So that said, let's get right into it. Okay, so let me tell you the story the way it was told to the world. And then I'm going to show you what actually happened underneath. On April 2nd, the New York Times published this glowing profile of a guy named Matthew Gallagher. The headline was basically a $1.8 billion company with just two employees. In the age of AI, it's possible. And the story was incredible. Gallagher is a guy from Los Angeles, self-taught entrepreneur. He took $20,000, his brother and a stack of AI tools, ChatGBT, GbT, Claude, Grock, Mid Journey, Runway, and he built a telehealth company called MedVee that sells compounded GLP1 weight loss drugs online. Same active ingredients as Lysmpic and Weigovie, but cheaper. You sign up,

2:02.0

do an online consultation and the drugs get shipped to your door. The numbers were staggering.

2:05.7

In his first full year, Medvi did $401 million in revenue. Net profits of 65 millions with a

2:11.9

16.2% profit margin and 250,000 customers. And the company is projecting 1.8 billion for this year.

2:19.2

The Times verified the financials. LinkedIn was going crazy. Every

2:22.4

entrepreneur on the internet was sharing it. This is what AI can do and the future is here.

2:26.8

Sam Altman said he'd like to meet this guy. Inc. Magazine did follow up and it was the biggest

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