Kate Somerville on Choosing a Path and Learning from Scams

Summary

Money Rehab with Nicole Lapin:
"Kate Somerville on Choosing a Path and Learning from Scams"
Episode Date: October 14, 2025

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Episode Overview

This episode dives deep into the journey of Kate Somerville, the entrepreneur behind Kate Somerville Skincare. Host Nicole Lapin and Kate discuss overcoming personal adversity, handling money mistakes (including falling victim to a major scam), and forging a fulfilling path despite major life challenges. Through storytelling and candid reflection, the episode highlights lessons about resilience, the power of choice, and practical financial wisdom—especially for those healing from tough experiences or looking to protect themselves from modern scams.

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Key Discussion Points & Insights

1. "Never Have I Ever": Money Edition

(Starts at 04:25)

• Nicole kicks off with a game of Never Have I Ever focusing on financial experiences.
• Kate’s honesty: She’s negotiated contracts, opened an IRA, overdrafted accounts, bought lottery tickets, written a will, invested in cryptocurrency (“because of my 19-year-old son”), founded companies, and faced buyer’s remorse.
• Notable Quote:
  • “We just got—my husband and I got scammed for the first time, and we feel really stupid.” —Kate, 05:34

2. Kate’s Scam Experience & Lessons Learned

(Scam story begins at 06:36)

• Kate shares the recent story of being scammed when trying to buy a ski boat online via Boat Trader.
  • Her husband, a diligent researcher, found a “too good to be true” deal, communicated with a seller, and wired the money after viewing an elaborate (but fake) website.
  • The boat never arrived; after excuses and the disappearance of the website, they discovered it was a scam.
  • They reported it to the FBI, but were told there’s no real recourse.
  • Kate warns that such scams are common, especially with high-ticket “adventure” items (boats, RVs) during the pandemic era.
• Concrete tips:
  • See big purchases in person whenever possible.
  • Research sellers deeply—look for scam red flags, check for reviews or complaints, verify legitimacy.
  • Trust your gut: “If it’s too good to be true, don’t do it.”
• Notable Quote:
  • “We contacted Boat Trader and we lost all of our money, and there’s no recourse… it was a considerable amount of money, so… and it’s gone. Like, there’s no recourse for us, apparently.” —Kate, 09:24

3. Growing Up in Chaos & The Power of Choice

(Kate’s upbringing: 11:57)

• Kate recounts a turbulent childhood: her mother was a severe alcoholic, leading to instability and periods of homelessness.
• She lived with her father, but struggled with a tough blended family situation.
• At age 15, a counselor (concerned for her wellbeing) encouraged her to leave home. She began “couch surfing.”
• At 19, her life changed after meeting Barbara Wells, a woman with cancer who offered tough but unconditional love.
  • Barbara’s pivotal advice: “You have a choice now. You’re 19, you’re an adult. You can choose what your life is set to be.”
  • This prompted Kate to proactively re-design her life, moving to a new town and working multiple jobs to sustain herself.
• Notable Quote:
  • “A light bulb went on for me and I changed my life right after that... when I said, no, I’m going to live and design it the way I wanted to... I just kept, you know, following the signs of goodness and going for what my vision was in my head.” —Kate, 14:49–15:45

4. Turning Adversity into Mentorship: Partnership with Foster Nation

(Discussion at 16:20)

• Kate discusses her deep empathy for youth aging out of foster care, as she can relate to instability and trauma.
• Her company partners with Foster Nation to mentor these young adults.
• Notable Quote:
  • “All of the negative in my life is now turning into helping somebody that may have been in my shoes—or much worse, let me tell you. So, super exciting.” —Kate, 16:58

5. Money Mindset and Financial Healing

(Money beliefs and advice, 18:24 & 23:13)

• Both Nicole and Kate share how childhood trauma impacts their relationship with money—fear, shame, and the impulse to hoard.
• Kate notes that even as a successful founder, money remains “a scary thing” and that she had to learn to surround herself with trustworthy advisors.
• Practical tip: Money isn’t evil—it’s a creative tool. The goal is not to be frivolous, but also not to freeze in fear.
• Reframing scarcity:
  • Nicole and Kate agree on the importance of reframing scarcity mindsets: "If I survived those hard days once, I could survive again."
• Notable Quote:
  • “Money is not evil. It’s a creative tool to be able to be creative. It’s what you do with it.” —Kate, 19:16

6. Advice to Her Younger Self: Don’t Be Frivolous—Invest for the Long Run

(Advice section, 23:13)

• Kate recalls a Warren Buffett anecdote about “the $30,000 haircut”—a metaphor for compound interest and lost investment opportunities.
• She urges younger listeners to save and invest instead of spending on fleeting needs.
• She references her late father-in-law, who despite career success, lived with financial anxiety due to lack of savings.
• Notable Quote:
  • “The amount of money that I wasted on frivolous things—like if I would have just saved a little and put it into a stock, it would be so much bigger today… think about your future. Do you really need it? Like, if you don’t need it, put it somewhere where it can grow.” —Kate, 24:12

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Memorable Quotes & Timestamps

• “We lost all of our money… and there’s no recourse for us, apparently.” —Kate, 09:24
• “A light bulb went on for me… no, I’m going to live and design it the way I wanted to.” —Kate, 15:10
• “All of the negative in my life is now turning into helping somebody that may have been in my shoes or much worse.” —Kate, 16:58
• “Money is not evil. It’s a creative tool… It’s what you do with it.” —Kate, 19:16
• “If I survived those hard days once, I could survive again.” —Nicole & Kate, 21:26–21:38
• “Do you really need it? Like, if you don’t need it, put it somewhere where it can grow.” —Kate, 24:36

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Segment Timestamps

• 04:25 — Money Rehab x Never Have I Ever
• 06:36 — Kate’s Scam Experience & Cautionary Tips
• 11:57 — Kate’s Upbringing: Chaos, Survival, & the Power of Choice
• 16:20 — Giving Back: Partnering with Foster Nation
• 18:24 — Money Mindset after Trauma: Fear, Creativity, & Healing
• 23:13 — Advice To Your Younger Self: Save and Invest, Not Spend

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Tone & Final Thoughts

Candid, supportive, and practical, the episode balances real financial caution (especially re: online scams) with inspiration and emotional resilience. Kate’s story is a testament to the power of personal agency, the value of mentorship, and the ongoing journey of healing—financially and emotionally. Nicole grounds the conversation in real talk, not sugarcoating the challenges but offering hope that transformation, both personal and financial, is possible.

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Summary prepared for Money Rehab listeners—so you can take Kate and Nicole’s real talk to the bank (and avoid getting scammed on your next major purchase).

Transcript

[A]

I am so excited to head up.

[B]

To Big Sur with my husband this fall. We are celebrating our anniversary and while I will miss the little mush so much, we are also really excited to have a little parents time.

[A]

We deserve that. But you know it got me thinking.

[B]

About this feeling when you walk out of the door for a trip and you wonder what your blaze is doing while you're gone. Well, it turns out it could be working for you. I've been hosting on Airbnb for forever now and I tell all of my friends to do the same because it's an amazing way to make passive income from an asset. You already have your home.

[A]

But some of my friends who are.

[B]

Super busy worry that hosting on Airbnb would feel like having a second job. And that's when I tell them about Airbnb's co host network. Anything you don't have the bandwidth to do, a co host can handle for you. They can create your listing, manage reservations, manage guests, provide on site support, even handle design and styling. So whether you're traveling for work or you're escaping the winter, or if you have a second place that just sits empty way too often, your home doesn't have to sit on the sidelines. It's instead you can earn a little extra cash without adding another job to your plate. Find a co [e-mail] host imagine trying to become a pro athlete without having a coach. It sounds crazy, right? We all need help leveling up in areas that matter to us. And that's why one of the smartest financial moves you can make is working with a certified financial planner. Domain Money CFP professionals don't just hand out generic financial advice. They help people get on track for early retirement, fix messy investment locations, and figure out the perfect timing for major purchases like buying a home. What I love about their approach is that they don't do cookie cutter financial plans. They actually dig into what you are trying to achieve and optimize everything around your specific goals. Here's what you need to do. Book a free strategy session to see if they're a good fit for your situation. Zero pressure, just real advice tailored to where you're at financially. You can get started [e-mail] moneyrehab and here's what I totally respect about them. They use transparent flat fees so you know exactly what you're paying upfront. No sneaky percentage fees eating into your returns or surprise charges that derail your financial progress. Your financial plan isn't some one and done document as your Life changes. They're right there helping you adjust your strategy so you stay on track towards your money goals. Domain gives you something most people never have, a step by step financial plan that actually makes sense and doesn't make your brain hurt. So get started today and book your free strategy session@domain money.com, i am not a real client of Domain Money. Via Money Rehab, I receive compensation and have an incentive to promote Domain Money. See important disclosures at DMNMNY co X.

[A]

Hey guys, are you ready for some Money Rehab?

[C]

Wall street has been completely upended by an unlikely player, GameStop.

[A]

And should I have a 401k because.

[C]

You don't do it? No, I know, girl, you think the.

[A]

Whole world revolves around you and your money.

[C]

Well, it doesn't charge for wasting our time. I will take a check.

[A]

You recognize her from anchoring on cnn, CNBC and Bloomberg.

[C]

The only financial expert you don't need a dictionary to understand.

[A]

Nicole Lapin. As you know, on Money Rehab, we feature change makers, public figures making change in every sense of the word and.

[B]

Along the way, have been in or.

[A]

Might still be in Money Rehab.

[B]

Today I'm talking to Kate Somerville, the founder and namesake, of course, of the skincare brand.

[A]

Kate is a really smart, savvy entrepreneur and I'm excited to have her on.

[B]

The show because I always learn something.

[A]

Each time I talk to her. But I also wanted to have her.

[B]

On the show because she has such an inspiring story. She was dealt a really difficult hand early in life, but in the span of one crucial moment, she decided to try to turn her life around, and she did.

[A]

I think her story is helpful for.

[B]

Those who are going through something challenging or for anyone who has made it.

[A]

Through a challenging time and is still.

[B]

Healing from the battle wounds. But I'll let her tell it. So, Kate, welcome to Money Rehab.

[A]

So before we dive in, we start with a quick round of Money Rehab. Never have I ever. Have you played Never have I ever before.

[C]

I have not, so I'm excited to play it. Okay, good.

[A]

Well, normally it has alcohol involved, but unfortunately we don't have that now. So if you have done something, just say, I have.

[B]

And if you haven't, just say I haven't.

[C]

Okay, great. I'm ready.

[A]

Never have I ever negotiated a contract.

[C]

I have.

[A]

Never have I ever opened an ira. I have. Never have I ever overdrafted.

[C]

Oh, I have. Yes.

[A]

Never have I ever bought a lottery ticket.

[C]

I have.

[A]

Never have I ever written a will.

[C]

I have written a will. Yeah.

[A]

Never have I Ever invested in cryptocurrency?

[C]

I have. You have to my 19 year old son. Yeah.

[A]

Never have I ever had buyer's remorse.

[C]

Oh, I've had buyers remorse. And I have a story for you because I. We just got. My husband and I got scammed for the first time and we feel like, we feel really stupid. So I'll tell you about that story maybe in this podcast so people can watch out for it.

[A]

Yes. Anything you can do to help others because the scammers are getting so smart. By the way, I did ambush a scammer on this show. It was hilarious. Never have I ever argued with a romantic partner about money.

[C]

We have, but we were a team. You know, we, we. If, if he wants to do something, we mull it over. We're a really good team and we don't hide stuff from each other. That's the other thing. So we're super transparent.

[A]

Never have I ever founded a company.

[C]

I have founded a company, actually, several. So. Yep.

[A]

So, Kate, tell me about this scam.

[C]

I grew up water skiing. Like, I love being on a boat. Like it's just kind of my thing. Right. I love being in a lake. I love Lake Powell. And so my husband went to surprise me with a ski boat and he went and researched. He's a big time researcher on like, he's bought all of our cars and our motorcycles and because we're kind of active family. And he bought this boat and it was on Boat Trader. And he was messaging with the guy and talked to, talked to him a couple of times. They had an elaborate website and we ordered it, we wired the money and they said, okay, it'll be there in five days. We paid shipping and we got a notice the next day because it didn't show up. And I instantly was like, there's something really wrong. And he's. Then they, they emailed us back and said, the boat has been in an accident. No need to do anything. Insurance is going to take care of it. You'll have your money refunded within five days. All the websites got taken down except the Boat Trader ad. It's still up. We contacted Boat Trader and we lost all of our money and there's no, there's no recourse. We, we, we, we called the FBI because it's interstate. And this literally just happened last, last week. And last night my husband bought us another boat and it arrived today. So the boat situation, I have buyer's remorse. Like it's, it kicks my husband more. He, like he can't sleep. He's he's like, I can't believe this happened. So just be careful out there. It's getting really complicated. There's. There's multiple people. My son went online. He's really good online, and he found out that the scammer was going to the Phoenix Library, and the Phoenix Library there, that's where they're doing their computer work. So nobody can trace them. They close the account. Then as soon as the money hit, they closed the account. Wells Fargo account, and it's gone. And all we did was make a report to the FBI. But my accountants, like, there's so many of these going on right now, especially through Covid, and especially through RVs, boats, trailers, because there's been this uptick and everybody wanting to find something to do instead of travel. So boat trader is having a problem keeping these things off, off their site. So be careful, you guys. And it was a considerable amount of money, so. And it's gone. Like, there's no recourse for us, apparently.

[A]

And Wells Fargo didn't help nothing.

[C]

Not nobody has helped us. Yeah.

[B]

Yeah.

[A]

So what would be the tip to give others looking for a big purchase online?

[C]

Well, the sad thing is, is you can't even. You can't you go see the boat, like, for us, or whatever you're purchasing, go see it, make sure it exists because. And. And look online. Like, if my husband would have dug a little online, there were keys to, like, this was a scam. This was too good to be true because the boat was priced, like, really good. So if it's too good to be true, don't do it. The other thing I can say is this boat was in. Apparently in Florida, and the boat that we bought was in Florida. And so that's the hard part. But if you can make sure it's a true owner and you speak to the owner. Yeah. So just. Just follow and do your research, like, check the ad to see if there's any kind of scam things, because a lot of people have been scammed by this. This ring. There was hundreds of people. And, you know, for me, I. I'm so grateful that I'm a. Financially. Okay. But some of these people, this was, you know, this was a lot of money to us for sure, and it stung, and it was awful. But some of these people are losing money that they really can't afford to lose. So just be careful out there.

[A]

Yeah, absolutely. Thank you so much for that cautionary tale. And your namesake company, of course, starts with such an inspiring story. It is truly, Kate, a Real life example of how someone can defy difficult circumstances. We've talked about this before, but I'd love if you can share your story with our audience because they think it.

[B]

Can speak to a lot of people.

[A]

Can you tell me about your family life growing up?

[C]

I grew up, two parents, both teachers. Mom at 9, left my dad, and I stayed with my dad because my mom was definitely going down an unstable path and she became a severe alcoholic. And when I say, like, severe, like, I didn't know the bottom could be the bottom. Like, I thought the bottom was, you know, several layers before it got to such crazy bottom. But my mom ended up homeless. Not a tooth in her head. There was times where I would drive by and she was on a bus stop, like, literally out of her mind. I grew up very tumultuous. I had to. I had to live with her every other weekend. And then finally my dad saw it was just too dangerous. You know, I was in really tough situations, and I had to watch her disintegrate. So she died. It was so crazy because she died right as I was my business. Kate Somerville had just been picked to go into the Oscar bag. So my mom was such a bad alcoholic, I put her through three rehabs. They never stuck. And she was an amazing woman. She had her master's degree, she was a teacher. She was super artistic, and the alcohol and drugs just took her. And my dad was this strong character. He was a football coach. And he remarried when I was about 11. And that was a really tough transition for me because the woman that he married had two kids and we lived together, but it was a difficult relationship. So at 15, I was in counseling. And I'll never forget, my counselor looked at me and said, is there anywhere you can go? She goes, I can't believe I'm asking a 15 year old this, but she goes, I think that you need to get out of your house because you're not doing well. Like, I had hives and eczema all over my body. I was just struggling. And I said, yeah, and I started kind of couch surfing with my friends. I met this incredible woman when I was 19, and her name was Barbara Wells. And she had cancer. She had cancer for 12 years. She had three kids. Her husband had left her for a younger woman during cancer. She had no way of making money because she was a homemaker. And I just landed in her home and she gave me the most unconditional love, but tough love. So one day she said to me, she's like, kate, you know, you can keep going down the path you're going and be a victim and be sad, but she goes, you know, you have a Choice now. You're 19, you're an adult. You can choose what your life is set to be. You just choose it and you choose the path. And I was like, what? Like, I really didn't know that I didn't have to live in chaos because as a kid, you. You live in chaos. You think that's normal. And. And so a light bulb went on for me and I changed my life. Right after that. I moved to Cambria, which is this tiny little coast, this coastal town in the middle of Cambria. I got three waitressing jobs. And my life changed at that moment when I said, no, I'm going to live and design it the way I wanted to. And I lived in Fresno. I always wanted to live at the beach. And that's when life started changing. And I'm not going to say it wasn't difficult, because it was. I still carried that turmoil as a kid. I carried a lot of non trust, a lot of things. I had to unwind, but I just kept, you know, following the signs of goodness and going for what my vision was in my head. And.

[B]

And that early history has led to an important partnership. Can you tell me about that?

[C]

We have partnered with Foster Nation. These kids that are coming out of foster care, I can relate to, right? I could really relate to where they are because they haven't had a stable childhood. Some of these kids have been in 50 to 100 homes. They've had to change schools. They feel like strangers in their home. Some of them have been abused, and it's not any fault of their own. They could have been like me, where they've had a parent, one in five children, Nicole, in this country is affected by a parent that has substance abuse. Maybe one of their parents passed away or both of their parents. So these kids have been up against a lot of odds. And so we have pledged to mentor these kids coming out of foster care. I'm just so excited that all of the negative in my life is now turning into helping somebody that may have been in my shoes or. And much worse, let me tell you. So super exciting.

[A]

Hold onto your wallets, boys and girls. Money rehab will be right back.

[B]

Now.

[A]

For some more money rehab. I am super excited, too, and it absolutely resonates with me. I was one of those statistics as well. And I don't think, to be fair, Kate, that trauma is a competition. You've had your shit, they've had Their shit. I've had my shit. If it's bad for you, it's bad. So I just want to remind you that this is not a competition here. And you have learned so much from that time. I think it's made you so much stronger. You said that, you know, meeting Barbara helped you realize that just because it's always been done a certain way doesn't mean it's the way it needs to be. Was that with money as well? I'm assuming from your mother, you didn't get any money, lessons or foundation. But was that a turning point financially as well?

[C]

Oh, for sure. So, you know, even to this day, Nicole, money is a scary thing for me, to be honest with you. I'm now founder and I sold my company, but I was CEO of a big company and I had a lot of responsibility and I was in a lot of rooms with a lot of smart people that may have gone to Harvard and, you know, and they knew how to read stuff, spreadsheets and do contracts. And I had to kind of learn on the fly and try and put the right people around me to keep me from getting taken advantage of. And I did get taken advantage of. I'm not going to say that I didn't.

[A]

Listen, money is a mind fuck no matter what. If you have it, it is. If you don't, it is, you're embarrassed both ways.

[C]

Yeah. So money is not evil. It's a creative tool to be able to be creative. It's what you do with it. When I first got successful, I was like, oh, like this money can't go anywhere. Because, you know, I know what it was like to like scrounge for change for gas, right? So for me, like, I've had to kind of unlock some of that and go, okay, I'm gonna now risk a little over here and I'm gonna. Because you've gotta keep that money kind of still rolling to be creative, right? And so I had to really start thinking about how money is not a negative, right? And it's not also a safety blanket. It comes and goes like, listen, I just got scammed. You know, it's funny, like when I lay down at night and I think about, like, I go, well, here's how I put it in my head. I'm like, well, I hope it's feeding a family that really feels frickin needs it, you know, like even though it got taken and maybe it needed to get taken, like I go, universe, like I hope that it's doing some good, you know, And I think not to.

[A]

Get too woo woo. Although you do have a ginormous dreamcatcher behind you, so I feel like I can go there. I think there is a lot of law of attraction with money. I think you have. If you want it, you have to put it out there. It's sort of like this momentum. Even though you think, well, I want it, so I have to keep it and hoard it and be really careful with it. That's actually not the energy that you're putting out there to bring more money your way. And that was always an issue for me, too, coming from, you know, a similar abusive, tumultuous upbringing. I always wanted to keep it because I remember the hungry days. I remember the days when I didn't have food or a place to stay or whatever. But I also recently have reframed this being like, oh, well, I know what that's like. I've been there, so bring it again. I went through it if that's gonna happen. Cool, I got you.

[C]

Yep.

[A]

And so I think that you can sort of. You can reframe that idea by saying, well, I don't want to go back there, but if I do, because the only constant is change, then I know.

[C]

How to do it.

[A]

I can get through it because I did it before and I could do it again.

[C]

It's so funny because when I was about ready to walk away from Kate Somerville, I looked at both my husband and my child, which was. He was five at the time, or six, something like that, and I said, well, I did it to that point. I learned a lot, and we can do it again. And you're right. That's a great way to think. It's so funny because I went to counseling for a lot of years, and I had this kind of fear based on feeling about a lot of things. And my counselor said to me, she goes, listen. She goes, what happens when you get into trouble or chaos? Are you good at solving problems and getting out of it? And I'm like, I'm incredible at it. Like, chaos for me was so normal as a kid. So now when I get in it, I.

[A]

That's like, I'm comfortable. Oh, good to see you again.

[C]

She goes, okay. Yeah. She's like, okay. When something bad happens, know in your adult self, because the little girl inside going, I'm scared. And you go, okay, little girl, you can be scared. But the adult and you goes, I got this.

[A]

So with all of the amazing things and not amazing things you've gone through, what would be the one money advice you would now give your former self that little girl, the little Kate.

[C]

Don't be frivolous. You know, like, you think you need certain things in life and you know, I've always spent money on things that maybe I didn't need later on. And I, I would say earlier on some save and, and you think you need like that certain outfit. It's so funny. I was listening to a podcast and Buffett, what's his name?

[B]

Warren.

[C]

Warren Buffett was on and he said, he said, do I want this $30,000 haircut? And I was like, what does he mean by that? And what he meant was, I'm going to give this person 30, $30 or $50 for a haircut. And that 50, if I put it into the stock market in 20 years is going to be this much. And I'm like, when he put that into context, I was like, holy moly. The amount of money that I wasted on frivolous things, like if I would have just saved a little and put it into a stock, it would be so much bigger today. And so when you're my age, so I'm 51, and you're going to want to save for this time in your life. My father in law died at 82 and he struggled. He was a musician. He was at the top of his game in the 50s, but they didn't get paid back then. He was still really worried about money at that age and survival. And I thought, God, I just don't want to be there. So think about your future. Do you really need it? Like, if you don't need it, put it somewhere where it can grow. And that, that's what I would tell myself. 20 year self at this point.

[A]

For today's tip, you can take straight to the bank. I'm going to echo Kate's warnings and say, seriously, guys, do not make big purchases online without seeing the product IRL first. Scammers are getting smarter and none of us are exempt. Scammers have come for me. They have come for Kate and maybe even you. So no matter what you're buying, a boat, a car or a bookshelf, do everything you can to play it safe. Money Rehab is a production of I Heart Rehearsal Radio. I'm your host Nicole Lapin. Our producers are Morgan Lavoy and Mike Coscarelli. Executive producers are Nikki Etor and Will Pearson. Our mascots are Penny and Mimsy. Huge thanks to OG Money Rehab team.

[B]

Michelle Lands for her development work.

[A]

Katherine Law for her production and writing magic, and Brandon Dickert for his editing, engineering and sound design. And as always, thanks to you for.

[B]

Finally investing in yourself so that you can get it together and get it all.