Clinic boss declared bankrupt

The man behind a notorious sexual dysfunction clinic operation has been declared bankrupt.

The Federal Court issued a sequestration order against Jacov Vaisman after he failed to comply with a court order to pay over $3.6 million to the ACCC after losing his legal battle with the consumer watchdog.

The court case centred on two companies – Advanced Medical Institute, which later was bought by NRM. Mr Vaisman was a director of both companies.

In 2015, the Federal Court found the companies had engaged in unconscionable conduct and used unfair contract terms in the high-pressure sales tactics it used to promote and supply medical services and medications to those consumers.

In his 2015 judgment Justice North stated “It is immoral to seek to harness the fears and anxieties of men suffering from ED [erectile dysfunction] or PE [premature ejaculation] for the purpose of selling medical treatments.”

‘First line’ treatments consisted of topical and oral apomorphine  and clomipramine, for which the clinics typically charged $2500 – $4500 for 12-to 18-month treatment programs, reaping revenue of almost $40 million revenue in 2010.

In its 2015 ruling the Federal Court said the business was concerned to make money from vulnerable men with PE or ED.

“It targeted their vulnerability to sell highly priced treatments which had no proper scientific basis.”

The court had ordered NRM pay the ACCC’s over $3.6 million in legal costs.

As NRM is under external administration and no longer trading, the ACCC enforced the costs order against Dr Vaisman alone.

After Mr Vaisman’s failure to pay, the ACCC filed bankruptcy proceedings against Mr Vaisman.

The Federal Court has now ordered the ACCC’s costs be taxed and paid from Mr Vaisman’s estate.

Already a member?

Login to keep reading.

Email me a login link

© 2022 the limbic