A former director of AMI and NRM, Mr Jacov Vaisman, was declared bankrupt yesterday with the Federal Court granting the ACCC’s application for a sequestration order.
The Court‘s order follows Mr Vaisman’s failure to pay the ACCC’s costs amounting to $3,679,359.00 in proceedings brought by the ACCC against AMI and then NRM. The Court also ordered the ACCC’s costs be taxed and paid from Mr Vaisman’s estate.
The ACCC brought proceedings against Advanced Medical Institute (AMI), its subsequent owner, NRM, and Mr Vaisman for taking advantage of vulnerable consumers suffering from sexual dysfunction. In April 2015, the Federal Court found that AMI and NRM engaged in unconscionable conduct and used unfair contract terms in the way it promoted and supplied medical services and medications to those consumers.
In his 2015 judgment against AMI and NRM, 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.”
“We took action against Mr Vaisman and his former companies for their roles in unconscionable conduct and use of unfair contract terms in promoting or supplying male sexual dysfunction products to vulnerable consumers,” ACCC Commissioner Sarah Court said.
“The sequestration order granted yesterday shows our commitment to holding individuals accountable for failing to comply with court orders made against them in ACCC enforcement proceedings,” Ms Court said.
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 any of the costs ordered by the Court, the ACCC filed bankruptcy proceedings against Mr Vaisman.
Mr Vaisman’s bankruptcy took effect from 4 December 2017.
NRM refers to both NRM Corporation Pty Ltd and NRM Trading Pty. AMI refers to Advanced Medical Institute Pty Ltd and AMI Australia Holdings Pty Ltd. AMI was sold to NRM which continued to operate the AMI business.
In December 2010, the ACCC instituted proceedings against the companies formerly known as AMI, NRM and Mr Vaisman.
In April 2015, the Court found that AMI and NRM engaged in unconscionable conduct and used unfair contract terms to promote or supply male sexual dysfunction products.
The Court declared that Mr Vaisman aided and abetted and was knowingly concerned in the unconscionable conduct by AMI and NRM. As a result, Mr Vaisman was restrained for seven years from having a role in connection with training, supervising, counselling or terminating employees, agents or contractors of NRM.
In May 2015, NRM and Mr Vaisman filed an appeal with the Federal Court, which was dismissed on 21 July 2016.
In December 2015, the Court found NRM guilty of contempt of court for breaching the injunctions restraining NRM from making representations about the efficacy of its medications (other than by doctors in face-to-face consultations). The Court ordered that NRM pay a penalty of $350,000.
In September 2017, the Court ordered NRM and Mr Vaisman to pay the ACCC’s costs.
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