The former director of a male sexual enhancement business has been declared bankrupt, after he was unable to pay costs for unconscionable conduct worth more than $3 million.
Jacov Vaisman is the former director of Advanced Medical Institute (AMI) and its subsequent parent company NRM, which provided services for the treatment of men suffering from sexual dysfunction.
Both companies and Mr Vaisman were the subject of legal action by the Australian Competition and Consumer Commission (ACCC) as far back as 2010, with the ACCC alleging they had deliberately used unfair contract terms on “vulnerable consumers”.
“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,” Federal Court Justice Anthony North noted in finding Mr Vaisman guilty. He was banned from any form of management role with NRM for seven years.
Mr Vaisman unsuccessfully appealed the decision. He was then ordered to pay costs and penalties amounting to $3,679,359.
Unable to settle the huge debts, Mr Vaisman was formally declared bankrupt on 31 January by the Federal Court, at the request of the ACCC.
“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.
Only days earlier, another former company director was bankrupted for similarly not paying costs associated with legal proceedings by the ACCC.
AMI continues to operate, with clinics in Sydney, Brisbane, Melbourne and Perth. Its website claims to have given consultation to 1 million Australian men.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.