Jacov Vaisman, the man who made hundreds of millions of dollars offering men “longer lasting sex” using a nasal spray has been declared bankrupt in a long-running battle with the Australian Consumer and Competition Commission (ACCC).
Vaisman’s Advanced Medical Institute (AMI) was notorious for its oft-complained about billboard posters, which were ruled offensive as far back as 2008.
But more concerning for the consumer watchdog was the fact that there was no science behind Vaisman’s claims and his business engaged in unconscionable conduct and used unfair contract terms in treating men for sexual dysfunction.
Sales people warned clients during consultations of the dangers of stroke, prostate cancer and “penis shrinkage” if they failed to have treatment. Thousands of men paid between $2500 and $4500 for the supposedly unique “nasal delivery technology”.
A long-running court battle between Vaisman, his companies and the ACCC, which began in 2010, finally ended yesterday when the Commission succeeded in bankrupting the businessman for failing to pay the organisation’s $3.67 million legal costs in proceedings against him. The bankruptcy is backdated to 4 December, 2017.
When the ACCC initially launched proceedings against AMI, Vaisman ploughed the company under, then sold it to another business he owned, NRM, in a bid to thwart the consumer watchdog. But the case continued and five years later April 2015, for the Federal Court found in the ACCC’s favour against Vaisman and his business.
Justice North said at the time: “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.”
As part of that decision, Vaisman was banned for seven years from any further involvement in NRM. But when he continued and the business continued to make false efficacy claims, the ACCC launched contempt of court proceedings in December 2015. Vaisman lost again, lodged further appeals, and lost that case too.
When the legal actions ended, Vaisman put NRM into administration. It had less than $10 in left in its accounts.
Last year the court ordered NRM and Mr Vaisman to pay the ACCC’s legal costs of $3,679,359.
After he failed to pay any of the costs, the ACCC filed bankruptcy proceedings against Vaisman.
The Ukranian-born businessman, who lives is Sydney, is believed to be suffering from ill health.
It’s the second bankruptcy win for the ACCC in a week after last week sending serial conman Peter Foster bankrupt over another outstanding legal bill.