Former Advanced Medical Institute director declared bankrupt

A former director of AMI and NRM, Mr Jacov Vaisman, was declared bankrupt with the Federal Court granting the ACCC’s application for a sequestration order.

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.

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.