Trial set in Botox fraud case

Patients eager to rid themselves of facial wrinkles sought the help of a Las Vegas doctor and signed a consent agreement confirming that the clinic would use the government-approved Botox drug treatment.

But according to the U.S. Attorney's office, Dr. Stephen Lee Seldon and his wife, Deborah, forged their own private agreement: They never intended to use Botox, but instead purchased a less expensive treatment to increase their profit.

The couple was indicted in June 2007 on charges that include mail fraud and misbranding a drug held for sale.

The government contends they did not follow through with promises to their patients and used TRItox, a knockoff product with a label that specifically says, "For research purposes only, not for human use."

TRItox has not been approved by the Food and Drug Administration.

The two are scheduled to go to trial on Wednesday on allegations that they distributed the TRItox product between October 2003 and September 2005, according to the complaint against the couple.

The scheme involved "fraudulently obtaining money from patients by substituting cheaper non-FDA approved TRItox in treatments provided to patients at A New You," the complaint states, referring to the couple's Las Vegas clinic.

The Seldons advertised their Botox treatment in health and fitness magazines based in Las Vegas.

During a year-long period ending in October 2004, the Seldons purchased 19,000 units of TRItox for $36,925, about half the cost of Botox, the complaint states. In 2005, they secretly arranged for the purchase of more TRItox worth $50,000, according to the federal government.

The 2005 purchase came two months after four individuals were hospitalized in Florida after receiving injections of non-FDA approved botulinum toxin at a clinic unrelated to A New You, the complaint states.

The Florida incident triggered an investigation into the Arizona-based company Toxin Research International Inc., which produces TRItox.

Chad Livdahl and Zahra Karim, owners of the research company, pleaded guilty in 2005 to conspiring to commit fraud in connection with distributing TRItox as a substitute for Botox.

As part of their plea deal, the couple agreed to help authorities identify approximately 200 doctors who used their product. According to federal authorities, the two made more than $1.7 million from distributing the substance.

Livdahl was sentenced to nine years in prison and Karim six years for their crimes.

Botox was approved for cosmetic purposes in 2002. Allergan Inc., an Irvine, Calif.-based company, is the only company approved to manufacture the product, so all doctors performing this type of cosmetic surgery are required to use Allergan.

Contact reporter Adrienne Packer at apacker@reviewjournal.com or 702-384-8710.