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Doctor, wife accused of defrauding patients

Indictment says they used unapproved substance in treatments instead of Botox

A Las Vegas physician and his wife were arrested at their home Thursday morning after a federal grand jury accused them of scheming to defraud patients by treating them with an unapproved botulism toxin instead of the more expensive anti-wrinkle drug Botox.

Dr. Stephen Lee Seldon, 52, and his wife, Deborah Martinez Seldon, 39, appeared before U.S. Magistrate Judge Robert Johnston later in the day and pleaded not guilty to 14 counts of mail fraud and one count of misbranding a drug while held for sale.

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  • "By misrepresenting to the patients of their medical practice the true nature of the product they were using, Stephen Lee Seldon and Deborah Martinez Seldon enriched themselves while exposing patients to severe health risks," according to a federal indictment that was unsealed Thursday.

    Johnston released the defendants on their own recognizance but ordered them to remain within Clark County. Their trial is scheduled for Aug. 27.

    According to a statement from the U.S. attorney's office in Las Vegas, the couple operates A New You Medical Aesthetics at 3663 E. Sunset Road, Suite 303. The statements described Deborah Seldon as manager of her husband's medical practice.

    Deborah Seldon has retained attorney Donn Ianuzi to represent her. After the couple's arraignment Thursday, Ianuzi said they knew they were the targets of a criminal investigation but did not know about the indictment until they were arrested.

    "The Seldons maintain that they have never used non-approved Botox on their patients," Ianuzi said.

    Beginning in October 2003, according to the indictment, Stephen Seldon purchased the cheaper Botox alternative, known as botulinum toxin type A, without alerting his patients.

    The indictment claims the couple purchased more than $86,000 of the drug by mail from Tucson, Ariz.-based Toxin Research International Inc., which labeled it for "Research purposes only, not for human use."

    Stephen Seldon had not retained a lawyer as of his arraignment Thursday. Assistant U.S. Attorney Crane Pomerantz told Johnston that the defendant has an annual income of $800,000 and "ample assets" to hire a lawyer.

    When questioned about his health in court, Stephen Seldon said he fractured his pelvis and ribs in a horseback riding accident in October. He also said he has developed heart problems and takes five different medications.

    According to the statement for the U.S. attorney's office, the case against the Seldons grew out of an investigation of Toxin Research International and its principal owners, Chad Livdahl and Zahra Karim.

    In 2005, Livdahl and Karim were convicted of conspiracy and mail fraud in the U.S. District Court in the Southern District of Florida for selling almost $2 million of the Botox substitute to doctors.

    Stephen Seldon has been licensed to practice medicine in Nevada since February 1995, according to the state Board of Medical Examiners' Web site.



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    Don't Get It!! wrote on November 16, 2008 01:26 PM: So, are we talking about the doctor's surgical techniques in this case, or about his purchasing of a product labeled "For Research Only, Not For Human Use", that he used on his "human" patients? Why would Livdahl be in prison when he labeled his product "For Research Only - Not For Human Use"? Are they saying he is at fault for, and responsible for a medical doctor choosing to use the product on patients? I think it should be the other way around - why aren't the doctors serving time??? Sounds to me, from reading the case, that our judicial system is really twisted!!


    Happy Patient wrote on November 10, 2008 07:43 PM: I am a happy client who has seen Dr. Seldon for years. I only have nothing but good words to say about Dr. Seldon and his staff. By all do respect he is an artist and does great work!


    Jeannette wrote on November 07, 2008 02:09 PM: I'm responding to Scammed by the Doc:
    I see you have a lot of anger , however it may or may not be justified who knows. All you have done is lash out with out stating what your issues with the Dr. really are. I've had multiple cosmetic procedures with the Dr , both surgicial and non surgicial, as well as my husband and 3 of my children we are all very happy with our results. I've referred 10 friends and extended family members all of whom are happy with their results. Dr.was very professional and it's highly unlikely he kissed anyone while performing a surgicial ;procedure. That sounds silly. I've know this Dr. since 1997 and he's great at what he does in the cosmetic procedures. I know his photos to be really his because I my self , family members and friends are all in his photo's. The Dr. is entitled to vacation as he chooses and with whom he wants to. This Dr. does surgery 5 days a week and we can't ask him to not have a life because we think we might have complications. It's not fair to him, what we do once we have left his office after having a procedure is on us. Wether it be to go home and sleep it off , or go home and take something for pain and go on with our day. I my self have always gone home to sleep it off. I'm not sure what your circumstances are but I do hope you feel better now that you have done all the name calling and bashing on him and his staff. Which by the way the only family member at the office is his wife and I rarely ever see her there. Jeannette


    Scammed by the Doc wrote on October 22, 2008 07:41 PM: This Dr is a con artist and his staff is a joke. HE IS NOT A PLASTIC SURGEON People and the other blogger that commented...get over your stupid conspiricy theory. Did he kill you wife or mother??? Or better did he perform surgery on a loved one and there was a complication and he was out road tripping with his 17 yr old too busy to help in a critical matter leaving it to a surgery technician and receptionist/model/dancer/bed mate?? Most of his staff is his family the other ones well check out their myspace pages. who else would want to be liable for his botched surgeries. He shows you OTHER Doctors work claiming that they are HIS patients, but they are in other doctors websites. He takes photos to show you of people that are exceptional cases I have spent so much money with him and found he is a JOKE. Any Dr that touches you in uncomfortable ways or KISSES your cheek DURING surgery while you are awake is WRONG.


    achates wrote on February 04, 2008 03:42 AM: This prosecution is part of a nationwide witch hunt by the FDA to protect a pharmaceutical company's monopoly profits! Welcome to Amerika!