Former CEO of Irvine Company Sentenced to 3 Years for Marketing Faulty Stem Cell Products

Former Irvine CEO sentenced to 3 years in federal prison for marketing unapproved stem cell productsPhoto byOusa CheaonUnsplash

The U.S. Attorney's Office for the Central District of California announced Monday that John Warrington Kosolcharoen, 53, former CEO of Irvine-based Liveyon LLC, has been sentenced to 36 months in federal prison.

Kosolcharoen was found guilty of marketing unapproved stem cell products that caused multiple hospitalizations due to bacterial infections.

Kosolcharoen pleaded guilty in August to one count of introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead.

“Misleading the public about the safety and effectiveness of purported cures and treatments is illegal,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s (DOJ) Civil Division.

“The department will work with its law enforcement partners to prosecute individuals who market potentially dangerous products for personal gain.”

According to the DOJ, Through Liveyon LLC and San Diego-based Genetech Inc., Kosolcharoen distributed stem cell products made from human umbilical cord blood under the brand name "ReGen."

These products were falsely advertised as treatments for a range of conditions, including Alzheimer’s disease, heart disease, and autoimmune disorders.

Kosolcharoen admitted to misleading both customers and the FDA about the safety and efficacy of these products, which were linked to serious infections in patients across the United States, according to the DOJ.

Investigations by the FDA and the Centers for Disease Control and Prevention in 2018 revealed that Kosolcharoen continued to sell the unsafe products while deceiving regulatory agencies by falsely claiming they were for research purposes.

United States District Judge Otis D. Wright II ordered the 36-month sentence, which will run consecutively to Kosolcharoen’s current prison term for an unrelated conviction. A restitution hearing is scheduled for Dec. 3.

“Exploiting the hopes of patients suffering from serious illnesses is not merely greedy, it’s cruel,” said U.S. Attorney Martin Estrada. “My office will continue to aggressively prosecute those who take advantage of victims’ fears and anxieties to line their pockets.”