Liveyon Founder Pleads Guilty

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Liveyon founder and CEO John Kosolcharoen pleaded guilty on 8/26 to a felony violation of the Federal Food, Drug, and Cosmetic Act by introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead. A Department of Justice statement says he is currently in custody serving a sentence for a separate unrelated conviction.

Court documents indicate that Kosolcharoen founded Liveyon and Genetech in 2016 to manufacture and distribute injectable stem cell products made from human umbilical cord blood. The products were marketed under several brand names including ReGen, the statement says.

In his plea agreement, Kosolcharoen admitted that he and others misrepresented ReGen as suitable to treat conditions such as lung and heart diseases, autoimmune disorders, Alzheimer’s disease, Parkinson’s disease, and others.

He also admitted that to mislead FDA about Liveyon’s activities, he directed that purchase orders falsely state that the stem cell products were sold for research purposes only.

The statement says that in 2018 FDA and the Centers for Disease Control received reports of patients in multiple states requiring hospitalization for bacterial infections after receiving Liveyon products. Kosolcharoen said that he and others fraudulently induced customers into purchasing stem cell-derived Liveyon products by misleading the public about the cause and severity of adverse events suffered by patients and falsely reporting and concealing material facts about the outcome of an FDA inspection at Genetech that found significant deviations from good manufacturing and tissue practices.

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