The real reason why MDMA did not get FDA Approval

A Holocaust survivor’s search for healing through psychedelics spiraled into a legal battle involving allegations of financial exploitation, assisted suicide offers, and millions in contested transfers. The case highlights how legal threats can suppress scrutiny of elder vulnerability in emerging therapeutic fields.

From Refugee to Philanthropist

George Sarlo’s life was often framed as an American Dream. A Holocaust survivor who fled communist Hungary at 18, he co-founded Walden Venture Capital in 1974 and helped manage more than $100 million in funds. The Smithsonian’s National Museum of American History showcased his story as one of fewer than three dozen examples in its “Becoming American” exhibit.

But behind the success lay deep suffering. Sarlo lived for decades with depression and anhedonia—the inability to feel joy. His daughters recalled asking as teenagers, “Dad, how come you’re never having fun?”¹

The Psychedelic Turn

At 74, Sarlo turned to psychedelics. Beginning with ayahuasca in Mexico, he later experimented with MDMA, psilocybin, and ketamine. He described these experiences as bringing “closure” to childhood trauma and sparking gratitude. Convinced of their healing potential, Sarlo became a vocal advocate and donated nearly $2 million to psychedelic research at a time when neither government nor industry provided support.

By 2015, his San Francisco home had become a hub for researchers. Rick Doblin, founder of the Multidisciplinary Association for Psychedelic Studies (MAPS), described him as a crucial connector and funder of the movement.²

Enter Vicky Dulai

Vicky Dulai, a trained psychedelic therapist, became Sarlo’s companion, assistant, and according to court filings, romantic partner. She oversaw many of his psychedelic sessions and ran his charity, Compassion for Addiction.

At her urging, according to Sarlo’s family, he pledged $1 million to MAPS. Shortly after, Dulai joined MAPS’ board, eventually serving as Chair and Treasurer while the organization sought FDA approval for MDMA-assisted therapy³.

Allegations and Legal Action

In 2020–21, during a trip to Hawaii, Sarlo—then in his 80s—fell into despair and voiced suicidal thoughts. According to a May 2021 lawsuit filed by a court-appointed conservator, Dulai allegedly offered to help him end his life. A friend reportedly overheard and alerted Sarlo’s family.

The lawsuit claimed Dulai:

Introduced Sarlo to ketamine and supervised an “intensive” regimen at home
Took ketamine with him and encouraged continued psychedelic use
Extracted more than $4 million, including $1.4 million for a Mill Valley house and a Porsche with a personalized plate

A temporary restraining order was granted on grounds of potential elder financial abuse.

Competing Narratives

Dulai maintained the money was gifted, and that she was devoted to Sarlo’s care. She did not address the assisted suicide allegation directly. Her attorneys suggested Sarlo’s daughters—who had varying degrees of contact with him—accused Dulai to position themselves for inheritance.

The case settled out of court. No terms were made public, leaving the central claims unresolved.

MAPS’ Response

When STAT News reported on the allegations in April 2022, MAPS initially said it had not investigated because “no credible claims had been made.” Only after press coverage did the organization announce an internal review.

Dulai remained on MAPS’ board throughout the controversy. There is no public record of disciplinary action or resignation.

The Broader Context: Psychedelics and Elder Risk

Experts warn that psychedelics amplify suggestibility and emotional openness, which can make older adults particularly vulnerable.

Cognitive decline may impair judgment
Wealth creates incentives for exploitation
Isolation deepens dependence on caregivers
Existential distress magnifies suggestibility

As psychiatrist Donovan Maust put it: “It’s a whole new frightening possibility of elder abuse.”

Family Intervention

By 2024, Sarlo’s daughter Susie was president of the George Sarlo Foundation. She redirected its focus from psychedelic research toward youth well-being.

In her FDA comment opposing approval of MAPS’ MDMA therapy, she wrote:

“He was repeatedly fed psychedelics by those claiming to be treating his PTSD, but in reality, they were using these powerful substances to gain control of his mind and finances.”

Whether this was genuine protection of her father or an inheritance battle—or both—remains contested.

The Litigation Chill

The Sarlo case illustrates how wealth and litigation threats can suppress public scrutiny. Reports circulated that potential commentators and journalists were warned off by the risk of lawsuits.

Without transparency, regulators, researchers, and the public may only hear sanitized narratives—while critical safety lessons remain buried.

The $185,000 Question

In 2024, watchdog group Psymposia received $185,000 from the Sarlo Foundation. Psymposia had long been critical of MAPS, raising alarms about therapist abuse, poor oversight, and “cult-like” dynamics.

The grant sparked debate. Critics said it tainted Psymposia’s independence. Psymposia countered that their critiques predated the funding by years. The optics—Sarlo family resources flowing to MAPS’ most outspoken critics during FDA review—remain notable.

What Transparency Requires

The Sarlo case underscores systemic failures:

For therapy:

Independent oversight of financial dealings between therapists and wealthy/elderly clients
Mandatory reporting of large transfers
Third-party monitoring during sessions with at-risk clients
Family notification protocols for cognitive decline

For research organizations:

Immediate investigation of board member allegations
Public ethics review outcomes
Safeguards against donor-therapist conflicts

For advocacy groups:

Disclosure of funding sources above set thresholds
Transparency about relationships between donors and advocacy targets

For legal systems:

Stronger anti-SLAPP protections
Public interest carve-outs in confidential settlements
Penalties for using litigation to suppress safety concerns

The Unanswered Questions

Because of the settlement, key facts remain unknown:

Did Dulai offer assisted suicide?
Was Sarlo cognitively impaired during transfers?
How much did MAPS know and when?
Why did MAPS take no visible action?

Conclusion

George Sarlo’s story embodies both resilience and tragedy: a Holocaust survivor who found relief in psychedelics, only to spend his final years enmeshed in lawsuits and allegations. Whether victim of exploitation, family conflict, or both, his case exposes systemic gaps at the intersection of wealth, aging, and psychedelic therapy.

When therapy involves suggestibility-enhancing substances, elderly clients with fortunes, and organizations reliant on donations, the risks multiply. Without transparency, these risks remain hidden—ensuring the next vulnerable elder may face the same dangers, unprotected.

📌 The Transparent Company advocates for systemic reforms to protect vulnerable populations in emerging therapeutic fields.

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