Head of Knickerbocker Co. Sued by Longtime Business Partner

Corona del Mar plastic surgeon Michael Elam has filed a lawsuit against his longtime business partner, Louis L. Knickerbocker, accusing the president of L.L. Knickerbocker Co. of fraud, breach of contract and tampering with financial books.

The suit, filed Tuesday in Orange County Superior Court, comes after Knickerbocker last summer stated that he was severing business relations with Elam, whose troubled past was seen as a liability to Knickerbocker’s business.

Knickerbocker’s Rancho Santa Margarita company, a television marketer of collectible dolls, jewelry and other products promoted by such celebrities as Farrah Fawcett, last summer attracted much attention when its stock soared. At that time, Knickerbocker’s business links with Elam became public. Elam was a spokesman for a line of cosmetic products developed jointly with and marketed by Knickerbocker.

Elam, who sculpted Knickerbocker’s nose and then gained national exposure as actress Phyllis Diller’s cosmetic surgeon, had his medical license revoked by the state in 1990 because of charges of malpractice and fraud.

In his suit, Elam alleges that Knickerbocker owes him at least $1 million in profits from cosmetic sales and loans Elam says he made to Knickerbocker’s company. Knickerbocker could not be reached for comment Wednesday.