Report: Jury convicts ex-MiMedx execs in fraud case (MassDevice)
Two former executives of MiMedx were convicted today on charges in an alleged fraud scheme involving distributors, according to a report by Law360.
A Manhattan jury rendered the verdicts against former CEO Parker H. “Pete” Petit and former COO William C. Taylor, whom federal prosecutors had charged with entering into undisclosed side arrangements with five distributors. These side arrangements allowed distributors to return product to MiMedx or conditioned distributors’ payment obligations on sales to end-users, the government charged.
Petit was convicted on one count of securities fraud and acquitted on one count of conspiracy, while Taylor was convicted on one conspiracy count and acquitted of one fraud count, according to the legal news site.
The U.S. Attorney’s office in Manhattan claimed that Petit’s and Taylor’s alleged manipulation of MiMedx’s revenue caused MiMedx to report 2015 annual revenue that was fraudulently inflated by approximately $9.5 million, or about 5%.
Nearly one year ago, MiMedx agreed to pay $1.5 million to settle federal charges that it and three former top executives allegedly defra...
