Former Stimwave CEO, Laura Perryman, gets 6 years in prison for fake device scheme.
The case centered on allegations that Stimwave marketed a dummy piece of plastic as a receiver of radiofrequency energy.
Dive Brief:
A judge sentenced the former CEO of Stimwave Technologies to six years in prison Monday for creating and selling a fake medical device component. The judge imposed the sentence, which includes a further three years of supervised release, after a jury found the former CEO, Laura Perryman, guilty of healthcare fraud and conspiracy to commit healthcare fraud and wire fraud.
Perryman was taken to court after investigators became suspicious that Stimwave was marketing a dummy piece of plastic as a receiver of radiofrequency energy.
Dive Insight:
Stimwave developed a neurostimulator system to treat chronic pain. After the device came to market, physicians reported problems implanting a receiver component in certain patients. The component, which transmitted energy from an external power source to the electrodes, was too long. In response, Perryman ordered the creation of a plastic component that lacked the ability to transmit energy but could be cut to size, the court hea...
