In a recent development reported on March 8, 2024, Laura Perryman, the former CEO of Stimwave Technologies, was found guilty of healthcare fraud and conspiracy related to the marketing of a faulty implantable neurostimulation device. The device, intended for chronic pain treatment, was discovered to contain a non-functional component. This conviction came from the Southern District of New York, where Perryman faced one count of healthcare fraud and one count of conspiracy to commit healthcare fraud and wire fraud. The healthcare fraud charge could lead to a maximum of 10 years in prison, while the conspiracy charge carries a potential 20-year sentence.
The issue originated when physicians reported difficulties implanting a specific component of the StimQ peripheral nerve stimulation device, cleared by the FDA in August 2017. In response, Perryman directed the creation of a dummy component, made entirely of plastic with no electrical conductivity, falsely presented as a functional part of the device. This led to the implantation of this non-functional component in patients, with Stimwave billing healthcare providers thousands of dollars for both the device’s lead and receiver portions under false pretenses.
The fraud, which spanned from 2017 to 2020, resulted in Perryman’s arrest in March 2023. She had resigned from her position in November 2019. Following the exposure of the scheme, Stimwave recalled the device and eventually filed for bankruptcy. Moreover, in December, the U.S. Securities and Exchange Commission charged Perryman with defrauding investors of approximately $41 million. This case underscores the critical importance of integrity and transparency in the medical device industry.