{"id":86844,"date":"2023-12-20T01:30:13","date_gmt":"2023-12-20T06:30:13","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=86844"},"modified":"2023-12-20T01:16:09","modified_gmt":"2023-12-20T06:16:09","slug":"sec-charges-former-ceo-of-medical-device-startup-with-41-million-fraud","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2023\/sec-charges-former-ceo-of-medical-device-startup-with-41-million-fraud.html","title":{"rendered":"SEC Charges Former CEO of Medical Device Startup with $41 Million Fraud"},"content":{"rendered":"\n

(HedgeCo.Net) The Securities and Exchange Commission has charged Laura Tyler Perryman<\/strong>, the former CEO and co-founder of Florida-based medical device startup Stimwave Technologies Inc.<\/strong>, with defrauding investors out of approximately $41 million<\/strong> by making false and misleading statements about one of the company\u2019s key medical device products. According to the SEC\u2019s complaint, the medical device comprised several components, one of which was a fake, non-functional component that was implanted into patients\u2019 bodies.<\/p>\n\n\n\n

The SEC\u2019s complaint alleges that, during capital fundraising events from 2018 through 2019, Perryman made material misrepresentations about Stimwave\u2019s peripheral nerve stimulation device, or PNS Device, which purported to treat chronic nerve pain by delivering electrical signals to targeted nerves. The device consisted of three key components: (1) a transmitter; (2) a receiver; and (3) an electrode array. The transmitter was worn by patients in a pouch outside the body and sent a wireless signal into the body. A receiver and electrode array were implanted inside patients\u2019 bodies and were together supposed to receive the signal and convert it into electrical currents that stimulated target nerves. As alleged, Stimwave included two receivers of different sizes with the PNS Device, the smaller of which was designed to be used when the larger receiver was too big to implant. The SEC\u2019s complaint alleges that Perryman knew, or was reckless in not knowing, that the smaller receiver was, in reality, fake and nothing more than a piece of plastic. According to the complaint, Perryman misrepresented to investors that the PNS Device was approved by the U.S. Food and Drug Administration and was the only effective device of its kind on the market. The complaint also alleges that Perryman made false and misleading statements to investors about Stimwave\u2019s historical revenues, revenue projections, and business model. After Perryman\u2019s fraud unraveled in the fall of 2019, Stimwave voluntarily recalled the PNS Devices and eventually filed for bankruptcy.<\/p>\n\n\n\n

\u201cWe allege that Perryman touted a supposedly innovative medical pain-relief device while concealing that a primary component of the device was fake and that patients were unwittingly undergoing unnecessary surgeries to implant the non-functional component into their bodies,\u201d said Monique C. Winkler, Director of the SEC\u2019s San Francisco Regional Office. \u201cInvestors are entitled to know material information about the products of the companies in which they invest.\u00a0The SEC is committed to holding bad actors accountable.\u201d<\/strong><\/p>\n\n\n\n

The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Perryman with violating the antifraud provisions of the federal securities laws. The SEC seeks permanent injunctions, including a conduct-based injunction, disgorgement plus prejudgment interest, a civil penalty, and an officer and director bar.<\/p>\n\n\n\n

In a parallel action, the U.S. Attorney\u2019s Office for the Southern District of New York today filed a superseding indictment against Perryman that added criminal securities fraud charges.<\/p>\n","protected":false},"excerpt":{"rendered":"

(HedgeCo.Net) The Securities and Exchange Commission has charged Laura Tyler Perryman, the former CEO and co-founder of Florida-based medical device startup Stimwave Technologies Inc., with defrauding investors out of approximately $41 million by making false and misleading statements about one […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-86844","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=86844"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86844\/revisions"}],"predecessor-version":[{"id":86845,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86844\/revisions\/86845"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=86844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=86844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=86844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}