Laura Perryman, Healthcare Fraud, New York 2024
Former CEO of Medical Device Company Sentenced to Six Years in Prison for Creating and Selling a Fake Component That Was Implanted Into Patients
LAURA PERRYMAN was sentenced to six years in prison in connection with a health care fraud scheme whereby Perryman created and sold a fake medical device component and told doctors that they could claim approximately $18,000 for implanting the fake component into patients.
The device was sold by Stimwave, a medical device company of which the defendant was the founder, and, at the time of the offense, Chief Executive Officer. Stimwave previously entered into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the Southern District of New York.
PERRYMAN was found guilty of health care fraud and conspiracy to commit health care fraud and wire fraud following a two-week trial before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
“Laura Perryman callously created a dummy medical device component and told doctors to implant it into patients,” said U.S. Attorney Damian Williams. “She did this out of greed, so doctors could bill Medicare and private insurance companies approximately $18,000 for each implantation of that dummy component and so she could entice doctors to buy her device for many thousands of dollars.
Perryman breached the trust of the doctors who bought her medical device, and more importantly, the patients who were implanted with that piece of plastic. This prosecution and today’s sentence are part of this Office’s ongoing work in combating fraud in the health care system and protecting patients from being exploited for money,” said Williams.
According to the allegations in the Indictment and the evidence at trial, Stimwave was a medical device company that manufactured and distributed implantable neurostimulation devices. As the founder and CEO of Stimwave, Perryman oversaw the design of the StimQ PNS System, a neurostimulator system designed to treat chronic pain by providing electrical currents to peripheral nerves.
The StimQ PNS System included a component containing electrodes and a receiver component that acted as an antenna, transmitting energy from an external power source to the component. From at least in or about 2017 up to and including 2020, Perryman, as Stimwave’s CEO, engaged in a multi-year scheme to design, create, manufacture, and market an inert, non-functioning component of the device — called the White Stylet.
The White Stylet was marketed as a receiver of radiofrequency energy, but it was made of plastic and could not function as a receiver. Stimwave sold the device to doctors and medical providers for approximately $16,000.
PERRYMAN instructed health care providers to bill medical insurance providers, including Medicare, for implanting the device into patients through two separate reimbursement codes. One code was for implantation of the stimulator portion of the component, and a second was for implantation of a receiver.
The billing code for implanting the component provided for reimbursement at a rate of between approximately $4,000 and $6,000, while the billing code for implanting a receiver provided for reimbursement at a rate of between approximately $16,000 and $18,000.
Mandatory facts: Defendant/respondent - LAURA PERRYMAN, criminal charges - health care fraud and conspiracy to commit health care fraud and wire fraud, city and state - New York, exact date - not provided, sentence or outcome - six years in prison, dollar amounts - approximately $18,000, approximately $4,000, approximately $6,000, approximately $16,000, and approximately $18,000.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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