Medical device maker Spiracur Inc has been accused of improperly compensating podiatrists at four Veterans Affairs medical facilities to promote use of its product. The company has agreed to pay $3 million to settle the allegations.
A government investigation found that Spiracur Inc, based in Sunnyvale, California, provided gifts and gratuities to VA podiatrists in Phoenix, Atlanta, San Francisco, and Cleveland. The company also paid excessive speaking fees to the podiatrists in an effort to increase sales of its negative pressure wound treatment product, known as the SNaP system.
The law is clear: Government employees are not allowed to accept gifts and gratuities for steering business to a particular company, said U.S. Attorney Annette L. Hayes. Care decisions should not be based on who has provided the biggest gift. Taxpayers need to know medical facilities are choosing the right product at the right price for our veterans and others who rely on publicly-funded medical programs.
Spiracur manufactures and sells the SNaP system, which is used primarily in the treatment of diabetic ulcers. Between 2010 and 2015, the company sold the SNaP systems to the four VA facilities for just over $3.3 million. The investigation revealed that Spiracur improperly compensated the VA podiatrists during this time period.
The integrity of VA’s procurement process of healthcare devices is essential to providing effective care to our nation’s veterans, said Michael E. Seitler, Special Agent in Charge for the U.S. Department of Veterans Affairs, Office of Inspector General, Northwest Field Office. This case is one example of the OIG investigating allegations of undue influence into that process. The settlement of this case returns funds to VA that will be used to help care for veterans.
Under the terms of the settlement agreement, Spiracur admits no wrongdoing and agrees to cooperate with any further investigation into the medical staff who accepted the improper compensation. As part of a separate transaction, Spiracur’s assets are in the process of being acquired by KCI USA, Inc.
The matter was investigated by the Veterans Affairs Office of Inspector General. The case was handled by Assistant United States Attorney Kayla Stahman. The settlement agreement was reached on an unspecified date, but the outcome of the case is that Spiracur Inc has agreed to pay $3 million to settle the allegations.
The defendant/respondent in this case is Spiracur Inc, a medical device manufacturer based in Sunnyvale, California. The exact criminal charges are allegations of improper compensation of VA podiatrists. The company is based in the state of California, but the crime allegedly occurred in the state of Washington. The sentence or outcome of the case is that Spiracur Inc has agreed to pay $3 million to settle the allegations.
The dollar amount of the settlement is $3 million. Spiracur Inc has agreed to pay this amount to settle the allegations of improper compensation of VA podiatrists.
The crime allegedly occurred between 2010 and 2015, when Spiracur sold the SNaP systems to the four VA facilities for just over $3.3 million.
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Key Facts
- State: Washington
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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