Gregory Charles Grimm, 45, of Saint Petersburg, is going down for selling death in disguise. The Tampa-area medical device salesman pleaded guilty Friday, January 13, 2017, to conspiracy to commit wire fraud for trafficking in expired LAP-BAND Adjustable Gastric Banding Systems. These weren’t just expired medical devices—they were implanted in real patients, putting lives at risk for pure profit.
Grimm admitted to altering serial numbers and expiration dates on the Lap-Band devices, effectively rebranding outdated and potentially dangerous equipment as safe and new. Working with co-conspirator Peter Lawrence Kafka, another Senior Account Executive at Apollo Endosurgery, Inc., Grimm helped fuel a black-market pipeline that fed expired medical gear into South Florida clinics. Kafka bought the expired units online, handed them off to Grimm, who then forged labels—making the old look new.
The fraud ran from June 2014 to October 15, 2015. During that time, at least seven of these misbranded Lap-Bands were surgically implanted into unsuspecting patients. The devices, once cleared for use only within strict expiration windows, could have degraded—compromising safety, performance, and patient health. All of it done to line pockets, violating federal law and basic medical ethics.
The scheme collapsed after Apollo Endosurgery, the very company employing both men, flagged suspicious activity and tipped off the FDA. The Food and Drug Administration’s Office of Criminal Investigations (OCI), Miami Field Office, launched a forensic probe that peeled back the layers of deception. Special Agent in Charge Justin D. Green called the fraud a betrayal of public trust—medical devices aren’t inventory to be flipped like stolen car parts.
Grimm now faces a statutory maximum of twenty years in federal prison. His sentencing is set for March 24, 2017, at 1:15 p.m. before United States District Judge William P. Dimitrouleas in Fort Lauderdale. No plea deal has been disclosed that would reduce his exposure, and prosecutors from the U.S. Attorney’s Office for the Southern District of Florida are pushing hard. Assistant United States Attorney Joshua S. Rothstein is handling the prosecution.
Wifredo A. Ferrer, then U.S. Attorney for the Southern District of Florida, stated the case sends a clear message: tampering with medical devices is not white-collar crime—it’s a direct assault on public safety. Court records remain accessible via the Southern District’s public docket at www.flsd.uscourts.gov or through PACER at http://pacer.flsd.uscourts.gov.
Related Federal Cases
- Miami Clinic Owner Pleads Guilty to $5.3M HIV Fraud Scheme · Alabama
- RCI Execs Bribed Tax Auditor with Lap Dances: $8M Fraud · New York
- Massachusetts Woman Pleads Guilty to Bank Fraud Scheme · Massachusetts
- Jacksonville Woman Pleads Guilty to ID Theft and Fraudulent Tax Returns Scheme · Florida
- Croteau Sentenced for $1.9M IRS Fraud Scheme · Florida
Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News