Former device execs charged with federal securities fraud
Device Regulation Alert: Safety, Compliance and Reimbursement News, April 23, 2007
Two former executives of the California-based device company Endocare have been indicted on federal securities fraud. The indictment says the fraudulent activity caused investors to lose at least $200 million, according to the U.S. Attorney's office in California's Central District. Paul Mikus, former CEO and chairman of the board, and John Cracchiolo, former CFO and COO, are charged with 18 counts of wire fraud, two counts of securities fraud, one count of lying to accountants, and four counts of "honest services" wire fraud. The charges carry a maximum penalty of 430 years in prison and $21.75 million in fines.
The indictment alleges that the two men "concocted bogus sales" and repeatedly overstated revenue to investors, analysts, auditors, and the Securities and Exchange Commission. For example, they allegedly failed to disclose important information such as customer checks being returned for insufficient funds. They also overstated past and projected revenue and the number of past and projected procedures performed using the company's device.
Endocare manufactures and sells a device called the CryoCare Box which is used to freeze cancerous tissue. Go to the U.S. Attorney's Web site to read more.
Related Products
-
ePharm5 InDepth
EPharm5 e-mail newsletter delivers the top 5 developments in pharma business innovation, with original research, interviews...
-
Big Pharma Performance Before, During and Beyond the Global Recession
This report assesses the performance of the leading 15 pharmaceutical companies up to, during and beyond the recent global...
Most Popular
- Articles
-
- Q/A: Volume requirement for reporting hydration services
- Featured blog post: Nurses face felony charges after reporting physician to the Texas Medical Board
- Catch up on what's new with injections and infusions
- Topic: CMS, OESS post new security compliance review information, checklist
- What does case-mix index mean to you?
- Capturing all necessary codes for IUD insertion and removal can be challenging
- QA:Coding multiple initial infusions
- News and briefs: Oklahoma Osteopathic Association against residency bill change
- OB services: Coding inside and outside of the package
- HIPAA Q&A: Level of encryption needed for email
- E-mailed
-
- Q/A: Volume requirement for reporting hydration services
- Featured blog post: Nurses face felony charges after reporting physician to the Texas Medical Board
- Catch up on what's new with injections and infusions
- New conflicts of interest create new challenges
- Q&A tackles coding questions about injections and infusions
- Joint Commission Center announces handoff communication solutions
- Inside best practice: Reduce patient falls with a stoplight
- Identify modifiable risk factors to prevent patient falls
- Hospitalist-surgeon comanagement has no effect on outcomes
- Case Management Monthly, June 2012
- Searched