SEC Charges Former Stimwave CEO For Defrauding Investors

On Tuesday, the United States Securities and Exchange Commission charged ex-CEO of Stimwave Technologies, Laura Tyler Perryman, with fraud. As per allegations, Perryman committed fraud of $41 million with investors. After complaints from the SEC, the US Attorney?s Office has decided to indict Perryman for the Southern District of New York in March.

The reports say that Perryman made ?false and misleading? statements about the devices that Stimwave manufactures. She also made false claims to investors that the US Food and Drug Administration approved the devices.

There are many complaints that Laura T. Perryman misrepresented a particular Stimwave device. She claimed that the device could treat chronic pain by the use of electric signals. As per claims, the device consisted of a transmitter, an electrode array, and a receiver. However, in reality, the device was fake and contained nothing more than mere plastic.

The complaint said that the fake and non-functional component in the device was implanted into patients? bodies. This is where matters got worse. Apart from that, Perryman also claimed that the device (also called the Peripheral Nerve Stimulation device) was the only effective device of its kind.

Monique C. Winkler, the director of the San Francisco office of SEC, stated ?

?We 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. ?
(source)

However, Perryman did not comment on the matter and the allegations against her. The SEC complaint charges her with the violation of the antifraud provision of federal security laws.

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Soumava Goswami

Inspired by The Social Network, Soumava loves to find ways to make small businesses successful – he spends most of his time analyzing case studies of successful small businesses. With 5+ years of experience in flourishing with a small MarTech company, he knows countless tricks that work in favor of small businesses. His keen interest in finance is what fuels his passion for giving the best advice for small business operations. He loves to invest his time familiarizing himself with the latest business trends and brainstorming ways to apply them. From handling customer feedback to making the right business decisions, you’ll find all the answers with him!