DOJ Prosecutes Securities Fraud of Medical Device Company

The U.S. Department of Justice prosecuted a $750 million securities fraud case against the CEO, CFO, COO and a senior vice president of a publicly traded medical device company. Henry Van Dyck served as co-lead counsel in the U.S. District Court for the Western District of Texas. The CEO and CFO were charged with an accounting fraud scheme that inflated the company’s publicly reported revenue through circular transactions and by “channel stuffing” its distributors. The CEO was convicted following a two-week jury trial. The CFO, COO and a senior vice president pled guilty in the case. Negotiated a corporate resolution with the company, which resulted in it paying approximately $30 million in penalties.