To keep up the facade, Perryman also allegedly led training sessions that suggested to doctors that the white stylet was functional and directed other Stimwave employees to vouch for the device’s efficacy, leading providers to implant the faulty solution into patients and submit fraudulent claims that together amounted to millions of dollars.

Making amends
Stimwave filed for bankruptcy in 2022 in Delaware under Chapter 11 of the Bankruptcy Code, selling substantially all assets to a third party through an auction. It signed the nonprosecution agreement in October, which was sealed pending a government investigation and unsealed in March in a Manhattan federal court.

Additionally, the U.S. Attorney’s Office unsealed a civil fraud lawsuit filed against the company under the False Claims Act, and the parties’ settlement of that suit. In the settlement, which has been submitted for approval, Stimwave accepted responsibility for its conduct alleged in the civil complaint and agreed to pay $8,600,000 to the U.S. This payment will be credited toward the $10,000,000 it agreed to pay as part of the nonprosecution agreement.

The civil complaint also brings claims against Perryman under the False Claims Act, which are pending. Perryman was terminated from the company in 2019. Charges against her are just accusations at this time.

"The defendant and Stimwave did this so that they could charge medical providers many thousands of dollars for purchasing their medical device. Our Office will continue to do everything in its power to bring to justice anyone responsible for perpetuating healthcare fraud, which in this case led to patients being used as nothing more than tools for financial enrichment," said U.S. Attorney Damian Williams.

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