The US Securities and Exchange Commission (SEC) has charged former Stimwave Technologies CEO Laura Tyler Perryman with allegedly defrauding investors out of $41 million, CNBC reported late Tuesday.
A complaint filed with the regulatory agency accused Perryman of making “false and misleading” statements about one of its devices, alleging that she misrepresented that the device was supposedly able to treat chronic nerve pain by using electrical signals.
The device is made up of a transmitter, an electrode array and a receiver, which was “in reality, fake and nothing more than a piece of plastic,” according to the SEC.
The non-functional component was allegedly implanted into patients’ bodies, the complaint noted.
Perryman also allegedly told investors that the device, called the peripheral nerve stimulation (PNS) device, was “the only effective device of its kind on the market” and had been approved by the US Food and Drug Administration, the SEC stated.
Stimwave Technologies filed for voluntary Chapter 11 bankruptcy protection in June 2022.