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2 Florida Medical Executives Indicted for Selling Misbranded Gastric Banding Kits

Defendants allegedly purchased expired or close-to-expired gastric lap-band surgery kits on the Internet, disguised them as new, and then re-sold them to local physicians.

Florida residents Peter Kakfa and Gregory Grimm are being accused of running an expired/misbranded gastric bypass banding system scam via their employer Apollo Endosurgery, the Department of Justice (DOJ) reports.

According to the DOJ, Kafka and Grimm, who were both Senior Account executives with Apollo Endosurgery, are alleged to have bought expired or near-expired gastric bypass banding system on the Internet, relabeled them with new expiration dates and serial numbers, and then turned around and sold them to area physicians.

Kafka and Grimm have been charged with conspiracy, conspiracy to commit wire fraud, wire fraud, multiple charges of misbranding devices after shipment in Interstate commerce, notes the DOJ.

According to Law360, the investigation began after the FDA were contacted by the company the two worked for, Apollo Endosurgery.

The U.S. Food and Drug Administration Office of Criminal Investigation Miami field office is conducting this investigation. Assistant United States Attorney Joshua S. Rothstein is prosecuting the case.

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