On January 23rd, it was reported that Thomas Guerrieri, the former VP of Sales at Orthofix was sentenced to eight months in prison and ordered to pay a fine of $20,000 and forfeit $30,000. In April Mssr. Guerrieri pled guilty to paying kickbacks to two separate healthcare professionals in violation of the Medicare AntiKickback Laws. In October of 2012 Brian Racy pled guilty to filing $250,000 in false Medicare Claims and is due to be sentence this coming month potentially spending a minimum of 8 years in prison if he gets the book thrown at him. For those of our readers that lack knowledge of jurisprudence, a federal sentence results in at least 80% time served. In July of last year, "the Fixx" as they are better known in the industry incurred $7.4 million in disgorged profits and fines relating to another bribery charge related to business in Mexico. As recent as two weeks ago Derrick Field, an Orthofix Manager from 2005 thru 2011 received a sentence of five months of home confinement as part of his 2 year probationary sentence, a gift from U.S. District Court Judge Joseph Tauro.
TSB must ask our readers, "is there something in the water in McKinney, Texas?" Could Orthofix be spell bound by the Blackstone Curse? Why is it that people in this industry are so greedy? There's plenty of gold in 'em hills for everyone to make a respectable living, yet, it is our avarice that makes our humanity so frail. And then you wonder why Big Brother comes knocking on your door? But the bigger question that must be posed to our readers is, how did the DOJ drop the ball on the Senior Executives that were responsible for running this company during the aforementioned culprits tenure at The Fixx? Is anyone going to honestly say that the executives in charge had no inkling that the Slim Shady was in? For those in sales management, it would be safe to assume that the red lights or better yet, neon lights go off when sales no longer grow exponentially to market conditions and start to blow out the roof. Does anyone believe that those in charge did not know anything that was going on? But maybe there is a lesson to be learned from this experience. The only people that get screwed are the little guys, because eventually the paper trail leads to you, while the big boys cover their asses. And in the end the government never prosecutes CEO's who place their hand on the bible and swear to God, by using the Sargent Schultz defense, "I know nothing!"
The impression that you sell, passes in and out like a scent
But the long face that you see comes from living close to your fears
If this is up, then I'm up, but you are running out of sight
You've seen your name on the walls, And when one little bump leads to shock miss a beat
You run for cover and there's heat, why don't they do what they say, say what they do