Bail was set at $100,000 and a sentencing date is scheduled for June 21st. The surgeon faces five years of imprisonment and a $250,000 fine. If the DOJ intends on sending a message to our industry, maybe its time the Judge in this case throw the book at the individual in this case. Unfortunately, for every surgeon that truly contributes and deserves to be compensated for contributing to the development of innovative and emerging technology, there are too many of their peers that are involved in sham consulting agreements. TSB wants to know what our readers think? Do you believe the DOJ intends on cleaning things up or do you believe that this is all a big ruse?
Tuesday, March 9, 2010
Surgeon Admits Guilt to Sham Consulting Deal
In a case that could establish a precedent for the on going investigation into sham consultant agreements in the spine industry, it was reported by Orthopedics This Week that the first surgeon to be secretly paid off to endorse a company's product without ever having performed any training room, operating room or consulting services plead guilty to one count of conspiring to commit wire fraud.
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ReplyDeleteDr. Shekhar Desai, a total joint guy out of Florida. Admitted to sham deals with Depuy.
ReplyDeleteFrom the OTW article is makes it sound as though Depuy has an innocent hand in the deal and they were the ones being ripped off. Any details on their actual involvement?
ReplyDeleteSince it's TSB's blog and certain readers want us to monitor other readers comments, we find it interesting that those complaining go on to rant the most. So in the spirit of the forum, if you can't post something argumentative, you leave us no other recourse but to delete your blog along with those that border on the sublime. Besides, those that bitch about the blog site the most, seem to be as culpable as those that they accuse. Remember, it's a blog and if you don't like what is written or commented about, you have an opportunity to be heard, or, you don't have to read it.
ReplyDeleteWhile it is long overdue that the DOJ aggressively pursue improper consulting agreements, I feel these will be difficult to prosecute. Most are at least somewhat proper in my opinion. That said, taking a look at the percentage of users who are also consultants with certain companies would be eye opening.
ReplyDeleteWhen will the DOJ look into surgeon owned distributorships? In my world, this is the more serious sham. And one that does nothing for the long term development of the industry. As these companies put little to nothing back into R&D.
The DOJ has a lot of work to do in Nevada.
ReplyDelete"I have it on good authority" that the DOJ is only going to go after surgeons who actually worked a "shakedown" on the companies who dangled dollars of payola in front of them to get their business. This would include those who actively solicited payments under "no-work" agreements in return for using product, and those who went to companies with whom they had existing agrements, and asked for more, or "they were taking their business elsewhere" - likely because they had received a better offer. From what I have heard, the DOJ's opinion is that docs who just accepted "no-work" consulting agreements and took payments for delivering their business were too intellectually and ethically retarded to actually understand that what they were doing represented a criminal conflict of interest. This goes to the underlying perception by the DOJ and others that an atmosphere of corruption and fraud pervaded the orthopaedic practioner world to the extent that it "clouded the understanding" of surgeons who would otherwise be nice honest docs.
ReplyDeleteSad commentary. Harkens back to the day of under-the-table manilla envelopes stuffed with hundred dollar bills passed to "surgeon-champions", and off-shore secret accounts set up secretly for payoffs. Now that would have made headlines. The press, the DOJ, and Senator Grassley's committee all missed the boat from those "glory days" of the orthopaedic device market. Too late to catch now - the statue of limitations must have tolled by now.