Former senior executives from MiMedx Group have been indicted for accounting fraud.
MiMedx is known for producing high quality tissue grafts. The indictment is being carried out by the Justice Department. More specifically, the indictment is charging Parker H. Petit and William Taylor with pursuing accounting fraud during 2015 and 2016. The accounting fraud is said to have misstated the company’s revenue and as a result misled investors.
Petit was MidMedx’s former chief executive and Taylor was the company’s former president. Additionally, the Securities and Exchange Commission have filed a separate civil suit against the company. This civil suit is also on charges for accounting fraud but extends the timeline to committing fraud between 2013 and 2017.
MiMedx have settled the civil suit with the SEC by paying $1.5 million. The company did not have to admit to committing fraud when settling the case.
“Bringing this [SEC] investigation to conclusion is another step toward the company’s commitment to resolve past issues and move forward without distraction from our efforts in advanced wound care,” said M. Kathleen Behrens, who chairs the MiMedx board.