Matthew Capobianco, a former DePuy Synthes sales representative, was accused of defrauding a hospital in Boston and lying to federal authorities.
Mr. Capobianco faces eight counts of wire fraud and one count of making false statements, according to a June 26 news release from the U.S. Attorney's Office for the District of Massachusetts.
Between January 2016 and June 2017, Mr. Capobianco allegedly said some spine devices were used in surgeries he covered. In his job with DePuy Synthes, he observed spine surgeries and tracked usage on billing forms to the hospital. His pay was allegedly tied to the volume of products surgeons used.
Mr. Capobianco allegedly lied on forms, saying more — and more expensive — products were being used. His alleged overbilling defrauded the hospital hundreds of thousands of dollars.
Additionally, Mr. Capobianco allegedly told a subordinate sales representative to bring specific implants into an operating room without sterilizing them first. He allegedly then made false statements about the incident during an interview with federal agents.
A spokesperson for Johnson & Johnson, DePuy Synthes parent company, said government claims against the company were resolved, and improper billing allegations were dismissed.
"The allegations of a former employee’s conduct outlined in this indictment are contrary to company policy," according to a June 27 statement emailed to Becker's. "We are committed to ensuring our employees conduct business in a way that complies with our Credo and with all laws and regulations, and we have extensively cooperated with the government’s investigation related to this indictment."
Mr. Capobianco faces up to 20 years in prison, a $250,000 fine and three years of supervised release if convicted. He was released from custody on conditions June 26.