Spectranetics' ($SPC) former CEO John Schulte will serve one year of probation, following his conviction in March of one count of lying to federal investigators, the Colorado Springs Gazette reports. He also paid a $5,000 fine and must perform 100 hours of community service in the Boston area where he lives.
As the Colorado Springs Gazette article reminds us, the government had been pursuing allegations that the Colorado Springs-based medical laser manufacturer illegally imported and marketed unapproved medical devices.
The sentence handed down in U.S. District Court could have been a lot worse. Schulte was acquitted of 11 other charges that ranged from defrauding the government, to smuggling unapproved medical devices into the country. Even with his sentencing, the punishment is relatively mild. The disgraced executive faced a potential three-year prison sentence. Federal prosecutors wanted him to serve two years in prison and three years probation, but Schulte's attorney, Thomas Kirsch, told the Colorado Springs Gazette that dozens of co-workers sent in letters supporting leniency, based in part on his client's otherwise "exemplary life" in the community.
Schulte resigned from Spectranetics in 2008.
Two other ex-Spectranetics employees indicted in 2010 over the issue have also had their cases resolved. A former business development manager for the company, Trung Pham, was acquitted of all the charges against him in the March trial. Obinna Adighije, once the company's vice president of business development, also had all federal charges dropped against him, according to the story. Another individual, Hernan Ricuarte, who represented the Florida firm hired by Spectranetics to identify part markers for its products, pleaded guilty in August to concealing a felony by sending an e-mail to a Spectranetics employee that acknowledged and promoted using bogus invoices for non-FDA approved catheter guidewires. A sentencing date is pending.
Spectranetics itself settled the investigation in 2009 when it paid $5 million in penalties and forfeitures, according to the story.
- read the Colorado Springs Gazette story