FDA Friday Fraud Round-Up: Johnson & Johnson, NxThera, Allergan & Pfizer
December 4, 2015
UPDATED: Federally indicted Patrick (Pat) Fabian CCO of NxThera no longer listed on the company website. Is this a manipulation of the facts to mitigate the damage from the negative truth potentially hurting the image and profits around Thursday’s announcement that Boston Scientific led NxThera’s $40 million funding round or is Fabian gone from the Company?
Updated July 2016: The former Chief Executive Officer William (Bill) Facteau (currently CEO of EarLens) and Vice President of Sales of Acclarent, Inc. Patrick (Pat) Fabian (now of NxThera) a medical device company, were convicted by a federal jury in connection with distributing adulterated and misbranded medical devices.
In August, this site asked: What Have the Department of Justice And Johnson & Johnson Been Doing Behind Closed Doors For the Last Four Months? This question was posed regarding April’s announcement of the U.S. Department of Justice’s arrest and indictment of Johnson & Johnson Ethicon Acclarent former executives William (Bill) Facteau and Patrick (Pat) Fabian.
Former Acclarent, Inc. Executives Charged with Securities Fraud and Crimes Related to Sale and Distribution of Medical Devices | USAO-MA | Department of Justice
BOSTON – The former Chief Executive Officer and Vice President of Sales of Acclarent, Inc., a medical device company, were charged in an indictment unsealed today with conspiracy, securities fraud, wire fraud and violations of the Food, Drug and Cosmetic Act.
Sadly, there isn’t much to new to add to this story an entire eight months later except William (Bill) Facteau, currently CEO of EarLens has a trial date set for May 23, 2016. And sadder still is the little-noticed headline from yesterday’s WDRB.com, that failed to make mainstream media, stating startup NxThera, where Patrick (Pat) Fabian is currently CCO, completed a $40 million venture round of funding led by Boston Scientific.
The Sociopathic Business Model™ maintains that venture capital-backed startups encourage, replicate and reward unethical and or illegal behavior, a point that’s clearly consistent when Facteau & Fabian, two federally indicted startup executives accused of 18 counts of fraud including conspiracy, securities fraud, and violations of the Food, Drug, and Cosmetics Act, can easily find work in new startups holding executives positions. The DOJ wouldn’t charge executives with 18 counts of for fraud without having a strong case; however, that’s not always the same as being able to prove their case in court and often times they take what they can get. In the off chance, Facteau and Fabian plead down, flip on Acclarent co-founders Josh Makower and John Chang and avoid jail that’s still not the same as innocent as far as potential employers or taxpayers should be concerned. Innocent until proven guilty is a misleading statement when taxpayers have allowed two known corrupt entities to negotiate on behalf of the American people behind closed doors. If we want to start fixing a broken system then we need to remove executives like Facteau & Fabian from ever again working for any venture-backed startups, where they’re made to permanently step down from any and all board positions or executive positions in the industry; and, the DOJ needs to stand behind the Yates Memo and start putting executives in jail, even if part of a plea deal.
Yesterday, the same day a federally indicted CCO & his company NxThera received $40 million in funding lead by Boston Scientific, Erika Kelton of Forbes, who writes about whistleblower matters involoving fraud wrote: Pfizer-Allergan Merger Raises Concerns That Fraud Is Part Of ‘Corporate DNA’
UPDATED: Patrick (Pat) Fabian is now missing from the NxThera website which is not factual confirmation he’s no longer with the company, and much more likely he was removed just prior to the Boston Scientific announcement to mitigate the negative truth that could damage image & profits. Check back for updates
The massive Pfizer-Allergan merger is getting a lot of attention. It is one of the largest takeovers ever in the healthcare industry, worth an estimated $160 billion.
But consider another number: The amount Pfizer, Allergan and their predecessor companies have paid to settle government healthcare fraud allegations in the US – a total of nearly $4.5 billion. That total doesn’t include close to $1 billion paid to settle related consumer actions.
Add to that the six criminal pleas and four corporate integrity agreements that the companies and their predecessor subsidiaries have agreed to, and one might question whether cheating and corruption are part of their “corporate DNA.”
Pfizer’s and Allergan’s recent histories are so marked by allegations of wrongful – even criminal – practices that regulators should seriously question whether the merger of these two pharmaceutical heavyweights is in the public’s interest.
As this site often states in frustation, just how many corporate integrity agreements does a company get to sign before the DOJ realizes that company has no integrity? This site has already chronicled Pfizer fraud where then US Attorney General Eric Holder negotitated the company’s federal fine and less than a year after leaving his position went back to work for Covington LLP who defends Pfizer in white collar crime cases and mergers the same Covington LLP whose also previously boasted about defending Johnson & Johnson, perhaps even the same Johnson & Johnson who purchased Acclarent where two executives await federal trials. Which brings is to Allergan, where earlier this year there were concerns over anti-trust laws, fraud, and let’s not forget about all the problems with the recalled Lap-Band, because I’m sure all Allergan’s patients turned victims haven’t.
And, these are just the things we know about as taxpayers, remember there’s a lot going on behind closed doors, negative truths that could hurt the image of both the FDA and companies like Johnson & Johnson, Allergan, Pfizer, which they don’t want to the public to know about, why else would they meet behind closed doors?
I’d like to personally thank Erika Kelton of Forbes for not being blinded by the billions and looking at the facts of fraud, it’s rare in media today and greatly appreciated not only by myself but the readers of this site, many of whom have been injured patients, consumers, employees and taxpayers at the hands of the corrupt companies who have colluded with parts of a corrupt government.