Gastric Band Tampering: St. Pete Man Enters Guilty Plea

ST. PETERSBURG, FL — A 45-year-old St. Petersburg man faces up to 20 years in prison after entering a guilty plea in a wire fraud case. Federal prosecutors had accused Gregory Charles Grimm of working with an accomplice to purchase, alter and resell expired LAP-BAND Adjustable Gastric Banding Systems. Seven of those systems reportedly ended up being implanted into patients in the Sunshine State.

Grimm was indicted on Dec. 8, 2016. The United States Attorney’s Office also announced an indictment against Peter Lawrence Kafka, 57, of Parkland at that time.

Grimm and Kafka were both senior account executives at Apollo Endosurgery Inc. Court documents say the two “engaged in a scheme to unlawfully enrich themselves by misbranding LAP-BAND Adjustable Gastric Banding Systems, changing the serial number and expiration date in order to sell expired medical devices for profit.” Kafka is accused of buying expired or nearly expired bands over the internet. Grimm was accused of creating fake labels and serial numbers to hide the true expiration dates. Grimm, court documents say, then gave Kafka the altered bands to sell to physicians in Florida.

According to the indictment, the scheme was conducted between June 2014 and Oct. 15, 2015. An investigation into the possible scheme was kicked off by the U.S. Food and Drug Administration based on a referral from Apollo Endosurgery.

“At least seven of these misbranded LAP-BANDS were subsequently implanted into patients,” a statement from the U.S. Department of Justice said.

Grimm’s Jan. 13 decision to enter a guilty plea in the case was announced by the DOJ earlier this week. He is scheduled for sentencing on March 24 in Fort Lauderdale. Grimm faces a maximum sentence of 20 years in prison.

LAP-BAND devices are surgically implanted around the upper part of the stomach to help people who are obese lose weight. The adjustable bands limit the amount of food that can be comfortably held in the stomach, effectively limiting food intake.

No updates in the case against Kafka have been announced at this time.

Image via Shutterstock