SEC charges former Broward medical device startup CEO with alleged $41 million fraud

The former CEO and co-founder of a Broward County medical device startup faces charges from the U.S. Securities and Exchange Commission over an alleged fraud scheme that swindled millions from investors.

The commission filed a complaint on Dec. 19 against Laura Tyler Perryman of Pompano Beach-based Stimwave Technologies for allegedly raising $41 million from making false and misleading statements about one of the company’s key medical device products.

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The SEC's complaint alleged that during fundraising events from 2018 through 2019, Perryman made material misrepresentations about Stimwave’s peripheral nerve stimulation device, or PNS Device, which purported to treat chronic nerve pain by sending electrical signals to targeted nerves. According to the commission, the medical device comprised a fake, non-functional component that was implanted into patients’ bodies. The SEC alleged that Perryman was aware, or was recklessly unaware, that this component of the device was nothing more than a piece of plastic.

According to the complaint, Perryman misrepresented to investors that the PNS Device was approved by the U.S. Food and Drug Administration and was the only effective device of its kind on the market. The complaint also alleges that Perryman made false and misleading statements to investors about Stimwave’s financials, including revenues, revenue projections and business model. 

Stimwave voluntarily recalled the PNS Devices and eventually filed for bankruptcy in 2022 when the alleged fraud unraveled, the SEC said. 

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The SEC's complaint was filed in the U.S. District Court for the Southern District of New York and seeks permanent injunctions, including a conduct-based injunction, disgorgement plus prejudgment interest, a civil penalty and an officer and director bar against Perryman for allegedly violating the antifraud provisions of the federal securities laws.

The U.S. Attorney’s Office for the Southern District of New York filed a superseding criminal indictment against Perryman in December that added criminal securities fraud charges. The initial criminal charges were filed against Perryman in March.

Derek Cohen, the listed attorney representing Perryman in her criminal case, could not be reached for comment.

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