Former Spectranetics (NSDQ:SPNC) CEO John Schulte faces up to 5 years in prison and up to $250,000 in fines after a federal jury in Colorado convicted him on a single count of lying to federal investigators about his role in charges that the company illegally imported laser medical devices for a clinical trial.
The jury acquitted Schulte of 11 other charges including conspiracy to defraud the federal government.
Spectranetics agreed to pay $5 million and admitted responsibility late in 2009 to settle its portion of the case, after federal agents raided its Colorado Springs headquarters in 2008. Schulte resigned a few weeks after the raid and was indicted in 2010, along with 3 other defendants – former vice president of business development Obinna "Larry" Adhigije, former business development manager Trung Pham and consultant Hernan Ricuarte.
Pham was acquitted of the 5 charges against him, including conspiring to defraud the federal government and smuggling unapproved medical devices into the country, according to the Colorado Springs Gazette. Adighije’s trial on 5 charges is pending, according to the newspaper, and Ricuarte pleaded guilty in August to a single count of concealing a felony. He faces between 3 months of probation and 6 months in prison and between $250 and $250,000 in fines. He’s slated to be sentenced after all related cases are settled; Schulte is scheduled for a sentencing hearing May 29.
"I’m delighted I was acquitted on all significant counts. It makes me very happy," he told the Gazette. "We will see what we can do to fight the 1 guilty count. I don’t believe the jury got that 1 right. I am very pleased with the outcome. They charged me with some very significant counts. I always tried to do what was best for Spectranetics.
"What happened in 2008 was a very unfortunate situation. I am glad there was resolution in this case. I remain passionate about Spectranetics technology and am rooting for everyone there every step of the way," Schulte said.
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