According to a federal grand jury indictment announced this week in Massachusetts, Matthew Capobianco falsely represented on usage forms that more—and more expensive—Johnson & Johnson DePuy products were used during spine surgeries than were actually used. The falsification allegedly took place from January 2016 through June 2017. It enabled Capobianco to boost his sales numbers, increase his compensation, and attain higher rankings within DePuy’s sales organization, according to the indictment.
A news release from the U.S. Attorney’s Office in Massachusetts summarizes another accusation made against Capobianco in the indictment:
“It is further alleged that, in late 2016, Capobianco instructed a subordinate DePuy sales representative to bring certain DePuy spinal implants into an operating room at the hospital for a surgery, without those implants first being sterilized. As Capobianco and his sales colleagues understood, using unsterile implants in a spine surgery could lead to serious infection or death. It is alleged that on May 30, 2017, after this 2016 incident, , Capobianco himself brought DePuy spinal implants that were not in compliance with the hospital’s sterilization policies to an operating room at the Boston area hospital. Concerned about the dangers posed by unsterile implants, hospital employees confiscated the spinal implants to ensure they were not used in a scheduled surgery that day, and Capobianco was banned from the hospital that afternoon. During a subsequent interview with federal agents that day about the sterilization incident and his interference with the hospital’s sterilization processes in the months leading up to it, Capobianco allegedly made false statements, including about his actions earlier that day.”
Capobianco was indicted on eight counts of wire fraud and one count of making material false statements.
In a Johnson & Johnson/DePuy Synthes statement shared with MassDevice, the company said that it has resolved all government claims against the company and improper billing allegations as part of a previous $9.75 million civil settlement. The settlement was not an admission of liability.
The company statement added: “The allegations of a former employee’s conduct outlined in this indictment are contrary to company policy. We are committed to ensuring our employees conduct business in a way that complies with our Credo and with all laws and regulations, and we have extensively cooperated with the government’s investigation related to this indictment.”
