As alleged, Stimwave included two receivers of different sizes. The SEC says the smaller receiver of the two was fake — nothing more than a piece of plastic. According to the SEC, Perryman misrepresented to investors that the FDA approved the PNS device. Other allegations include false and misleading statements about historical revenues, revenue projections and the Stimwave business model.

The SEC seeks permanent injunctions, including a conduct-based injunction, disgorgement plus prejudgment interest, a civil penalty and an officer and director bar.

“We allege that Perryman touted a supposedly innovative medical pain-relief device while concealing that a primary component of the device was fake and that patients were unwittingly undergoing unnecessary surgeries to implant the non-functional component into their bodies,” said Monique C. Winkler, Director of the SEC’s San Francisco Regional Office. “Investors are entitled to know material information about the products of the companies in which they invest. The SEC is committed to holding bad actors accountable.”