February 22, 2024

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San Fernando Valley Man Pleads Guilty to Selling Used and Counterfeit Medical Devices Used for Skin Tightening and Fat Burning | USAO-CDCA

San Fernando Valley Man Pleads Guilty to Selling Used and Counterfeit Medical Devices Used for Skin Tightening and Fat Burning | USAO-CDCA

          LOS ANGELES – A Tarzana male pleaded responsible right now to federal felony expenses for jogging a practically $6 million scheme in which he knowingly offered utilised pores and skin-tightening healthcare gadgets that were being intentionally misbranded as new, as effectively as counterfeit products that he claimed were to be made use of with unwanted fat-lessening laser devices.

          Kambiz Youabian, 49, pleaded guilty to a two-depend data charging him with mail fraud and introducing a misbranded professional medical unit into interstate commerce.

          In accordance to his plea arrangement, Youabian owned and operated MSY Systems Inc., a West Los Angeles-centered business that did business below the names “Thermagen” and “Global Digital Supplies” (GES).

          From March 2016 to June 2022, Youabian obtained utilised transducers, which are professional medical products employed to tighten the skin of dermatology sufferers by delivering ultrasound strength to a patient’s pores and skin. Utilised thoroughly, transducers are made to offer no additional than 2,400 remedies. Soon after this amount is arrived at, the gadgets are regarded depleted and must be disposed of in accordance with well being code laws.

          Through GES, Youabian purchased depleted transducers for nominal sums, usually $50. Youabian then remanufactured the depleted transducers and extra fabricated serial numbers to make the transducers seem to be new.

          Then, as a result of his Thermagen corporation, Youabian fraudulently marketed and bought – for quite a few times extra than he paid out for them – the remanufactured transducers to overall health care companies and buyers as “new” transducers with 2,400 remaining treatment plans. To conceal his connection to Thermagen, Youabian applied names of fabricated Thermagen staff members on correspondences with target vendors and employed out-of-condition commercial mailboxes for Thermagen’s return of handle on shipments, which he despatched via the U.S mail.

          For example, in February 2020, Youabian, as a result of Thermagen’s website, offered a system falsely advertised as “new” and “containing 2,400 lines” – and with a retail price tag of $1,695 – to a customer. Youabian then transported the system – which contained a faux serial amount – from Los Angeles to Florida by means of the United States Postal Support.

          Youabian also shipped counterfeit PAC keys, clinical units used to run laser equipment created to decrease fat on people, by means of the mail.

          He then transferred his ill-gotten gains to bank account his managed, such as accounts he opened in the names of MSY Technologies, himself, and his au pair.

          In June 2022, law enforcement executed research warrants at Youabian’s house and the GES-Thermagen workplace in West Los Angeles.

          In the GES-Thermagen office, regulation enforcement seized 75 transducers in numerous states of refurbishment, a producing workstation containing instruments and transducer areas, and detailed information of GES and Thermagen’s expenditures.

          Youabian admitted in his plea arrangement to unlawfully offering thousands of healthcare products, together with transducers and PAC keys, and obtaining at minimum $5,821,474 in fraudulent proceeds that must have been paid out to the firms that are the sole U.S. distributors for these equipment. Youabian also admitted to producing reputational harm to the unit makers and distributors of these healthcare devices.

          United States District Choose Dale S. Fischer scheduled a June 26 sentencing hearing, at which time Youabian will encounter a statutory most sentence of 23 yrs in federal jail.

          The U.S. Food stuff and Drug Administration Office of Prison Investigations and the United States Postal Inspection Support investigated this make any difference.

          Assistant United States Legal professional Gregory D. Bernstein of the Key Frauds Area is prosecuting this situation.