More ties to Forest Park, active breach of federal sales regulations, knockback of “independent” research and the dead-on-arrival of international expansion.
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The fraud at MiMedx continues to unravel as the company announced it would have to restate more than half a decade’s worth of financials, doctors receiving bribes from MiMedx and that its short selling commentary cannot be relied upon. Viceroy have identified further issues with the company including:
- The announcement of MiMedx’s international expansion was a sad attempt at distracting investors from the Company’s compliance updates.
- In the UK, the technology commentary from the NHS appears very skeptical as to the efficiency and economic viability of MiMedx’s EpiFix product compared to existing solutions. EpiFix has been available in the UK for 2 years as of January 2018, and the product was only stocked in 1 National Health Service (“NHS”) facility.
- Viceroy have begun contacting international regulators to present evidence.
- A major stumbling block to regulatory approval, as indicated by UK regulators, is the lack of independent research into MiMedx products’ efficacy and significant difference between company funded/sponsored reports and limited independent patient data.
- Viceroy have uncovered an AmnioFix study conducted by Forest Park Medical Center employee, John Dulemba, and MiMedx consultant and former Matria healthcare Director of Clinical Research, Niki Istwan.
- The study has no disclosures on compensation or relationships with MiMedx.
- Istwan appears on multiple MiMedx studies sometimes as a MiMedx consultant and other times as an “independent”. We believe this obfuscation of relationships to the company is intentional and used by MiMedx to create an illusion of independence. MiMedx does not report payments to Doctors despite the legal requirements.
- One of three individuals recently indicted for fraudulently accepting payments from MiMedx was also part of a clinical study into MiMedx products. The implication that MiMedx clinical research is directly influenced by the Company is likely to deter international approval altogether. More so for paying bribes to Doctors. MiMedx denied paying bribes or inducements in legal filings and illegal short selling commentary, but the Grand Jury disagrees.
- MiMedx is in breach of federal procurement regulations (FAR/DFAR) due to the conditioning of settlement agreements and litigation settlements with former employees and whistleblowers on a requirement for withdrawal of complaints to, and prohibition of communication with, regulatory authorities. We have reported this to the relevant authorities and believe their findings will corroborate our own.
For further background on this issue, please refer to Viceroy’s MiMedx Greatest Hits report:
Viceroy are happy to report that, as of this morning, MiMedx has removed ~50 incriminating “short selling commentary” responses to critics, including Viceroy Research, Aurelius Value, Marc Cohodes, journalists and employees.
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Over the past eight months, Viceroy have conducted an investigation into MiMedx Group, Inc (NASDAQ:MDXG). We have presented our research over the course of 20+ reports which can be on our website.
In the interest of those who have only recently begun following the story, Viceroy have decided to consolidate the major aspects of all 20+ reports into one document, organized by topic.
PDF Download Link – Greatest Hits MDXG
This is still a lengthy document however readers should be conscious that it is a combination of over 20 separate reports, which collectively is still small sample of the hoard of data Viceroy have provided to regulators.
When we began our investigation into MiMedx, we were shocked by the sheer volume, brazenness, extent and historic precedence of the fraud being perpetrated by the company. MiMedx management has yet to acknowledge any wrongdoing, remaining unrepentant despite the existence of several federal investigations into the company.
We reiterate our opinion that due to the overwhelming nature and amount of evidence against the company we believe MiMedx is a robust fraud, entirely uninvestable, and worth $0.00.
We encourage any persons with further evidence of fraud within MiMedx’s operations to lodge an anonymous report with regulators through the following channel.
Alternatively, Viceroy are happy to take the heat on publishing more evidence of malpractice at MiMedx, which we will treat with the utmost level of confidentiality. You can reach us at email@example.com.
Further reading on MiMedx’s criminal activity can also be found on:
Discoveries by CTS Labs’ research into AMD flaws eliminate AMD’s competitive advantage in enterprise server segments and the company’s price competitiveness in retail aspects can no longer be justified.
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The company’s rhetoric is that this is a non-issue hinges on the non-argument that administrator access must be established in order to exploit the vulnerabilities identified by CTS. This is short-sighted as the surrounding statement that most hackers will not have the know-how to exploit these vulnerabilities.
CTS have recently released a video showing the exploitation of AMD’s vulnerabilities to completely circumvent Windows Credential Guard and obtain decrypted passwords. AMD management specifically highlighted Windows Credential Guard as a key obstacle to the execution of CTS Labs’ identified exploits.
The video can be viewed in full here: https://www.youtube.com/watch?v=8YQaWIWbzhI&feature=youtu.be
Viceroy believes the practice of giving AMD discretion as to when, if and how it reports its own vulnerabilities facilitates poor corporate disclosure and keeps stakeholders in the dark. This is not how free financial markets operate for a reason and is validated by the SEC’s most recent statement2 relating to cybersecurity flaws: we would similarly not give fraudulent companies the discretion as to if and when they inform their investors they are a fraud.
- Ryzen and Epyc processors facilitate tremendous freedom of access to customer’s data –The identified vulnerabilities in AMD’s EPYC and Ryzen processors give hackers the ability to entrench malware at the hardware level, making them virtually undetectable and untouchable by security products. By abusing these vulnerabilities at the Secure Processor level, malware characteristics can give hackers unlimited control over entire networks. None of the vulnerabilities identified by CTS, both firmware and hardware, require physical access to computers to be exploited. The continued sale of these processors puts customers at significant risk.
- The security protocols that AMD have been promoting put customers at unacceptable risk to vulnerabilities identified by CTS – We expect AMD cloud customers including Microsoft Azure, Baidu, DellEMC and TenCent will flee in the short term given the serious nature of chip flaws. AMD is unlikely to be trusted in this space again.
- One Ryzen chip could endanger an entire enterprise network – Vulnerabilities identified in the Ryzen chip allow hackers to perform credential dumps on infected Ryzen workstations even if the latest security mitigations are employed. Malware can quickly spread to other workstations throughout enterprise networks, regardless of whether they use a Ryzen chip or Intel. No prudent CISO or CTO will risk their network or their security by buying a Ryzen chip over more secure competitors.
This report expands on the financial impact of the CTS Labs vulnerabilities, specifically the impact of future earnings and possible legal liabilities that Viceroy believes will arise against the company. Viceroy have appointed lawyers to assess the reliability of the security claims made by AMD considering the basic level flaws that have been identified.
Viceroy present further evidence of MiMedx illegally selling on reimbursement, adding our already extensive evidence of pervasive fraud.
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Viceroy has obtained documents detailing a legal dispute between MiMedx and Mad River Community Hospital (“Mad River”). The documents clearly outline MiMedx’s fraudulent sales methods including misrepresenting reimbursement rates for products and “marketing the spread”.
This report details the serious misconduct and underhanded sales tactics of MiMedx personnel in California, which executive management were certainly aware of given the ensuing litigation. As we have demonstrated over 20+ reports, these types of improprieties are commonplace throughout the organization. Never before have our legal advisors or consultants come across such gross and serious misconduct.
The Mad River documents also show MiMedx engaged in “selling on reimbursement”, contrary to a several laws and regulations and some alleged MiMedx policies.
- MiMedx sued Mad River for non-payment of invoices for EpiFix and AmnioFix products. Unfortunately for MiMedx this is where the story becomes compelling for law enforcement and regulators.
- MiMedx misrepresented to Mad River the reimbursement rates for its EpiFix and AmnioFix products, as well as misrepresenting insurer’s attitudes towards these products. Several insurers considered MiMedx products “experimental and un-reimbursable”.
- Following Mad River’s failure to pay, MiMedx sent “reimbursement” specialists to Mad River who upheld that MiMedx’s represented reimbursement rates were correct. Mad River believes that this was simply a manner of continuing the ruse while raising further invoices.
The Mad River filings portray (we believe accurately) MiMedx as third-rate con-artists.
Contrary to Parker H. Petite’s rhetoric of ‘Good Business Acumen’ and persistent denials of “marketing the spread”, this report will unlawful practices that MiMedx, including “marketing the spread”. This is the very tip of the iceberg as law enforcement and regulators have been made aware of.
It is Viceroy’s intention to continue the dialogue with MiMedx’s auditors and regulators to bring about the prosecution of Parker H. Petit.
In the wake of mounting evidence of fraud, illegal revenue recognition systems, retaliation against whistleblowers and concealing evidence from investors, we immediately call for Parker H. Petit’s resignation.
This post highlights the incriminating testimonies from MiMedx employees, associated entities and attorneys, which have subsequently been sealed by the company to conceal evidence from stakeholders.
The order to seal these documents came only after Viceroy’s highlighted that AvKare “didn’t do anything”, according to Mike Carlton (MiMedx VP of Global Sales), but only served to facilitate MiMedx’s channel stuffing & other suspicious activities. Parker H. Petit, knew investors would quickly realize he was misleading them – the information was incriminating MiMedx if left unsealed.
Parker H. Petit & MiMedx continuously attempt to sweep criminal actions and contradictory statements under the rug – in this instance, they sealed incriminating deposition transcripts. Fortunately, Viceroy had already obtained these records prior to the motion to seal bring filed with the court.
We are disclosing the documents in the public interest:
New insights on MiMedx instructions to physicians on how to fraudulently increase compensation.
Following the release of our previous report titled “Viceroy release MiMedx EOB emails”, Viceroy Research has been contacted by physicians corroborating MiMedx’s role in distributing EOB to fraudulently increase Medicare reimbursement. This occurs through the reclassification of AmnioFix products as EpiFix products in order to obtain Medicare reimbursements.
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MiMedx’s recent nonsensical responses to our research have been evasive and does not acknowledge that at its core, the practice construes Medicare fraud. In order to demonstrate this, Viceroy set a Honeypot. MiMedx in their desperation to mislead investors, have taken our bait.
While the issue of reclassifying MiMedx product to exploit federal billing facilities was a major issue, there was another underlying element to the EOB.
Consider the following: in principle, Medicare reimbursements cover 80% of the cost of any treatment used as well as 80% of the Medicare application fee. Typically, this means a reduced payment for the patient, however by utilizing a larger graft than is necessary a physician can be reimbursed more than the cost of treatment.
Per the Rosenberger email, how can MiMedx justify physicians PROFITING from Medicare when system is intended to cover a PORTION of costs?
Viceroy yesterday showed MiMedx has zero credibility regarding their statements. Previously MiMedx had state to investors AvKare wasn’t an intermediary, controlled sales and it was all lies. MiMedx know full well what the implications of Mike Carlton’s deposition under oath means. There is no commentary, statements issued by MiMedx are purely intended to manipulate a situation where blind and naive analysts continue to promote the stock.