A press release from the U.S. Attorney's Office says that Atherton resident Bill Facteau, 47, the former CEO of Menlo Park medical device company Acclarent, has been convicted by a federal jury in Boston of 10 misdemeanor charges connected to the sales of Acclarent medical devices.
He was acquitted of 14 more serious felony charges of conspiracy, wire fraud, and adulteration and misbranding.
Bill Facteau. (LinkedIn photo)
Acclarent was sold to Johnson & Johnson in 2010 for $785 million.
According to a press release from a public relations firm, Mr. Facteau's lawyer, Reid Weingarten, said he will appeal the conviction.
The maximum sentence for each count is one year in prison, one year of supervised release and a fine of $100,000 or twice the gross gain or loss.
The statement from the U.S. Attorney's Office says the jury concluded that the two men "caused the unlawful distribution of a medical device known as the Relieva Stratus Microflow Spacer ("Stratus") for uses not cleared or approved by the U.S. Food and Drug Administration."
Prosecutors said the men wanted "to create a projected revenue stream that would make Acclarent an attractive business for either an initial public offering or acquisition."
The public relations firm's press release says "the jury specifically found the product's labeling was not false or misleading, and that the product in question did not lack adequate directions for use. Proof at trial made clear no injuries were associated with use of the device, which was widely used by surgeons to treat patients with chronic sinus problems."