It has almost been a YEAR and, though people were warned, the FRAUD at MiMedx is still happening! It’s time for ADULTS to do their jobs! Below is a letter I wrote to Parker about the fraudulent activity happening at MiMedx (or read it by clicking HERE)!
Dear Mr. Petit:
You and I have engaged in a verbal battle over the past few weeks and months about the business practices and accounting at the company you lead, MIMEDX. You have claimed that I am part of a conspiracy to deflate the MiMedx stock price and that I have made false allegations about the company. I, on the other hand, have reported on information provided to me by ex-employees, and I have read the analyses by Viceroy and Aurelius, two companies that you have now sued in what I believe is an attempt to stifle criticism of you and your company.
Now I have received evidence from a current employee, in the form of an email attached to this letter, that raises very serious claims about misconduct by Mimedx and its executives. The employee – who sent the email anonymously because of his or her fear of you – claims the following, among other things (full email attached, with sender’s name redacted):
1. Management has deleted information and evidence from MiMedx’s computers. If true, and if it was done when MiMedx knew about an SEC investigation or inquiry, that may be a crime.
2. You and other managers “instructed people to avoid credits that would have destroyed most quarter sales and today’s [October 10, 2017] announcement is the final straw.”
3. “Mr. Petit was fully aware of the federal VA shelf stuffing in 2014, 15 and 16. By fully, he had dialogue with a number of us and also tasked Lou Roselli and others with avoiding a massive credit to avkare that would have destroyed the company report figures (I have the exact emails).”
4. “Please stop lying.”
5. “Mr. Petit knows the events about the revenue and the conduct of MM
individuals is true including the distributors with obscene orders at the end of
6. There are emails from the US Veterans Administration reflecting concerns
about consignments and shipments by MiMedx of unordered products.
7. MiMedx has engaged in channel stuffing by sending unordered products or consignments to doctors and others and then recording those shipments as sales. “Mr. Petit knows about this, in one quarter alone there was $3M was shelving product to recognize sales when there was no sale. I can show other quarters with $2m+. … Since 2015 I know it’s false.”
8. The employee alleges that he/she has text messages reflecting orders from mangers to create fake sales at the end of multiple quarters, and was told “it would be ironed out; we just had to hit the quarter.”
9. You and other managers have retaliated against employees who raised concerns in the “Dear Pete” letter program that you established for complaints. “People stopped putting in the letters of concern (Dear Pete) when they became a trend of report a problem, get fired …. I and a few others have kept their mouths shut and do as we are told.”
10. “I personally heard Mr. Petit state he would destroy them and their families when speaking about employees.”
11. “When I read the Aurelius and Viceroy Reports [two analysts you have sued] they are sadly accurate. They miss lots of things that I can personally testify to.”
Mr. Petit – you have accused short sellers of improperly targeting your company,
but you don’t seem to understand that a well-run, financially responsible company has little to fear from short sellers or from analysts who write negatively about a company because those companies’ stock prices are largely unaffected by negative criticisms. Your company, on the other hand, has adopted the “attack the critics” tactics of such infamous and now defunct companies as Lernout & Hauspie, Media Vision Technology, NovaStar Financial, AremiSoft, California Micro Devices, Network Associates, Concordia International Corp., Home Capital Group, Krispy Kreme Donuts, Boston Chicken, and others.
I ask you publicly to stop attacking the critics and buckle down and respond to the criticisms. You may have to do it twice or more: once to the public and then again to government regulators and prosecutors.
But, as Justice Louis Brandeis once wrote: “Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman.”