Short Seller Marc Cohodes Unveils the Magnitude of Pharma Fraud: Part Four

Short Seller Marc Cohodes Unveils the Magnitude of Pharma Fraud: Part Four

January 9, 2020 19 By Luis Garrison


Let’s get into this the nature of it because you know, you you called this the biggest fraud you’ve ever seen And you’ve shared with me some of the stuff over the last year as you’ve gone through it and You know every time you share this stuff with me I my mind is boggled I just I just I just can’t believe the scope of this thing but let’s talk about some of the Instances of fraud that you’ve uncovered and and explain how they work So a lot of people hear phrases like channel stuffing and won’t understand what it is a round tripping So let’s this let people or help people understand just a sheer scope of this thing That’s a good idea. I think You know, I talked about the binders that I put together I think maybe if I read the letter to the Auditor it’ll Give people and you sort of the pattern if you want to dig into it. I said, dear mr. Brach Please see in closed primary source documents court documents an analysis on what I believe to be twelve categories of serious wrongdoing at my medics Each category is bound separately Some categories are too large from one binding and are therefore bound across multiple separate volumes The additional volumes in these categories have the same title as the first volume in the category followed by the word continued Because I believe I’ve identified twelve distinct categories of egregious wrongdoing I have dubbed my medics and around-the-clock fraud each category for an hour Please see the following page for a table of contents. Thank you. And please contact me if you wish to discuss further You can reach me at blank IPO boxes above best regards mark CODIS around-the-clock fraud at magnetics the table of contents one Medicare fraud Healing reviews pay one paid miss coding etc Two endangering patient safety tissue miss tagging adverse events cover-up FDA Amnio, fix injectable letters cover-up etc. Three undisclosed federal criminal investigations and evidence destruction for bullying threats extortion threatening sell side analysts to drop coverage perjury five abuse of process six old boys club rape sexual harassment racial diversity Etc. Seven influence peddling eight securities frauds lies to investors and to the SEC nine accounting fraud improper revenue recognition Channel stuffing SGA fraud etc ten kickbacks bribery and improper inducement Especially of physicians eleven stock fraud paying bills and receivables with company stock strongman buyback flattering cash from operations, etc, and seven criminal Organization targeting of promoting known criminals That’s that’s some list. That’s some list if we go into depth and all those things we’ll be here for weeks and I’m sure there are plenty of people watch this who wish we would but but let’s pick a couple of the of the of the major ones the ones that are The thickest behind us perhaps because you know those binders that that’s a hell of a lot of work. There’s two years essentially of hard work and I wanted people to see this and hear this to understand that this isn’t picker stock maker you exit Accusations wait for the stock to drop and cover it, right This is as you’ve said this is 3:00 in the morning till 10:00 at night 365 days a year so let’s get into a couple of the ones that you think are the most important well in this and this is the crazy thing is and It’s important to note that Aurelius and not my dog her alias value who is all over my medics He exposed a lot of it Viceroy who’s Frazier pairing He’s exposed a lot of it Joe, Munda who was silenced at first analysis. He exposed a lot of it and I exposed a lot of it and have a lot of it the crazy part is Life would be a whole lot easier if there was a wolf pack or there was a cabal Where everything would have been orchestrated? but I can assure you there never was it would have been so much easier if there was a group or a gang or this any other because this thing is so Complex in so wide-ranging and so end-to-end I don’t know a lot of those guys sources and they don’t know my sources and Everyone has different people but what I can tell you on the accounting and business side Very simple with channel stuffing is you make a shipment and book something as revenue and full profit without there really being an order or demand for the product I had a Doc call me up out of Vegas after Following me on Twitter and hearing a periscope and he says you have no idea What goes on just? in Vegas Which is dirty and he introduced me to a hospital administrator other doctors and sent Me fake my medics invoices of product that was shipped but never ordered in Vegas that was picked up and signed forth through FedEx reps by my medic salespeople or distributors which my medics claimed they didn’t have so in other words You’re dr. Williams The funny thing is this guy’s name. One of the doctors was Williams You never ordered the product. I Never not once It gets shipped to you It gets intercepted by me a rep Who signs for you immediately get billed for it half a million bucks the rep or agent gets a 30% Commission on that and There you have it you have product that you never ordered. He then complains To someone higher up. I never ordered this product. Take it back This said or the other the quarter has now ended Right. It’s booked as sales and the Rigmarole and email chain back and forth for them to try to undo. This is truly awe-inspiring and It went from him to another rep and resold and I think it made its way into Korea Where it shouldn’t have gone in my medics Actually had someone Rejigger their internal return software so would never show up as a return and just be resold again It’s insane so they were booking on many many many occasions probably every quarter That was this all happening around quarter into to make the numbers always a quarter nth. It was always a quarter end It was basically Whether it’s into the VA VA intermediaries Doc’s made up organizations Saudi Arabia, I mean last night We had someone on the phone Who was past tense very high up at my medics detail what went on on a Christmas Eve on a shipment into Saudi Arabia, which was never never ordered and never used and returned and never credited back in returns Of a significant amount of money. I think it was four to five million dollars at quarter in and Everything was run for Pete To make or beat quarterly numbers. He used to brag in every letter in every Correspondence to shareholders that they’ve met or exceeded 26 out of the last 27 quarters What great company could possibly? ever do this Many people question. Is it even made up this? These results are so spectacular and as it turns out it’s all made up. It’s 100% made up and Distributors sub distributors Agents people who were created to book revenue that was completely fake Happen quartered a quarter and on an exponential basis and I detailed to The parties that be and relevant parties were this is who it came from Documented it in the whole thing, and that’s and that’s part of the tangle. So while my medics would claim they did Four hundred million annually in sales. I Think when all the votes are cast and they’re still monkeying around to this day. Even with the new management They’re still playing different games, but the same kind of games to make numbers up. I Mean maybe a hundred million is real not even and It’s incredible it’s so incredible that Ernst & Young not only walked They walked and said there’s no internal controls to even verify any number going all the way back to 2012 and I think part of that is Which is another one of those sub categories As I’m led to believe from numerous people that servers and information was destroyed that when these guys Began to get investigated Stuff was destroyed evidence was destroyed and taken off servers You would say How do you say this or how do you know these things? well at the Annual sales meeting a year ago. I think was the end of January Parker got on stage and went off on me some former employees Frazier pairing and others about this burning desire to bad-mouth and whatever the company whatever his fiction was And they actually Handed out thumb drives to people That had very sensitive information that used to be on servers are on the hard drive sensitive information like Isaacson’s campaign asking for money in emails with Debbie Dean who’s Pete’s off-camera, love interest Right, and she’s still there you know running trap for him and given him trade secrets back even though he’s been he’s been fired and someone asked why are you handing out these thumb drives and someone responded that all the information was taken off the main servers and they’re so stupid at my medics and they’re so greedy and They think they’re so invincible that people can’t figure it out or won’t figure it out or How and you’re on the phone with this person yesterday? how universal II hated Peters and was for what they did to people and how they treated people That it wasn’t as much and it’s not as much Helping me It’s more bringing Pete to justice and exposing him for all the things that he’s done to people And he has his inner circle and He’s operated and always operates that he’s above the rule law and he can do anything Because he has his paid political People like Isaacson and then Tom price and he has his mafia Ask lawyer Margaux French who can just bully people into submission so Whether it’s channel stuffing whether it’s kickbacks paying clinicians destroying records Saying fuck you to the FDA Which they do and they do to this day he gets away with things that the average person wouldn’t Because he thought and or thinks that he has it all covered through his political operatives and It’s truly remarkable so he buy companies and Create companies just to selling product to never be returned. He’d give distributor stock just for common stock just for taking Product that shouldn’t be taking product he’d create Sub distributors and agents to compete against his own his own people He’d create pods physician-owned distributors in Various states to stuff doctors to use the products to give them stock it’s everything it’s son you’ve got proof of all this document approve all of it for I I Have documented proof of all of it and the egregious egregious egregious over-the-top stuff. I continue, I I have no auditor to send it to anymore cuz Ernst and Young as quit and You ask yourself How can the stock? Even be allowed to trade if the CEO CEO Oh have been fired for cause but the company won’t disclose what the cause is not Only can the numbers not be relied upon the auditor said they don’t even have controls or any systems in place for them to even find a baseline to even come up with a number and Yet this thing to this day still trades it roughly a 300 million cap And that’s if if you even believe the shares outstanding and I think there’s far more shares out than anyone even knows So I Have a significant problem with the FDA I’ve written I wrote the FDA a letter March 8th, I Wrote the same people a follow-up letter March or may 25th Sent them a subsequent letter a few months back finally looping in Gottlieb who oversees this outfit and let me make it really clear They failed inspections back into – in 2016 and some of the issues include filth Bacteria, non testing of product now these FDA inspectors are FDA. These are for 83 Someone named Elliott favors put out a report and be detailed I think 13 FDA 483 now 43 43 is a notice It’s a notice that something is wrong in plant. You sort of have let’s just call it between 15 and 90 days to fix or helping health inspector at a restaurant right fix this fix this or else right? You don’t fix it. You get a warning letter you get a warning letter You’re sorta out of the game and you under obligation to disclose those to shareholders. Oh, no yeah, it’s sort of important but So not only have they not to this day, and I think we’re kind of January of 2019 they still haven’t cleaned up the 483 From 2016 the house is possible how Can this possibly happen? Well, there’s one of two ways either the FDA and that would be Mary malarkey Robert sauce Vil Donald Ashley Ellen Morrison and The head man got lead Either these people are so grossly incompetent That they can’t figure this out or Someone has been paid off bribed or incentive to look the other way It’s one of the two and the crazy part is in my letters. It’s not about the stock price It’s about fucking public safety in the FDA either through price Or Isaacson or god knows who else? has been Incented or Coerced or bent to look the other way and they don’t respond to my letters For all I know they throw them in the trash but I keep Barking because it’s not right It’s hugely wrong And they make a lot of money my medics there have been grand juries convened About DoD Doc’s over using this product some people have used upwards of a million dollars a year of this shit and it’s unapproved and it’s going into Veterans and and this is unapproved dangerous witchcraft that the FDA said back in 2014 Right, they got an untitled letter which basically said you shouldn’t be selling this stuff and you sure can’t be marketing it right? You can’t be marketing it and I have a letter from Pete – Mary malarkey Basically saying fuck you, we’re gonna keep selling it Great But then you fail inspections. You don’t clean up the inspections You don’t make it right and you keep selling this stuff and they recently had a meeting as In weeks ago at my medics To try to attempt to finally address situation But they haven’t not-not-not Stopped selling the stuff. They keep selling it. Like there’s never an issue and it’s all being covered up It’s all being covered up. I Emailed Cole’s this who’s the so-called acting CEO? They know that I know But they keep doing it they keep Doing it To me listen to listen and know I’ve I’ve looked through a pile of documents you put here this hi I’m astonished at how many people would have to be involved in this thing? Right. I mean this is not one guy or two guys trying to get cute this this is a systemic operation That would have to include so many people at the top level has to be Unfeasible to me. Well, I say this to people I waste my money in my attorney bills, right but I need to always stay on the right side of right and He keeps me on the right side or right all the time but in a different life I Would come back and just bribe politicians But right I would get my Johnny Isakson right because if you get a Johnny Isakson who says and he said on the record that Pete is a great man a Lifelong friend in a great Georgian you get a guy like that in your pocket an 80 year old senator who’s been doing this forever Right, you get a guy like that where his chief of staff flies to the Atlanta journal-constitution? and lies to the Wall Street Journal and Pete puppets him around you make a call I guess to the FDA and says look the other way leave this guy alone You make a call to the SEC investigate this guy quash this investigation This shit goes on because I am living walking talking proof that he can order an FB I investigation on me Not an investigation a visit to tell me to stop what I’m doing or there will be consequences You