Pete Petit, founder and former CEO of MiMedx, and the company's former COO William Taylor were charged Nov. 26 with accounting fraud, reports the Atlanta Business Chronicle.
An indictment was unsealed in Manhattan federal court charging the two executives with securities fraud offenses for participating in a scheme to fraudulently inflate MiMedx's revenue.
Prosecutors allege that Mr. Petit and Mr. Taylor deceived the Securities and Exchange Commission, auditors and investors by "repeatedly misrepresenting the financial condition of a publicly traded company."
The charges relate to the allegedly fraudulent manipulation of revenue in the second, third and fourth quarters of 2015 as well as for the full year 2015.
MiMedx develops implants from human placental tissue, skin and bone for a variety of specialties including spine, orthopedics and sports medicine.
Mr. Petit and Mr. Taylor both deny the charges and appear Nov. 27 in Atlanta federal court.