California Man Sentenced to 2½ Years in Prison for Selling Used and Counterfeit Medical Devices Used for Skin Treatment

A Tarzana man was sentenced to 30 months in federal prison for running a nearly $6 million scheme in which he knowingly sold used skin-tightening medical devices that were deliberately misbranded as new, as well as counterfeit devices that he claimed were to be used with fat-reducing laser machines. Kambiz Youabian, 50, was also ordered to pay $5,937,049 in restitution and forfeit $1,685,396 in seized assets. Youabian owned and operated MSY Technologies Inc., a West Los Angeles-based company that did business under the names “Thermagen” and “Global Electronic Supplies” (GES). From March 2016 to June 2022, Youabian purchased used transducers, which are medical devices used to tighten the skin of dermatology patients by delivering ultrasound energy to a patient’s skin. Used properly, transducers are designed to provide no more than 2,400 treatments. After this number is reached, the devices are considered depleted and should be disposed of in accordance with health code regulations.

Through GES, Youabian purchased depleted transducers for nominal sums, typically $50. Youabian then remanufactured the depleted transducers and added fabricated serial numbers to make the transducers appear to be new. Then, through his Thermagen company, Youabian fraudulently marketed and sold — for many times more than he paid for them — the remanufactured transducers to healthcare providers and customers as “new” transducers with 2,400 remaining treatments. To conceal his connection to Thermagen, Youabian used names of fabricated Thermagen employees on correspondences with victim providers and used out-of-state commercial mailboxes for Thermagen’s return of address on shipments, which he sent through the US mail.

You May Also Like