This is the fourth part of the groundbreaking January 2019 interview between Real Vision co-founder Grant Williams and legendary short seller Marc Cohodes. In this clip, Cohodes continues the story of his battle to expose the truth about biotech giant MiMedx. Cohodes reveals what he believes to be the twelve categories of MiMedx’s improprieties. This clip is excerpted from a video published on Real Vision on February 1, 2019 entitled “Fraud, Intimidation and Truth: Marc Cohodes’ Last Stand.” Watch more Real Vision™ videos:
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Short Seller Marc Cohodes Unveils the Magnitude of Pharma Fraud: Part Four
Transcript:
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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 and the other, because this thing is so
complex, and 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 a
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 MiMedx invoices, a product that was
shipped but never ordered in Vegas, that was picked up and signed for through FedEx reps by MiMedx
salespeople or distributors which MiMedx claim they didn't have.
So in other words, you're Dr. Williams- the funny thing, this guy's name- one of the doctors was Williamsyou never ordered the product. Never, not once. It gets shipped to you. It gets intercepted by me, a rep,
who signs for it. 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, that, or the other. The quarter has now
ended. It's booked as sales.
And you rigmarole, and email chain back and forth for them to try to undo this. It's 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. And MiMedx actually had someone rejigger their internal return software so it 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.
GRANT WILLIAMS: Now, is this all happening around quarter end that you'd make the numbers up?
MARC COHODES: Always at quarter end. It was always at quarter end. Whether it's into the VA, VA
intermediaries, docs, made up organizations, Saudi Arabia- last night, we had someone on the phone who
was- past tense- very high up at MiMedx to tell 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.
It was significant amount of money. I think it was $4 to $5 million at quarter end. And everything was run
for Pete to make or beat quarterly numbers. He used to brag in every letter and 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, these results are so spectacular. And as it
turns out, it's all made up, it's 100% made up.
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