LOS ANGELES – A Tarzana man pleaded responsible as we speak to federal prison prices for operating an almost $6 million scheme during which he knowingly bought used skin-tightening medical units that had been intentionally misbranded as new, in addition to counterfeit units that he claimed had been for use with fat-reducing laser machines.

          Kambiz Youabian, 49, pleaded responsible to a two-count data charging him with mail fraud and introducing a misbranded medical machine into interstate commerce.

          Based on his plea settlement, Youabian owned and operated MSY Applied sciences Inc., a West Los Angeles-based firm that did enterprise beneath the names “Thermagen” and “International Digital Provides” (GES).

          From March 2016 to June 2022, Youabian bought used transducers, that are medical units used to tighten the pores and skin of dermatology sufferers by delivering ultrasound power to a affected person’s pores and skin. Used correctly, transducers are designed to supply not more than 2,400 therapies. After this quantity is reached, the units are thought-about depleted and needs to be disposed of in accordance with well being code laws.

          Via GES, Youabian bought depleted transducers for nominal sums, usually $50. Youabian then remanufactured the depleted transducers and added fabricated serial numbers to make the transducers look like new.

          Then, by means of his Thermagen firm, Youabian fraudulently marketed and bought – for a lot of occasions greater than he paid for them – the remanufactured transducers to well being care suppliers and clients as “new” transducers with 2,400 remaining therapies. To hide his connection to Thermagen, Youabian used names of fabricated Thermagen staff on correspondences with sufferer suppliers and used out-of-state business mailboxes for Thermagen’s return of deal with on shipments, which he despatched by means of the united statesmail.

          For instance, in February 2020, Youabian, by means of Thermagen’s web site, bought a tool falsely marketed as “new” and “containing 2,400 traces” – and with a retail value of $1,695 – to a purchaser. Youabian then shipped the machine – which contained a pretend serial quantity – from Los Angeles to Florida by way of the US Postal Service.

          Youabian additionally shipped counterfeit PAC keys, medical units used to function laser machines designed to scale back fats on sufferers, by means of the mail.

          He then transferred his ill-gotten beneficial properties to checking account his managed, together with accounts he opened within the names of MSY Applied sciences, himself, and his au pair.

          In June 2022, regulation enforcement executed search warrants at Youabian’s dwelling and the GES-Thermagen workplace in West Los Angeles.

          Within the GES-Thermagen workplace, regulation enforcement seized 75 transducers in numerous states of refurbishment, a producing workstation containing instruments and transducer components, and detailed information of GES and Thermagen’s bills.

          Youabian admitted in his plea settlement to unlawfully promoting 1000’s of medical units, together with transducers and PAC keys, and receiving at the very least $5,821,474 in fraudulent proceeds that ought to have been paid to the businesses which are the only real U.S. distributors for these units. Youabian additionally admitted to inflicting reputational hurt to the machine producers and distributors of those medical units.

          United States District Decide Dale S. Fischer scheduled a June 26 sentencing listening to, at which period Youabian will face a statutory most sentence of 23 years in federal jail.

          The U.S. Meals and Drug Administration Workplace of Felony Investigations and the US Postal Inspection Service investigated this matter.

          Assistant United States Legal professional Gregory D. Bernstein of the Main Frauds Part is prosecuting this case.