Carlsbad Couple Admits Selling Unapproved “Energy Wave” Medical Devices

Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976

NEWS RELEASE SUMMARY – September 15, 2015

SAN DIEGO – David and Sandra Perez pleaded guilty in federal court today to charges relating to the sale of “Energy Wave” medical devices via the Internet – devices they marketed as an effective treatment for cancer and AIDS, yet had not received necessary approval from the U.S. Food and Drug Administration.

According to their plea agreements, the couple marketed the Energy Wave device over the Internet from their home in Carlsbad. They have since moved to Oregon. David Perez admitted scheming with the manufacturer of the devices, David Arthur, who marketed the “Energy Wave” device over the internet using the website www.myenergywave.com. Arthur previously pleaded guilty and is awaiting sentencing.

As detailed in court, the Energy Wave device consists of a micro-current frequency generator with a digital readout, two stainless steel cylinders and two personal application plates with connectors and lead wire for the cylinders and plates.  Users were provided with an operating manual and a list of Auto Codes that set forth hundreds of digital settings for the device, directed to specific conditions from abdominal pain, AIDS and diabetes to stroke, ulcer and worms. The Auto Codes and Manual advised users to connect the cylinders or plates to the machine and touch them to the body for a recommended run time to treat each condition.

David Perez admitted selling each device for approximately $1,200 to $1,500, and receiving gross proceeds of approximately $271,000.  He also acknowledged that he intended to defraud and mislead the FDA by attempting to evade the agency’s oversight of medical claims made regarding the Energy Wave device by maintaining a separate website (rifecodes.com) to which he referred customers who needed to obtain the auto codes that allegedly were effective in treating the various medical conditions.

Sandra Perez admitted assisting her husband by shipping the “Energy Wave” devices and depositing the funds necessary to pay coconspirator David Arthur for the devices. The couple admitted that they knew or should have known a number of their customers were vulnerable because they had purchased the device in an attempt to cure cancer, and that they were marketing the device without the proper FDA approvals.

“Those who are sick and desperate for relief are particularly vulnerable to scams, and we are doing our best to protect them from people who exploit the weak for their own financial gain,” said U.S. Attorney Laura Duffy.

“The FDA oversees approvals for medical devices to ensure that the public is protected from devices that are unsafe or ineffective,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to commit our efforts to remove potentially dangerous medical devices from the U.S. marketplace.”

David Perez is scheduled to be sentenced January 11, 2016 before U.S. District Judge Roger T. Benitez.  His wife was sentenced by U.S. Magistrate Judge William Gallo to one year of probation, and ordered to perform 100 hours of community service and pay restitution of $1,495 to a purchaser of the device.

During today’s hearing, Judge Gallo stated:  “I believe you had to know at some level that this was junk science.”

DEFENDANT                                              Criminal Case No. 15cr0360-BEN                         

David Perez                                                    Age: 60

Medford, Oregon

Sandra Perez                                                   Age: 55

Medford, Oregon

SUMMARY OF CHARGES

David Perez:

Conspiracy– Title 18, U.S.C., Section 371

Maximum penalty: Three years in prison and $250,000 fine

Sandra Perez:

Sale of Unapproved Medical Devices-Title 21, U.S.C., Sections 331(a) and 333(a)(2), a misdemeanor

Maximum penalty: One year in prison and $100,000 fine

AGENCIES

Food and Drug Administration, Office of Criminal Investigations

Homeland Security Investigations

Postal Inspection Service