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The San Jose Mercury News reports that the CEO of a spinal implant company was convicted of overcharging the county and San Jose for workers’ compensation reimbursements, prosecutors said.

Trudy Maurer, 68, is head of Implantium, a San Francisco-based company that purchases surgical implants from manufacturers and supplies them to hospitals. Implantium bills workers’ compensation insurance carriers for the devices and is allowed by law to make $250 profit per device. According to prosecutors, the company altered invoices submitted to San Jose and Santa Clara County for workers’ compensation claims, exaggerating the price paid to manufacturers of surgical spinal implants.

Santa Clara County prosecutor Katharina Wells said Maurer and another employee, Tigran Shahsuvaryan, were charged last April with the crimes.

Maurer pleaded no contest on Thursday to four counts of felony insurance fraud. She was fined $50,000 and given a six-month probationary sentence, during which she will be electronically monitored, according to court documents. Implantium previously returned $130,000 to the overcharged insurance companies.

After Maurer serves her sentence, the counts will be reduced to misdemeanors.

“Workers’ compensation fraud impacts all employers in California, pushing rates higher,” said prosecutor Katharina Wells.

The company overbilled insurance carriers for the cost of the implants, inflating the manufacturer’s price by as much as tens of thousands of dollars, prosecutors said.

Santa Clara County and San Jose are self-insured for workers’ compensation.

Prosecutors said it was one of the first such cases against a medical device supplier in the state.

Shahsuvaryan’s case is still pending. Wells said he faces the same charges as Maurer.