Stem Cell Scam Results in Over $5 Million in Penalties and Refunds to Georgia Consumers
Attorney General Chris Carr announced that the co-founders of Superior Healthcare, LLC and related companies will pay $1,845,000 in civil penalties and $3,310,146 in refunds to 479 Georgia consumers following a 2021 complaint by the Attorney General’s Consumer Protection Division and the Federal Trade Commission (FTC). The companies aggressively marketed unproven and expensive stem cell products, primarily targeting elderly and disabled adults, and are now permanently banned from advertising or selling regenerative medicine treatments.
The defendants, including Superior Healthcare, LLC, Regenerative Medicine Institute of America, LLC (d/b/a Stem Cell Institute of America, LLC), Physicians Business Solutions, LLC, and co-founders Steven Peyroux and Brent Detelich, falsely claimed their products could cure or treat various orthopedic and health conditions. The products, which cost approximately $5,000 per joint injection, were advertised as superior to conventional treatments. However, these claims were not supported by scientific evidence.
According to the court, the defendants operated a common enterprise, generating millions in revenue through deceptive practices, including seminars, social media, infomercials, and print ads. Many consumers received multiple injections, significantly increasing their financial burden.
After an extensive investigation, Superior Healthcare ceased selling stem cell therapies in 2019 and filed for bankruptcy. In March 2024, the U.S. District Court for the Northern District of Georgia ruled in favor of the State and the FTC, finding the defendants’ claims to be false and in violation of Georgia’s Fair Business Practices Act.
On December 26, 2024, the court issued orders for injunctive and monetary relief. The first order permanently bans the defendants from advertising or selling regenerative medicine treatments and prohibits them from enabling others to make false claims. The second order requires the co-founders to pay $3,310,146 in refunds and $1,845,000 in civil penalties, totaling $5,155,146.
“This action underscores our commitment to protecting Georgia’s most vulnerable populations from deceptive business practices,” said Attorney General Chris Carr. “We will not tolerate companies exploiting consumers through false claims and unlawful actions.”
The case was brought in collaboration with the FTC, highlighting the importance of federal and state cooperation in holding businesses accountable.
