Carr: Superior Healthcare Co-Founders Banned from Marketing Stem Cell Treatments and Ordered to Refund Over $3.3 Million to Georgia Consumers

ATLANTA, GA – Attorney General Chris Carr today announced that the co-founders of Superior Healthcare, LLC and a related company will pay $1,845,000 in civil penalties and $3,310,146 in refunds to 479 Georgia consumers as the result of a complaint filed by the Attorney General’s Consumer Protection Division and the Federal Trade Commission (FTC) in 2021. Superior Healthcare, LLC, Regenerative Medicine Institute of America, LLC d/b/a Stem Cell Institute of America, LLC, and Physicians Business Solutions, LLC, along with co-founders Steven Peyroux and Brent Detelich (collectively, “the Defendants”), operating as a common enterprise, aggressively marketed, offered, and sold expensive, unproven stem cell products to consumers, the vast majority of whom were older or disabled adults. The Defendants are also permanently banned from marketing stem cell therapy, per a court order issued on Dec. 26, 2024.

“The use of unproven products or therapies poses a significant risk to a person’s health and financial well-being,” said Carr. “Businesses that make unsubstantiated claims and violate the law will be held accountable, particularly when they target our older or at-risk adults. This type of deceptive activity will not be tolerated, and we will continue to pursue any company that seeks to exploit our most vulnerable populations.”

Through various channels, including seminars, social media platforms, an infomercial, websites, YouTube channels, email blasts, and print media, the Defendants falsely advertised to the public and healthcare practitioners that its stem cell products:

• Cure, treat, or mitigate a variety of orthopedic diseases and health conditions; and
• Are comparable or superior to conventional treatments for these diseases and health conditions.

However, these claims are not substantiated by competent and reliable scientific evidence. 

Superior Healthcare, LLC generated millions of dollars in revenues by advertising and selling the products directly to Georgia consumers and by contracting with third-party clinics throughout Georgia to administer injections in exchange for a fee. The stem cell products cost approximately $5,000 per joint injection, with patients often receiving more than one. Superior Healthcare, LLC marketed and sold the products to many elderly and disabled consumers. 

Superior Healthcare, LLC stopped selling stem cell therapies in 2019 and filed for bankruptcy after the State commenced its investigation.  

Summary Judgment

Following extensive litigation, in March 2024, the U.S. District Court for the Northern District of Georgia issued a summary judgment opinion and order in favor of the State of Georgia and the FTC on all counts. In granting summary judgment, the Court found that the Defendants “engaged in a common enterprise through which they made false and misleading representations about the efficacy of stem cell therapy treatment” and that “these representations constitute ‘unlawful acts and practices’ prohibited under the [Georgia Fair Business Practices Act]”.  

Orders for Injunctive and Monetary Relief

On Dec. 26, 2024, the Court issued orders for injunctive and monetary relief . The first order permanently bans the Defendants from advertising, marketing, promoting, offering for sale, or selling any regenerative medicine treatments, including any treatment or therapy that falls under the definition of stem cell therapy. The order also prohibits the Defendants from providing others with the means of making false and misleading statements about regenerative medical treatment.

The second order requires co-founders Steven Peyroux and Brent Detelich to pay $3,310,146 to the State of Georgia to provide refunds to 479 Georgia consumers. In addition, Peyroux, Detelich, and Physicians Business Solutions are required to pay $1,845,000 in civil penalties based on the Court’s findings that the Defendants acted in bad faith, that there was significant injury to the public, and the importance of vindicating the authority of the Georgia Attorney General’s Consumer Protection Division. The Court entered a total monetary judgment of $5,155,146. 

The Attorney General’s Office worked in cooperation with the FTC in bringing the action announced today.