Seattle – Stephen Baird, the disgraced CEO of dental device firm S-Ray, Inc., has been indicted by a federal grand jury for ten counts of wire fraud. The charges stem from his alleged scheme that defrauded over 200 investors out of $10.7 million between 2012 and 2021.
According to U.S. Attorney Nick Brown, Baird, 67, made false statements to investors about the development of a revolutionary ultrasound device for dental imaging. Despite claiming S-Ray was on the brink of success, he secretly siphoned off investor funds for personal gain, including a luxury car and private residence.
Baird’s fraudulent claims included assertions that the FDA had granted market clearance for the non-existent product. In reality, S-Ray never developed any ultrasound device capable of producing usable images and was never authorized to sell any products by the FDA.
By 2019, S-Ray was essentially defunct, with its last employee leaving in April. Yet, Baird continued to solicit investments until March 2021, falsely portraying the company as worth $400 million. He misappropriated at least $6.7 million of investor funds for personal use.
Baird’s investors are now out of luck, as S-Ray’s corporate account held only $13,000 by the end of 2021. The Securities and Exchange Commission (SEC) filed a civil securities fraud action against him in March 2022, resulting in an order imposing civil penalties and barring him from serving as an officer or director of certain companies.
Wire fraud is punishable by up to 20 years in prison. Baird’s arraignment on the indictment is scheduled for February 16, 2023. The case is being investigated by the FBI and prosecuted by Assistant United States Attorney Seth Wilkinson.
Related Federal Cases
- Contractor John McClure Faces Decade-Long Prison Term in Fraud Scam · Washington
- Maxime Maiga Sentenced for $400,000 Wire Fraud · Maryland
- Mark Spangler Sentenced to 16 Years for Wire Fraud and Investment Advisor Fraud · Washington
- Vancouver Musician Anderson Gets 46 Months for Wire Fraud · Washington
- $3B Recovered in Health Fraud Crackdown · Washington
Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
