Former hotshot CEO of S-Ray, Inc., Stephen Baird, is now facing the cold reality of the law after admitting to conning investors in a multimillion-dollar fraud scheme. Baird, 68, copped to a wire fraud charge in Seattle's U.S. District Court, U.S. Attorney Tessa M. Gorman announced. This ex-chief of the dental device startup spun tales of an innovative ultrasound device that promised to revolutionize dental care, then used his sales pitch to sucker investors out of over $10 million.
Baird's fraudulent claim that his wiz-bang technology had snagged FDA clearance when it hadn't saw some 200 investors getting taken for a pricey ride to the tune of $10.75 million, as per court documents. Swindled investors were told their funds would fast-track a product to market. Instead, Baird bankrolled a life of luxury, using 62% of the cash – a cool $6.7 million – to lavish on himself and his family, splurging on items including a luxury home on Bainbridge Island and a high-end car.
The disgraced CEO is set to learn his fate come August 2, 2024, when District Judge Richard A. Jones lays down the sentence. But Baird's troubles don't end there. He's agreed to hand over a yet-to-be-determined amount in restitution and property forfeitures – a bid to atone for his investment hocus-pocus. Federal prosecutors, showing some mercy, will recommend Baird serve no more than seven years behind bars.
An SEC lawsuit for civil securities fraud piled on more woes for Baird and S-Ray in March 2022. Judge John H. Chun clamped down with civil penalties earlier in the year, saddling Baird and the company with disgorgement orders and to ensure Baird stays out of the director's chair or from dabbling in certain stock trades.
The FBI's probe peeled back the layers of Baird's scheme, which the Assistant United States Attorney Seth Wilkinson and his special assistant counterpart Jessica M. Ly are prosecuting, aiming to set an example and return some peace of mind to the bilked investors. The full details of Baird's financial shenanigans and the legal journeys can be found on the Justice Department's website.
