Former Bainbridge Island, Washington, resident fails to appear for sentencing in $10.7 million fraud scheme

Defendant was found deceased 

Seattle – Stephen Baird, 69, the former CEO of S-Ray, Inc., is now a wanted man for failing to show up for sentencing in U.S. District Court in Seattle announced U.S. Attorney Tessa M. Gorman. Baird formerly of Bainbridge Island, Washington, defrauded investors by making false statements about S-Ray’s product development and falsely claiming the company had obtained FDA authorization to market a dental device. Baird was indicted in February 2023 and pleaded guilty in May 2024.  His failure to appear means he may face additional prison time for violating his appearance bond. Judge Richard A. Jones issued a warrant for his arrest.

If anyone is aware of his whereabouts, they are asked to contact the FBI at 206-622-0460 and ask for the duty agent.

Baird’s scheme began in 2012 and defrauded some 200 investors of $10.75 million. Baird told investors their funds would be used to bring a product to market, but Baird instead used more than half of investors’ money—at – some $5.7 million – for his and his family’s personal expenses, including to purchase a luxury car and a waterfront house on Bainbridge Island.

Many of the investors were in court today, ready to speak about the web of lies Baird told to take their money. Some investors lost their entire retirement savings, the college tuitions for their children and grandchildren, and for one 94-year-old investor the loss means choosing between medications and other daily needs.

The United States Attorney’s Office is seeking forfeiture of a ranch property in Terrebonne, Oregon that Baird purchased using proceeds of the fraud. The Court has entered a preliminary order of forfeiture with respect to this property. 

The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Jehiel Baer, and Special Assistant United States Attorney Jessica M. Ly.