The former CEO of S-Ray, a dental device company, pleaded guilty to wire fraud and participating in a fraudulent investor scheme.
Stephen Baird, the company's former CEO, admitted to making false statements about S-Ray's product development, including claims that the company had earned FDA-approval to market a dental device, according to a May 8 news release from the Justice Department.
The scheme began in 2012 and defrauded approximately 200 investors of $10.75 million. Mr. Baird used more than $6 million of the funds on his and his family's personal expenses.
Mr. Baird agreed to pay restitution to the investors and forfeit property. The government agreed to recommend no more than seven years in prison, the release said.