Bankruptcy fraud leads to prison sentence for KC healthcare company’s owner
KANSAS CITY, Mo. (KCTV) - The owner of a Kansas City healthcare company has been sentenced to prison for bankruptcy fraud and ordered to repay tens of thousands of dollars for selling rented medical equipment.
The U.S. Attorney’s Office for the Western District of Missouri says that on Tuesday, April 29, William L. Said, 62, of Stillwell, Kansas, was sentenced to spend nearly 2 years - 21 months - in prison. He was previously charged and pleaded guilty to a single count of bankruptcy fraud.
Court documents indicated that Said was sentenced without parole and was ordered to pay $85,000 in restitution. He paid the sum at the time of his sentencing.
Law enforcement officials noted that Said itted he fraudulently transferred and concealed assets in a bankruptcy case connected to Restorative Brain Clinic, Inc., which he owned and was in charge of. The company filed a voluntary bankruptcy case in July 2021 before a debtor-in-possession was established.
Investigators said that the clinic’s operating funds were stored in the debtor-in-possession , to which Said had been the only authorized individual with access. In Sept. 2021, a motion was filed to convert the clinic’s bankruptcy to a Chapter 7 liquidation case based on gross mismanagement of the estate.
On Oct. 14, 2021, law enforcement officials indicated that the motion had been granted. It was also ordered that the U.S. Trustee would appoint a Chapter 7 trustee to find assets for unsecured creditors.
Minutes after the conversion hearing, court records revealed that Said was removed as the fiduciary of the bankruptcy estate, and the court ordered that he was to no longer be in control of the clinic’s assets. Said proceeded to initiate several wire transfers of money from the debtor-in-possession :
- $5,000 to Said’s personal bank
- $12,400 to a clinic shareholder
- $16,300 to a medical staffing company
- $5,760 to the clinic’s landlord.
Investigators noted that the was frozen before Said’s transaction to the landlord could go through. He also itted that he sold and leased medical equipment from the clinic.
Law enforcement officials revealed that the clinic leased equipment manufactured by AB Sciex, LLC in 2018. As the owner of Cox Scientific as well, in 2019, he agreed to sell the equipment to a company in California. He scratched out the equipment’s serial numbers and then used the altered serial numbers on the invoice.
Court records indicated that $85,000 was paid to Said for the equipment, which he did not own. The investigation was completed by the FBI and the U.S. Trustee for Region 13. No further information has been released.
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