CMED ceased operating in early 2012, leaving investors unpaid on $426 million worth of bond debt as a result of a suspected fraud by CMED's former Chairman & CEO. The company is in default due to failure to pay interest to its bondholders.[4] CMED filed for bankruptcy in 2012, and its liquidator is probing an alleged $355 million insider fraud, and alleges that "CMED's creditors and equity holders may have been the victims of a massive multi-year fraud."