IRS raids Fairway home of weight-loss surgeon

 

A weight-loss surgeon whose patients said he'd left them in the lurch is facing serious trouble with the IRS.

One month after Dr. Stephen Malley vanished from his medical office, the IRS raided his Fairway home because of unpaid income taxes in the amount of almost $800,000.Some of his patients are wanting answers.

Billie Lovell paid $11,000 for weight-loss surgery at Malley's Mission office in August.

“It was for the surgery, the hospital bill and for a year's follow up,” Lovell explained.

But the day she was scheduled for follow up, her doctor's office closed with little warning and no explanation.

“I've actually got to go to another doctor and pay out of pocket for my first follow-up,” Lovell said.

Several days later, Malley posted a Facebook video explaining he had been evicted but all would soon be sorted out.

“Basically we're just looking for a new place to land and to get things going again,” he said in the video.

Friday, movers showed up at Malley's Fairway home along with federal agents. The IRS said they were attempting to satisfy a federal tax debt.

A search of county records shows that debt amounting to $789,709.72. That amount includes taxes owed from 2009-2012. That's an average of about $200,000 per year.

The total is more than the appraised value of the house on Aberdeen. Property tax records show its 2014 appraised value at $646,100.

As for the eviction, KCTV5 searched Johnson County court records to find a judgment against him and owed to his landlord in the amount of $88,270. The judgment, for back rent, late fees and legal fees, was issued last month.

Malley told patients in his video that they won't be out any money.

“We'll work all that out,” he said, addressing patients who had procedures or follow-ups not yet done. “I assure you that you are not being and will not be taken advantage of.”

Lovell has to wonder.

“It makes you wonder what he was doing with his money because I know the office was always busy," she said.

KCTV5 tried to reach Malley for comment but no one answered at his home address.Copyright 2014 KCTV (Meredith Corp.) All rights reserved

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