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TexasTowelie

(111,285 posts)
Mon Jun 2, 2014, 11:38 PM Jun 2014

Ex-ArthroCare execs guilty in fraud case for orchestrating $400M scheme

ArthroCare Corp.’s former chief executive officer and former chief financial officer were convicted Monday with orchestrating a $400 million scheme to defraud investors in the formerly Austin-based company, which makes surgical products.

After a four-week trial in Austin, a federal Western District of Texas jury found former CEO Michael Baker guilty of conspiracy to commit wire and securities fraud, wire fraud, securities fraud and false statements. Michael Gluk, the company’s former CFO, was found guilty of conspiracy to commit wire and securities fraud, wire fraud and securities fraud.

A sentencing date has not been set. Baker and Gluk could face a maximum prison sentence of 25 years for the conspiracy charge, 20 years for each count of wire fraud, and 25 years for each securities fraud count, according to the Justice Department. Baker also could five years for each count of making false statements.

ArthroCare employs about 1,800 people, including about 280 in the Austin area. The company, which moved its headquarters from Sunnyvale, Calif., to Austin in 2004, was recently acquired for $1.7 billion by British medical technology company Smith & Nephew.

More at http://www.statesman.com/news/business/arthrocare-former-executives-found-guilty-of-fraud/ngCNM/ .

Cross-posted in General Discussion.

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