FORMER ARTHROCARE CEO CONVICTED AGAIN (Orthopedics This Week)
Former ArthroCare Corporation CEO Michael Baker has been convicted for a second time by a federal jury for his role in orchestrating a fraud scheme that resulted in shareholder losses of over $750 million.
Baker and Michael Gluk, the company's former CFO, were originally convicted in June 2014 for running a scheme to generate false revenue numbers by dumping inventory, first through a distributor called DiscoCare and then sending free shipments to end-users. ArthroCare was DiscoCare’s only client until it acquired DiscoCare in December 2007.
Baker received a 20-year sentence, while Gluk drew a 10-year sentence. But in January 2016, a U.S. Court of Appeals overturned the convictions and ordered new trials.
In early August, Gluk pled guilty to a single count of conspiracy to commit wire fraud and securities fraud. Baker took his chances with another jury and went to trial in late July. The trial ended with the guilty plea on August 18.
According to reported court documents, the jury convicted Baker on 12 of the 15 counts against him. He was found guilty of one count of wire and securities fraud; seven counts of wir...
