Ex-ArthroCare CEO Baker loses appeal of 20-year sentence (Mass Device)
A federal appeals court this week upheld the 20-year sentence imposed on former ArthroCare CEO Michael Baker after his second conviction in a $750 million fraud case.
Baker and ex-ArthroCare CFO Michael Gluk were first convicted in June 2014 on charges that they ran a scheme to inflate revenues by dumping inventory, first with a distributor called DiscoCare and eventually via free shipments to end-users. ArthroCare was DiscoCare’s only client until it acquired the distributor in December 2007.
After Baker was sentenced to 20 years in prison and Gluk drew a 10-year term, the U.S. Court of Appeals for the 5th Circuit overturned the convictions and ordered new trials. Gluk later pleaded guilty to a single count of conspiracy to commit wire fraud and securities fraud and testified against Baker at his former boss’s second trial.
That jury convicted Baker on 12 of 15 counts; he subsequently lost a bid to toss the wire fraud charges and in November 2017 was again sentenced to 20 years plus fi...
