AUSTIN, TX-US District Court-Western District of Texas
Former ArthroCare CEO Michael Baker was sentenced to to serve 20 years in prison by US District Judge Sam Sparks. Former CFO Michael Gluk received a 10 year sentence. Both had been convicted in June 2014 of wire fraud, securities fraud and conspiracy.
Two other former senior VPs, John Raffle and David Applegate were also sentenced.
According to Principal Deputy Assistant Attorney General Marshall L. Miller, “The CEO , CFO and two vice presidents of ArthroCare sentenced today ran a successful business, but they wanted more. Their greed led to fraud, and their fraud caused investors to lose hundreds of millions of dollars.”
The scheme involved inflating sales and revenue figures by manipulating sales figures. After announcing that earnings would be restated in July 2008, the price of ArthroCare dropped from $40 to under $24 per share.
Link to Department of Justice press release.
Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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