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Fri Aug 29, 2014, 07:02 PM

Ex-ArthroCare executives get prison time in fraud case

Four former executives of ArthroCare Corp. were sentenced to federal prison Friday for their roles in orchestrating a $756 million scheme to defraud investors in the formerly Austin-based company, which makes surgical products.

A federal Western District of Texas jury in June found former ArthroCare 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 chief financial officer, was found guilty of conspiracy to commit wire and securities fraud, wire fraud and securities fraud.

U.S. District Judge Sam Sparks on Friday sentenced Baker to 20 years in prison, fined him $1 million and ordered him to forfeit $21.6 million in personal assets. Gluk was sentenced to 10 years in prison, was fined $50,000 and ordered to forfeit $581,000 in personal assets.

Co-conspirators John Raffle and David Applegate, both former senior vice presidents of ArthroCare, pleaded guilty to multiple felonies in 2013 in connection with their participation in the scheme.

Read more: http://www.statesman.com/news/business/ex-arthrocare-executives-get-prison-time-in-fraud-/nhCLH/

[font color=green]After a slow week the Friday evening news dump has some interesting and important stories.[/font]

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