{"id":1464,"date":"2014-06-11T17:42:03","date_gmt":"2014-06-11T17:42:03","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/06\/exarthrocare_ceo_and_cfo_convi"},"modified":"2022-03-11T13:12:04","modified_gmt":"2022-03-11T19:12:04","slug":"exarthrocare-ceo-and-cfo-convi","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/exarthrocare-ceo-and-cfo-convi\/","title":{"rendered":"Ex-ArthroCare CEO and CFO Convicted in Texas Securities Fraud Case"},"content":{"rendered":"

\t\t\t\tA Texas jury has convicted to two ex-ArthroCare executives with operating a $400 million scam to bilk investors. Michael Baker, the former CEO, was found guilty of wire fraud, securities fraud<\/a>, conspiracy to commit both, and making false statements. Michael Gluck, the ex-CFO, was found guilty of securities fraud, wire fraud, and conspiracy to commit both also. ArthroCare manufactures medical devices. <\/p>\n

According to prosecutors, from 2005 until 2009 the two men and others inflated sales and revenue by tens of millions of dollars through transactions with several ArthroCare distributors. Some of the transactions occurred because the medical device maker had to satisfy sales forecasts and not to fulfill distributors’ product needs. As a result, ArthroCare sent million of dollars worth of devices to these distributors, reporting the deliveries as sales in yearly and quarterly filings. This let ArthroCare meet and sometimes even exceed predicted sales.<\/p>\n

Meantime, the distributors consented to the extra inventory in return for cash commission, extended terms of payment, and a refund option. Gluk and Baker even compelled the company to acquire DiscoCare, a distributor, to hide the nature of these sales. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

A Texas jury has convicted to two ex-ArthroCare executives with operating a $400 million scam to bilk investors. Michael Baker, the former CEO, was found guilty of wire fraud, securities fraud, conspiracy to commit both, and making false statements. Michael Gluck, the ex-CFO, was found guilty of securities fraud, wire fraud, and conspiracy to commit […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3750],"tags":[],"class_list":["post-1464","post","type-post","status-publish","format-standard","hentry","category-texas-securities-fraud"],"yoast_head":"\nEx-ArthroCare CEO and CFO Convicted in Texas Securities Fraud Case — Investor Lawyers Blog — June 11, 2014<\/title>\n<meta name=\"description\" content=\"A Texas jury has convicted to two ex-ArthroCare executives with operating a $400 million scam to bilk investors. 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