Former ArthroCare CEO, CFO Sentenced To Prison In Fraud Case

(RTTNews) - Medical device company ArthroCare Corp.'s (ARTC, ARTC.PK) ex- chief executive officer Michael Baker and the company's former finance chief Michael Gluk were sentenced to imprisonment on Friday, after they were found guilty of plotting a $750 million securities fraud scheme. The court sentenced Baker to 20 years and Gluk to 10 years in prison. In addition, the court ordered them to forfeit $22.2 million, the amount of their profits from the scheme.

The court said investors lost nearly $756 million as a result of the defendants' scheme to artificially inflate the share price of ArthroCare stock through sham transactions.

Ex-senior vice presidents John Raffle and David Applegate were also sentenced to prison terms for being co-conspirators in the scheme.

Earlier in June 2014, Baker and Gluk were convicted by a jury of wire fraud, securities fraud, and conspiracy to commit wire and securities fraud.

In a statement, Principal Deputy Attorney General Marshall Miller termed the fraud as "an epic tale of greed."