AUSTIN, Texas (AP) — A federal jury has convicted the former top two executives of an Austin medical device company for taking part in a scheme that defrauded shareholders and investors out of more than $400 million.
Former ArthroCare Corp. chief executive Michael Baker and former ArthroCare finance chief Michael Gluk were convicted in an Austin federal courtroom on Monday of conspiracy as well as wire and securities fraud. Baker was also convicted of making false statements.
Prosecutors say both men and others orchestrated a scheme in which they artificially inflated sales and revenue in order for the company to meet or exceed internal and external earnings forecasts.
A sentencing date for Baker and Gluk has not yet been scheduled. Each man faces prison sentences of up to 25 years.