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Former ArthroCare CFO Pleads Guilty to Fraud

Executive Summary

The former chief financial officer of device manufacturer ArthroCare Corp. pleaded guilty to fraud in a Texas federal court this week. Michael Gluk reportedly took part in a scheme to manipulate stock prices by falsely inflating ArthroCare’s sales.

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Former ArthroCare CFO Gets 50 Months In Prison

Michael Gluk, who participated in a scheme to falsely inflate ArthroCare’s earnings by parking unsold merchandise with distributors, pleaded guilty to one count of conspiracy to commit wire and securities fraud after his initial conviction was overturned.

Retrial Ends In Fraud Conviction For Ex-ArthroCare CEO

Michael Baker was convicted on 12 counts of fraud, conspiracy and making false statements at the end of the two-week trial. He conspired to artificially inflate ArthroCare’s sales by recording shipments to distributors as sales in the company’s quarterly filings, a jury found.

Ex-ArthroCare Chiefs Convicted Of Orchestrating Fraud

The former top leaders of ArthroCare have been convicted for working in cahoots with distributors to overstate ArthroCare’s earnings. Both face significant prison time for their roles in the scam, according to the Department of Justice.

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