Former ArthroCare Execs Face Fraud Charges

The former CEO and chief financial officer of ArthroCare Corp. have turned themselves into authorities after being accused of defrauding shareholders and investors out of $400 million.

A federal indictment unsealed on July 17 accused Michael Baker and Michael Gluk of conspiracy, 11 counts of wire fraud and two of securities fraud. Baker also is charged with three counts of making false statements. The indictment also requires Baker and Gluk to forfeit any company assets held.

Baker and Gluk are alleged to have inflated ArthroCare’s earnings by tens of millions of dollars to falsely encourage investment from at least December 2005 through December 2008.

ArthroCare makes surgical devices, instruments, and implants for the sports medicine, ENT and spine segments. The company is headquartered in Austin, Texas, which is where Baker and Gluk turned themselves in.