The former top two executives of an Austin medical-device company have been indicted on wire and securities fraud charges, accused of defrauding shareholders and investors out of $400 million, the Associated Press reported this week.
A federal indictment accuses former ArthroCare chief executive Michael Baker and former ArthroCare finance chief Michael Gluk of conspiracy, 11 counts of wire fraud, and two of securities fraud. Baker was also charged with three counts of making false statements. The indictment accuses the pair of inflating ArthroCare’s earnings by tens of millions of dollars to falsely encourage investment from December 2005 through December 2008.
The pair turned themselves in to authorities in Austin on Wednesday.