AUSTIN, Texas (AP) — The former top two executives of an Austin medical device company have received long prison sentences for participating in a scheme that defrauded shareholders and investors out of more than $750 million.
Former ArthroCare Corp. chief executive Michael Baker was sentenced Friday in federal court in Austin to 20 years in prison, while his former finance chief Michael Gluk drew a 10-year prison term. Both could have gotten 25-year terms.
Both also forfeit more than $25 million in profits.
Both were convicted in June of conspiracy and wire and securities fraud. Baker also was 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.