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Medical device CEO convicted of $750 million securities fraud

Joe Mont | August 22, 2017

On Aug. 18, a federal jury convicted the former chief executive officer of ArthroCare Corp., a publicly traded medical device company based in Texas, for his role in orchestrating a fraud scheme that resulted in shareholder losses of over $750 million.

After a two-week trial, a jury in the Western District of Texas found the former CEO, Michael Baker, 58, of Austin, Texas, guilty of one count of conspiracy to commit wire fraud and securities fraud, seven counts of wire fraud, two counts of securities fraud and two counts of making false statements. Baker was charged in a superseding indictment unsealed on July 17, 2013.

Evidence at trial demonstrated that Baker, along with his co-conspirators, “masterminded and executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions” involving...

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