AUSTIN (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.
“I personally find it appalling that while these individuals were making millions of dollars in this scheme, thousands of investors lost their life savings, they lost money that they were saving for college funds for their children and they lost their pension funds,” said Christopher Combs, an FBI special agent in charge of the investigation.
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.
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