Ex-CEO convicted of $750 million securities fraud in retrial
AUSTIN, Texas (AP) — The former top executive of an Austin medical device company has been convicted a second time of orchestrating a $750 million securities fraud.
Former ArthroCare Corp. CEO Michael Baker had been sentenced to 20 years in prison after his first conviction in August 2014. Last October, however, the 5th U.S. Circuit Court of Appeals in New Orleans ordered a new trial for Baker.
After a two-week trial, federal jury in Austin found Baker guilty Friday of a conspiracy count, seven wire fraud counts and two counts each of securities fraud and making false statements.
No sentencing date has been set, but U.S. District Judge Sam Sparks ordered Baker to remain in custody until then.
Prosecutors say sales and revenue numbers were inflated to meet or exceed earnings forecasts.