On August 29, Michael Baker, the former CEO of ArthroCare Corporation, and Michael Gluk, ArthroCare’s former CFO, were sentenced in the Western District of Texas to 20 years and 10 years in prison, respectively, following their June 2014 convictions for wire fraud and securities fraud and Baker’s conviction for making false statements to the SEC during its investigation of the conduct.  Baker and Gluk were also ordered to forfeit approximately $22 million in profit from the fraud scheme.  According to the government, at sentencing the court found that Baker and Gluk each lied under oath during their trial testimony, and that investors lost approximately $756 million as a result of the defendants’ scheme to artificially inflate the share price of ArthroCare stock through end-of-quarter sham transactions involving ArthroCare’s distributors.  In addition, two former ArthroCare vice presidents were sentenced to 80 months and 60 months in prison following guilty pleas related to the securities fraud scheme.  United States v. Baker, 13-cr-00346 (W.D. Tex.); United States v. Raffle, 12 Cr. 314 (W.D. Tex.) DOJ Press Release.