The 5th Circuit Overturns Fraud Conviction
The 5th Circuit last week vacated the fraud convictions of Mike Baker and Mike Gluk. Mr. Baker was the CEO of ArthroCare Corp., a publicly traded company, and Mr. Gluk was the CFO. The government accused them of violating security laws by fraudulently overstating the gross receipts of ArthroCare. Both ArthroCare’s independent counsel and the SEC found in separate investigations that two of ArthoCare’s sales executives lied to Mr. Baker and Mr. Gluk. However, during the criminal prosecution, the district judge refused to allow the independent counsel’s findings or the SEC’s findings into evidence. Furthermore, the district judge did not allow the findings to be used to cross examine the two former sales executives.
The 5th Circuit vacated the convictions, and Mr. Gluk was released from prison last Friday. The government has not announced if it will seek a retrial.
Chuck Meadows and Aaron Borden of Meadows Collier represented Mr. Gluk at trial along with Jason S. Lewis and David W. Klaudt of Greenberg Traurig. The appeal was handled by Elliot H. Scherker, Brigid F. Cech Samole and Jay A. Yagoda of Greenberg Traurig.
The 5th Circuit decision can be read in its entirety at U.S. v. Gluk, 5th Cir., No. 14-51012, Jan. 25, 2016.
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