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In the Courts

Fraud Convictions Vacated for District Judge's Evidentiary Errors

On Jan. 25, the U.S. Court of Appeals for the Fifth Circuit vacated the convictions of Michael Baker and Michael Gluk, the former CEO and CFO of ArthroCare, respectively, and remanded for a new trial for their role in a $750 million securities fraud. United States v. Gluk, 2016 WL 304041 (5th Cir. 2016). The circuit court ruled that the district judge had wrongly excluded from evidence investigative reports prepared by a law firm and the SEC, while improperly allowing prosecutors to dwell on “salacious details” of an unrelated fraud at the company. Id. at 2.

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