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ArthroCare's ex-execs accused of fraud

AUSTIN, Texas (AP) -- The former top two executives of medical device company ArthroCare Corp. have been accused of defrauding shareholders and investors out of $400 million.

A federal indictment unsealed Wednesday accuses former ArthroCare chief executive Michael Baker and former ArthroCare finance chief Michael Gluk of conspiracy, 11 counts of wire fraud and two of securities fraud. Baker also is charged with three counts of making false statements.

The indictment also seeks forfeiture of assets held by Baker and Gluk.

The indictment accuses the pair of inflating ArthroCare's earnings by tens of millions of dollars to falsely encourage investment from at least December 2005 through December 2008.

The pair turned themselves in to authorities in Austin on Wednesday.