United States v. Michael Gluk

E. GRADY JOLLY, Circuit Judge: 1

Michael Baker and Michael Gluk appeal their convictions for securities fraud. Because we agree with their evidentiary challenges, we vacate their convictions and remand for a new trial. 2

I

Michael Baker and Michael Gluk were, respectively, the CEO and CFO of Arthro-Care, a medical device company. Under their tenure (and, allegedly, with their knowledge) ArthroCare practiced “channel stuffing” with a related entity, DiscoCare.

“Channel stuffing” is a fraudulent scheme companies sometimes attempt, in an effort to smooth out uneven earnings-typically to meet Wall…