United States v. Michael Baker

WIENER, Circuit Judge:

Defendant-Appellant Michael Baker was the Chief Executive Officer of ArthroCare, a publicly traded medical-device company. Baker, along with the company's other senior executives, engaged in a "channel-stuffing" scheme that involved sending excess products to a distributor that did not need those products. ArthroCare reported those shipments as legitimate sales, which inflated the company's revenue numbers in its financial reports. Baker hid this scheme from ArthroCare's board and auditors, and he made false statements to the SEC and to investors about the company's…