Two former ArthroCare (ARTC) senior executives were arrested this morning for their alleged roles in a fraud scheme. A 16-count indictment was brought against John Raffle, former SVP of strategic business, and David Applegate, former SVP in charge of ARTC’s spine division. The two apparently attempted to defraud shareholders and investors by falsely inflating the company's earnings by tens of millions of dollars to manipulate the company's stock price. The DoJ says the losses due to the scheme are over $400M.
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