Need For Greater Traceability In Manufacturing Of Medical Devices Emphasized In Texas Fraud Conviction

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Need For Greater Traceability In Manufacturing Of Medical Devices Emphasized In Texas Fraud Conviction

Recently, the former CFO and CEO of a medical device manufacturing firm were found guilty of conspiracy and wire/securities fraud in Texas. Michael Baker, former CEO of ArthroCare Corporation and Michael Gluk, former CFO at the same firm, were convicted in Austin by a federal jury in connection with a fraud scheme that cost shareholders in the company more than $400 million. The two men were investigated by various authorities including the U.S. Securities and Exchange Commission; both men were charged on April 1 of this year. Essentially, it was determined that the two men "cooked the books" to enhance the company's stock, inflating revenue and sales via transactions at the end of quarters. Others were involved in the scheme as well, according to Biz Journals. In 2013, former vice presidents of ArthroCare David Applegate and John Raffle pleaded guilty to numerous felony offenses. This scenario illustrates the need for greater traceability in manufacturing, overall. Putting effective traceability measures in place could help prevent this type of fraud, as these systems help manufacturers identify issues which may be completely innocent mistakes, or problems with sales numbers/production which could indicate fraudulent activity. At Markem-Imaje, we realize that situations that are highly publicized such as the one above can have a very negative impact on the entire medical device manufacturing industry. Enhancing the most critical areas of your company's operation such as reliable product tracking can not only help avoid disastrous situations like this, but help you grow. Reliable traceability also works to minimize the damaging effects of product recalls, as manufacturers can work quickly to alleviate the situation. Through proper track and trace solutions, manufacturers have a better handle for the "real" numbers, those that affect their profitability, forecasting, and more. Markem-Imaje provides the most reliable industrial traceability solutions to manufacturers in a wide range of industries around the globe. Contact us today for all of your industrial coding and traceability needs.

January 10, 2014
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