Former ArthroCare (NSDQ:ARTC) executive John Raffle asked a Texas court to unseal the names of as-yet unidentified co-conspirators in the federal government’s case against him, arguing that he can’t properly prepare for a trial without that information.
"Mr. Raffle is left just weeks away from trial unable to adequately prepare his defense," according to court documents filed by Raffle’s lawyers. "Without further specificity about the identity of the alleged co-conspirators, Mr. Raffle will be left to guess about the nature of the charges against him."
Federal attorneys had asked the court to deny Raffle’s previous requests, saying that he’s not entitled to the so-called "bill of particulars." Raffle’s lawyers argued that such information has been routinely provided in other cases, citing the government’s voluntary decision this month to provide names in a the high-profile lawsuit against former SAC Capital Advisors portfolio manager Mathew Martoma.
Raffle and another ex-ArthroCare exec, David Applegate, were arrested last summer and charged by the U.S. Justice Dept. with wire fraud and making false statements in connection with the alleged scheme to artificially inflate ArthroCare’s share price by rigging its sales figures, according to court documents.
Earlier this month Applegate pleaded guilty to federal charges that he helped run a scheme that eventually defrauded investors in the medical device company of some $400 million. He pleaded guilty to 1 count of conspiracy to commit securities, mail & wire fraud and another count of making false statements, for regulatory filings made with the SEC containing faked quarterly and annual sales figures.