and the U.S. Department of Justice announced that they were investigat-
ing the company. I already had counsel by the time I left, and I knew that
I might be targeted by both
the SEC and the DOJ.
Nevertheless, my goal was to
live life one day at a time and
to enjoy my job and my life
with my husband and my
family and friends.
It wasn't long before the
SEC asked me to come in
and talk to them. After con-
ferring with my attorney, I
declined their offer as they
wouldn't assure us that my
testimony wouldn't be used against me in a criminal proceeding. The
SEC had interviewed several other people at ArthroCare and based on
their testimony and their investigation filed a complaint against me that
I had acted improperly and benefitted from more than $800,000 in ill-
gotten gains. We strongly disagreed with the complaint and negotiated a
settlement where I had to pay $55,000 in fines over a 3-year period with-
out admitting to their charges. At the time, Ken and I actually had a neg-
ative net worth.
Handcuffs and tracking devices
But my troubles were of course far from over. In early 2010 I found
out I was officially a target of a criminal investigation. My attorney
and I were summoned to Fort Lauderdale, where FBI agents and a
DOJ official "interviewed" me. I say interviewed because I don't recall
saying a word — they did all the talking. They basically laid out their
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My husband was quite surprised
by the raid. He answered the
doorbell in his underwear.
The agents broke
the door and then
interrogated,
handcuffed and
threw my husband
to the ground with
a shotgun pointed
at his head.
