Brocade communications systems backdating


03-Aug-2020 07:39

While backdating is not itself illegal, companies must account for those options as a noncash expense against reported earnings.

During the trial that began last month, federal prosecutors Adam Reeves and David Anderson spent three weeks presenting evidence and testimony to bolster their charges that Reyes knowingly signed false documents and conspired to disguise the history of some of the company’s stock-option grants.

The move could unleash a host of other actions against senior executives at top US network and IT suppliers.

Stock option backdating involves companies putting back the date for the award of stock options to employees and senior executives, usually to a time when the share price was lower, making the award potentially more lucrative.

At the height of the Internet bubble 10 years ago, Forbes estimated his wealth at

While backdating is not itself illegal, companies must account for those options as a noncash expense against reported earnings.During the trial that began last month, federal prosecutors Adam Reeves and David Anderson spent three weeks presenting evidence and testimony to bolster their charges that Reyes knowingly signed false documents and conspired to disguise the history of some of the company’s stock-option grants.The move could unleash a host of other actions against senior executives at top US network and IT suppliers.Stock option backdating involves companies putting back the date for the award of stock options to employees and senior executives, usually to a time when the share price was lower, making the award potentially more lucrative.At the height of the Internet bubble 10 years ago, Forbes estimated his wealth at $1 billion, although it is believed to be less today. Charges and verdicts Here is a breakdown of the charges and verdicts in the case against Gregory Reyes: Not guilty on one count of conspiracy to commit securities fraud. Guilty on three counts of filing false documents with the SEC. Guilty on four counts of making false statements to Brocade”s accountant. reyes timeline January 2005 Gregory Reyes steps down as chairman and CEO of Brocade Communications 20, 2006Reyes charged with criminal and civil securities fraud. 7, 2007Reyes found guilty in the nation”s first criminal trial related to stock-option backdating. 18, 2009Appellate court overturns Reyes” conviction.

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While backdating is not itself illegal, companies must account for those options as a noncash expense against reported earnings.

During the trial that began last month, federal prosecutors Adam Reeves and David Anderson spent three weeks presenting evidence and testimony to bolster their charges that Reyes knowingly signed false documents and conspired to disguise the history of some of the company’s stock-option grants.

The move could unleash a host of other actions against senior executives at top US network and IT suppliers.

Stock option backdating involves companies putting back the date for the award of stock options to employees and senior executives, usually to a time when the share price was lower, making the award potentially more lucrative.

At the height of the Internet bubble 10 years ago, Forbes estimated his wealth at $1 billion, although it is believed to be less today. Charges and verdicts Here is a breakdown of the charges and verdicts in the case against Gregory Reyes: Not guilty on one count of conspiracy to commit securities fraud. Guilty on three counts of filing false documents with the SEC. Guilty on four counts of making false statements to Brocade”s accountant.

reyes timeline January 2005 Gregory Reyes steps down as chairman and CEO of Brocade Communications 20, 2006Reyes charged with criminal and civil securities fraud. 7, 2007Reyes found guilty in the nation”s first criminal trial related to stock-option backdating. 18, 2009Appellate court overturns Reyes” conviction.

For the second time, a federal jury has found former Brocade Communications CEO Gregory Reyes guilty of securities fraud and related charges in a closely watched case that grew out of a wide-ranging investigation into the backdating of stock options in Silicon Valley.

billion, although it is believed to be less today. Charges and verdicts Here is a breakdown of the charges and verdicts in the case against Gregory Reyes: Not guilty on one count of conspiracy to commit securities fraud. Guilty on three counts of filing false documents with the SEC. Guilty on four counts of making false statements to Brocade”s accountant.

reyes timeline January 2005 Gregory Reyes steps down as chairman and CEO of Brocade Communications 20, 2006Reyes charged with criminal and civil securities fraud. 7, 2007Reyes found guilty in the nation”s first criminal trial related to stock-option backdating. 18, 2009Appellate court overturns Reyes” conviction.

For the second time, a federal jury has found former Brocade Communications CEO Gregory Reyes guilty of securities fraud and related charges in a closely watched case that grew out of a wide-ranging investigation into the backdating of stock options in Silicon Valley.

brocade communications systems backdating-38

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“This was a difficult case to win, and it bodes well for the government,” said Peter Henning, a former prosecutor and law professor at Detroit’s Wayne State University, who has closely followed backdating cases around the country. The same judge previously sentenced Reyes to 21 months in prison and ordered him to pay a million fine, after the hard-charging former executive — and former part-owner of the San Jose Sharks — was convicted on all 10 counts in 2007, including the conspiracy charge.A former Brocade staffer testified that when she brought backdated documents to Reyes for his signature on one occasion, he told her: “It’s not illegal if you don’t get caught.” Other witnesses said Brocade’s former human resources chief, Stephanie Jensen, warned them not to discuss backdating procedures in e-mails or written documents, and directed them in other ways to avoid calling attention to the effort, because “Greg doesn’t want it to be too obvious.” Jensen was convicted by a different jury in a separate trial on charges that she conspired with Reyes and falsified documents herself; she was sentenced earlier this year to pay

“This was a difficult case to win, and it bodes well for the government,” said Peter Henning, a former prosecutor and law professor at Detroit’s Wayne State University, who has closely followed backdating cases around the country. The same judge previously sentenced Reyes to 21 months in prison and ordered him to pay a $15 million fine, after the hard-charging former executive — and former part-owner of the San Jose Sharks — was convicted on all 10 counts in 2007, including the conspiracy charge.

A former Brocade staffer testified that when she brought backdated documents to Reyes for his signature on one occasion, he told her: “It’s not illegal if you don’t get caught.” Other witnesses said Brocade’s former human resources chief, Stephanie Jensen, warned them not to discuss backdating procedures in e-mails or written documents, and directed them in other ways to avoid calling attention to the effort, because “Greg doesn’t want it to be too obvious.” Jensen was convicted by a different jury in a separate trial on charges that she conspired with Reyes and falsified documents herself; she was sentenced earlier this year to pay $1.25 million and serve two months in prison.

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“This was a difficult case to win, and it bodes well for the government,” said Peter Henning, a former prosecutor and law professor at Detroit’s Wayne State University, who has closely followed backdating cases around the country. The same judge previously sentenced Reyes to 21 months in prison and ordered him to pay a $15 million fine, after the hard-charging former executive — and former part-owner of the San Jose Sharks — was convicted on all 10 counts in 2007, including the conspiracy charge.A former Brocade staffer testified that when she brought backdated documents to Reyes for his signature on one occasion, he told her: “It’s not illegal if you don’t get caught.” Other witnesses said Brocade’s former human resources chief, Stephanie Jensen, warned them not to discuss backdating procedures in e-mails or written documents, and directed them in other ways to avoid calling attention to the effort, because “Greg doesn’t want it to be too obvious.” Jensen was convicted by a different jury in a separate trial on charges that she conspired with Reyes and falsified documents herself; she was sentenced earlier this year to pay $1.25 million and serve two months in prison.

.25 million and serve two months in prison.