Brocade ceo backdating Chat sverige
The court did not go nearly as far for Reye's co-defendant, Stephanie Jensen, Brocade's Vice-President of the Human Resources Department.She was found to have worked to conceal the backdating and was sentenced to four months.According to court testimony, Brocade’s failure to expense more than 0 million from backdated options resulted in Brocade reporting profits in 20, when it should have reported large losses.Brocade was just one of many tech companies which came under SEC investigation for distorting their earnings starting in the late 1990s by not disclosing this kind of executive compensation.
Reyes' defense was that he signed off on the backdated options without intent to deceive, and he thought the company's finance group had properly disclosed the backdating in the annual reports.
The feds say no way, since Karatz lied to both KB lawyers and independent auditors about the concealment.
Instead, "the record readily establishes that [Karatz] used Hirst to perpetrate a fraud," according to papers filed by the prosecution.
Last March Reyes was already convicted of frauds and false statements but the jury acquitted him of a conspiracy charge.
Stephanie Jensen, former Brocade's executive in charge of human resources, was also involved in this operation of illegal backdating and sentenced in 2008 during a separate trial. In another meeting, we were surprised to see him losing his temper after a [tough] question.