Brocade Ex-CEO Gets 21 Months, $15 Million Fine for Backdating Options
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A federal judge sentences Gregory Reyes, former chief executive of Brocade Communications Systems, to 21 months in prison and fines him $15 million. It's the harshest penalty yet in a tempest that has rattled corporate America.
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Former financier Martin Frankel was sentenced to 16 years and eight months in prison Friday for masterminding a scheme to loot insurance companies of more than $200
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A former chief executive of a financial printing firm was sentenced on Friday to 15 months in prison for possessing child porn and erasing thousands of seedy computer files when he learned he was under investigation.
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Former investment banker Frank Quattrone was sentenced on Wednesday to 18 months in prison, two months more than the harshest recommended penalty, for obstructing probes into suspected kickbacks involving some of the hottest stock offerings of the 1990s.
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Answers, please! The Federal Trade Commission has asked Brocade to give it more information over its proposed acquisition of enterprise storage rival McData.â¦
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A South Korean court found the private equity fund and one of its executives guilty of manipulating stock prices. The executive, Paul Yoo, was sentenced to five years.
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William Lerach, a former partner at a prestigious New York law firm, was sentenced Monday to two years in federal prison for his role in a lucrative kickback scheme involving class-action lawsuits against some of the nation's biggest corporations. Mr. Lerach, 61, was also sentenced to two years probation, fined $250,000 and ordered to complete 1,000 [...].
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The former chief financial officer of SafeNet, a maker of computer network security products, was sentenced to six months in prison and fined $1 million.
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Brocade Communications Systems has agreed to pay a $7 million penalty to settle charges of stock-option backdating fraud.
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The practice of manipulating stock options grants to make them more favorable has come back to haunt yet another round of high-tech executives. A former Monster Worldwide Inc. executive is expected to agree to a plea deal in New York Thursday, just a day after the founder of Take-Two Interactive Software Inc. pleaded guilty to a state felony related to backdating.
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Bank of America Corp. said a departing executive is eligible to collect about $20.7 million in severance and other payments from the company.
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Former Brocade Communications Systems CEO Gregory Reyes has been sentenced to 21 months in prison and a $15 million fine for fraud related to backdating of the storage networking company&#39;s stock options.Reyes was convicted last August&#160;in the most prominent of many criminal and civil cases in the past two years related to backdating by high-tech companies. Apple, McAfee, Rambus, and scores of other vendors have faced either internal or external probes. Reyes&#39; conviction was the first by the U.S. Department of Justice in a backdating case. Reyes was found guilty on 10 charges including securities fraud, conspiracy and falsifying financial records. He could have faced as much as 20 years in prison.The sentencing order on Wednesday from Judge Charles Breyer of the U.S. District Court for the Northern District of California has been stayed pending an expected appeal, which has not yet been filed, according to the court.Backdating, which involves changing the date that stock options grants were made to certain employees so they can later get a bigger profit, is not illegal but has to be accounted for properly. Many high-tech companies used the practice during the Internet boom early in this decade to attract prized employees.In the wake of Brocade&#39;s backdating problems, the company restated its results from 1999 to 2004. The scandal also led to charges against Stephanie Jensen, former vice president of human resources, and Michael Byrd, the company&#39;s former CFO and COO.
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Former ImClone Systems Inc. Chief  Executive Sam Waksal has agreed to pay a $3 million fine to  settle charges in the insider trading that put his friend,  style entrepreneur Martha Stewart, in prison last year, U.S.  regulators said on Wednesday
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(InfoWorld) - Monster Worldwide's former general counsel pleaded guilty in a Manhattan courtroom Thursday, another executive caught up in the stock options backdating scandal. Myron Olesnyckyj faced charges of securities fraud and conspiracy in connection with the backdating of millions of dollars' worth of employee stock option grants at the online recruitment services company. Olesnyckyj appeared before U.S. District Judge Laura Taylor Swain. According to a statement from the U.S. Attorney's office in New York, Olesnyckyj "conspired with other former senior executives at Monster to systematically backdate stock option grants to Monster employees in an effort to fraudulently suppress Monster's compensation expenses and falsely inflate its earnings and share price. As a result, Monster's public filings with the Securities and Exchange Commission between 1997 and 2005 fraudulently understated the company's compensation expenses and inflated its earnings by over 300 million dollars." The names of Olesnyckyj's alleged co-conspirators were not immediately disclosed.
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Individual penalties for the four Infineon executives who pled guilty in a price-fixing scheme follow a record $160 million fine that Infineon agreed to pay in mid-September stemming from the same investigation.
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Federal prosecutors are strongly  considering criminal charges against former executives of  Broadcom Corp., Apple Inc., and KLA-Tencor Corp., related to  the backdating of stock options, the Wall Street Journal  reported on Friday, citing people familiar with the situation.
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A former executive of biotechnology firm MedImmune Inc. faces 15 to 21 months in prison after pleading guilty Friday to securities fraud and perjury in US District Court in Washington.