Feeds

SEC procrastinating on Brocade fine?

Bring me the head of Steve Jobs

Internet Security Threat Report 2014

The SEC may be struggling with the vast scope of its stock option investigation if its delay in actually collecting a fine from Brocade is anything to go by.

Storage switch maker Brocade, the first company implicated in the scandal is yet to have its settlement approved, many months after a deal was struck.

Brocade agreed the $7m fine with local SEC officials in California before the summer and set the dollars aside. It's a trifle against cash coffers swelled by four consecutive record quarters for Brocade, but there's frustration at the SEC's apparent heel-dragging in Washington; the penalty is yet to be approved. "Perhaps they're on a different time frame to us," said worldwide marketing VP Tom Buiocchi.

There's wider resentment in Silicon Valley over a perceived double standard the affair has spotlighted. As a "niche" executive, ex-Brocade chief Greg Reyes was a soft target, it's mumbled. Some are asking whether Apple's Steve Jobs should be in the prosecutor's firing line too, except for the fact he is Steve Jobs, America's hippest turtlenecked-tech-exec, with products in millions of homes.

The SEC's interest in Apple is ongoing. Jobs issued a mea culpa on backdating on October 4 , saying: "I apologize to Apple's shareholders and employees for these problems, which happened on my watch." The comment was made the same day an internal investigation cleared him of personally benefiting from backdating. He was aware favourable grants were dished out in some cases, investigators found, though was "unaware of the accounting implications".

The same story from Greg Reyes' defence fell on deaf ears at an August dismissal hearing. The ex-CEO had not been plugged into the ramifications of backdating stock options on accounts submissions to the SEC, it was claimed. Attorney Richard Marmaro said: "Nowhere in this affidavit does it allege the defendants intended that consequence."

NetApp CEO Dan Warmenhoven has been the most vocal against the investigations after an internal review confirmed the NAS specialist was bullet-proof on stock options. In August he told Business Week: "I think the government is looking to find some egregious examples [of wrongdoing] and to publicly hang people for them. That's fine. But where does it stop?"®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.