Feeds

Brocade and Mercury rain cash on SEC to settle charges

Don't mention the stock

Internet Security Threat Report 2014

Brocade and Mercury Interactive have coughed up $35m between them to settle charges they deliberately flouted SEC rules by falsifying dates of stock option grants.

Mercury is stumping up $28m to settle civil fraud charges brought today by the US Securities and Exchange Commission against it and four former executives for the "fraudulant and deceptive" award of shares through backdating.

Using the gentlemen's club language that typically accompanies regulatory investigations of Wall Street excess, Mercury is settling "without admitting or denying" guilt.

As for former chief executive Amon Landen, former chief financial officers Sharlene Abrams and Douglas Smith, and former general counsel Susan Skaer, the SEC alleges these officers aided and abetted violations of antifraud laws between 1997 and 2005. The commission's investigation is still in progress.

Brocade will pay $7m to settle SEC charges of falsifying reports of income through backdating and misreporting of compensation expenses between 1999 and 2004. Again, Brocade neither admitted nor denied any wrongdoing.

The commission has charged former chief executive George Reyes, former vice president of human resources Stephanie Jensen, and former chief executive Antonio Canova with fraud and other securities law violations.

The Brocade trio were the first Silicon Valley executives to be hauled up and formally charged by the FBI and SEC with separate civil and criminal charges last July. The executives each face a maximum penalty of 20 years jail and $5m fines.

At the time, feds warned Silicon Valley more charges would follow unless there was a good reason for any misdating of stock - a widespread practice intended to lure talent during the dotcom boom. Since then, IT companies Valley-wide have been keen to show good faith and have combed through old accounts to search for and re-adjust backdated stock allocations. ®

Beginner's guide to SSL certificates

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.