Feeds

Second ex-Brocade exec goes on trial over options accounting

Backdating 2: Electric Boogaloo

3 Big data security analytics techniques

The trial of the second former Brocade executive charged with stock option backdating opened today in San Francisco with prosecutors painting Stephanie Jensen as a key enforcer of the data storage equipment maker's accounting irregularities.

Jensen, Brocade's former vice president of human resources, faces up to 20 years in prison on felony charges of conspiracy and falsifying corporate records.

"She deliberately falsified Brocade's options grant records, and carefully tried to cover up her scheme so that the auditors, the company's watchdogs, would never know what happened," said Assistant US Attorney Adam Reeves, according to the AP.

According to testimony from former employee Stephen Beyer, Jensen was aware of unreported backdating and dismissed concerns about its legality. Beyer claimed Jensen had further instructed him against sending any e-mails referring to the company's backdating.

Jensen's defense countered such testimony, saying that the executive lacks the financial background to know the company was improperly reporting compensation for its options grants.

The book-cooking scheme was a well-established practice by the time Jensen joined the company, argued her defense lawyer, Jan Little. She "never for one second thought those documents were false, or wrong, or illegal," Little said.

In May this year, Brocade paid $7m to settle SEC charges of falsifying reports of income through the backdating and misreporting of stock compensation expenses between 1999 and 2004. The company neither admitted nor denied any wrongdoing. This August, Gregory Reyes, Brocade's former CEO was found guilty of securities fraud.

Reyes became the first Silicon Valley executive to come to trial over the options backdating issues that have become a favorite pursuit of the US Securities and Exchange Commission. ®

SANS - Survey on application security programs

More from The Register

next story
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Edward Snowden on his Putin TV appearance: 'Why all the criticism?'
Denies Q&A cameo was meant to slam US, big-up Russia
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Judge halts spread of zombie Nortel patents to Texas in Google trial
Epic Rockstar patent war to be waged in California
German space centre endures cyber attack
Chinese code retrieved but NSA hack not ruled out
APPLE FAILS to ditch class action suit over ebook PRICE-FIX fiasco
Do not pass go, do cough (up to) $840m in damages
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.