Feeds

Second ex-Brocade exec hit with guilty verdict

The weed of backdating bears bitter fruit

SANS - Survey on application security programs

A second former executive at Brocade was convicted Wednesday for participating in the company's stock option backdating skulduggery.

After one day of deliberation, a San Francisco federal jury found Stephanie Jensen guilty of both charges she faced: conspiracy and falsifying corporate records.

Jensen, the former vice president of human resources at Brocade, faces up to 20 years in prison. She will be sentenced on March 12.

Brocade's former chief executive, Gregory Reyes, also awaits sentencing after a jury convicted him last August of 10 counts related to the backdating scheme.

Prosecutors claim Jensen conspired with Reyes to falsify executive options records so they appeared to have been awarded when Brocade's stock was at quarterly lows. By failing to disclose the practice with investors and regulators, US authorities say the two illegally inflated Brocade's earnings.

In May, Brocade paid $7m to settle SEC charges of falsifying reports of income through backdating and falsifying compensation expenses between 1999 and 2004. The company neither admitted nor denied any wrongdoing.

Reyes and Jensen are the first Silicon Valley executives to face trial over the options backdating issues. The book-cooking hunt has become a favorite pursuit of the SEC.

"The integrity of our stock markets depends on the accuracy of the books and records of a public company," said US Attorney Scott Schools in a statement. "Accordingly, prosecuting securities fraud and manipulation will remain one of this office's top priorities." ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
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.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
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.