Feeds

Second ex-Brocade exec hit with guilty verdict

The weed of backdating bears bitter fruit

Boost IT visibility and business value

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." ®

Maximizing your infrastructure through virtualization

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.