Feeds

Second ex-Brocade exec hit with guilty verdict

The weed of backdating bears bitter fruit

Secure remote control for conventional and virtual desktops

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." ®

Boost IT visibility and business value

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
'Aaaah FFS, 'amazeballs' has made it into the OXFORD DICTIONARY'
Plus: 'EE, how shocking, ANOTHER problem I face with your service'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.