Feeds

Judge bounces ex-Brocade chief's appeal bid

Storage fraudster must face the music

Intelligent flash storage arrays

A federal judge has denied a bid by Greg Reyes, the former CEO of storage switch maker Brocade, to launch an appeal against his conviction for stock options fiddling.

Reyes' legal team had high hopes for the challenge because they claim a key prosecution witness has recanted her testimony. The lawyers said that Brocade's former stock administrator Elizabeth Moore now claims she lied on the stand in the original trial, under pressure from prosecutors and in fear of losing her current job, according to AP.

She has refused to testify again unless granted immunity from perjury prosecution.

Northern California US District Court judge Charles Breyer was unimpressed by the U-turn yesterday, ruling that it would be unlikely to change the verdict on Reyes. "What's new is she feels badly for testifying in a certain way. That's not new evidence," the judge said.

Reyes was the first Silicon Valley bigwig to be indicted in a SEC probe into endemic stock options fraud that embroiled dozens of firms. Investigations have centred on how stock option backdating - not illegal itself at the time - was illegally hidden from investors and regulators.

The Reyes trial found that Brocade's option chicanery was obscured with criminal intent. Former human resources chief Stephanie Jensen was also found guilty of involvement in the scam.

Wednesday's decision means that Reyes' convictions of August 7 stand, and he remains scheduled for sentencing on January 16. Jail time of up to 20 years is possible.

Brocade itself has deflected SEC ire by coughing a fine of $7m. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.