Feeds

Judge bounces ex-Brocade chief's appeal bid

Storage fraudster must face the music

Boost IT visibility and business value

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. ®

Boost IT visibility and business value

More from The Register

next story
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
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
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
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
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
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.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.