Feeds

Judge bounces ex-Brocade chief's appeal bid

Storage fraudster must face the music

The next step in data security

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.