Feeds

Ex-Brocade CEO Reyes gets 18 months for stock back-dating

'Man of integrity' now a shell

Top 5 reasons to deploy VMware with Tegile

Disgraced ex-Brocade CEO Greg Reyes, who appealed in 2007 against a 21-month prison sentence for stock option backdating, has been given an 18-month term in the slammer plus a $15m fine.

Reuters reports that this was given to him by the same judge who had initially sentenced him three years ago, and it works out at $33,708 a night inside.

Reyes' backdating has proved to be a costly enterprise; he's previously paid $12.5m to settle a Brocade-initiated lawsuit.

Some 400 friends, family members and colleagues reportedly wrote to the judge asking him to be lenient, which he said was remarkable, but he also pointed out Reyes had lied in court.

Reyes' lawyer Stephen Neal read out a statement on behalf of his client who was too distraught to do it himself. In the statement Reyes declared: "I am a shell of the man I once was."

Neal went on to gush: "I find Greg Reyes a man of extraordinary integrity. I would trust him with everything in my life, from my family to the shirt off my back."

That cut no ice with the judge, who said he had to uphold the law relating to corporate integrity.

Reyes' colleague in the backdating, ex-Brocade HR head Stephanie Jensen, got a four-month jail term in 2008 plus a fine of $1.25m. This is subject to an appeal.

Back-dating stock options meant that executives awarded the options could realise them by buying the stocks at a much lower price than at the time of the stock option grant, and thus make substantially larger gains. Brocade has paid $160m to settle a class-action lawsuit pursued by aggrieved investors as well as $7m to settle fraud charges.

Reyes' lawyers said he might appeal once more. He certainly does not want to go to prison, which unless this last appeal succeeds he is due to do on 10 September. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.