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Backdating nets former Brocade CEO sentence of 18 months

By Douglas A. Berman

In a day filled with federal white-collar news, here is one more story of note from California's federal courts: a "federal judge sentenced former Silicon Valley executive Gregory Reyes to 18 months in prison and fined him $15 million Thursday after a jury at a retrial convicted him of concealing the backdating of stock options." Here are more of the specifics: Reyes, former chief executive officer of Brocade Communications in San Jose, was initially found guilty in 2007 of misleading stockholders and federal regulators about the value of stock options issued to company employees. It was the nation's first criminal prosecution over securities backdating, the practice of increasing the value of an option to buy company stock by altering the grant date to coincide with the date of the lowest stock price...continue to full post

Full post as published by Sentencing Law and Policy on June 24, 2010 (boomark / email).