Reyes backdating

This is the first government enforcement action – civil or criminal – to go to trial.That the government prevailed should not be surprising.

Reyes backdating

Neal cited evidence that other company executives and board members had participated in backdating, and noted that changing accounting rules have provided conflicting advice on how to value stock options.

In a risky strategy, Neal opted not to call any witnesses for the defense.

Today, a jury found former Brocade Communications Systems, Inc.

CEO Gregory Reyes guilty on all charges in a case based on backdating stock options.

Since options give employees the right to buy stock, they can increase in value if the company’s stock rises above the share price on the day the options are granted.

Reeves noted that witnesses testified they were told to increase the value of options by making the paperwork appear as if they were granted on earlier dates when prices were lower — sometimes even before the recipient had gone to work for the company — but not to pick a date when the price was at its lowest, because that would be too obvious to outside auditors.Reyes understood or knew much about the critical accounting issues involved.Equally surprising is the length of time which the jury took to come to a verdict.The prosecutors claim such an instruction would have no bearing on the verdict, since Karatz lied during subsequent investigations, removing any good faith arguments. Former Brocade CEO, Greg Reyes, went to court Monday to face the music for options backdating.Reyes reaped about

Reeves noted that witnesses testified they were told to increase the value of options by making the paperwork appear as if they were granted on earlier dates when prices were lower — sometimes even before the recipient had gone to work for the company — but not to pick a date when the price was at its lowest, because that would be too obvious to outside auditors.Reyes understood or knew much about the critical accounting issues involved.Equally surprising is the length of time which the jury took to come to a verdict.The prosecutors claim such an instruction would have no bearing on the verdict, since Karatz lied during subsequent investigations, removing any good faith arguments. Former Brocade CEO, Greg Reyes, went to court Monday to face the music for options backdating.Reyes reaped about $1.9 million in profit from backdated options, according to both sides, although his attorney noted those options were approved by company directors.

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Reeves noted that witnesses testified they were told to increase the value of options by making the paperwork appear as if they were granted on earlier dates when prices were lower — sometimes even before the recipient had gone to work for the company — but not to pick a date when the price was at its lowest, because that would be too obvious to outside auditors.

Reyes understood or knew much about the critical accounting issues involved.

Equally surprising is the length of time which the jury took to come to a verdict.

The prosecutors claim such an instruction would have no bearing on the verdict, since Karatz lied during subsequent investigations, removing any good faith arguments.

Former Brocade CEO, Greg Reyes, went to court Monday to face the music for options backdating.

Reyes reaped about $1.9 million in profit from backdated options, according to both sides, although his attorney noted those options were approved by company directors.

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Reeves noted that witnesses testified they were told to increase the value of options by making the paperwork appear as if they were granted on earlier dates when prices were lower — sometimes even before the recipient had gone to work for the company — but not to pick a date when the price was at its lowest, because that would be too obvious to outside auditors.

Reyes understood or knew much about the critical accounting issues involved.

Equally surprising is the length of time which the jury took to come to a verdict.

The prosecutors claim such an instruction would have no bearing on the verdict, since Karatz lied during subsequent investigations, removing any good faith arguments.

.9 million in profit from backdated options, according to both sides, although his attorney noted those options were approved by company directors.

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  1. I think he tells me what he does for a living, but I can’t quite make it out, and the one piece of information I manage to gather is that he goes to a lot of concerts and is losing hearing in his left ear as a result. To my immense relief, Date Four wants to talk at me while I listen intently.

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