Attorneys on both sides declined to comment, while Brocade released a short statement after the ruling.
Reyes’ lawyer, Stephen Neal of the law firm Cooley Godward Kronish, mounted a risky defense by calling no witnesses.
He told jurors the prosecution simply had not proven its case against his client.
Prosecutors have said Karatz schemed to hide from the company and shareholders illegal backdating that resulted in him and others receiving below-market exercise prices for stock options.
Law360, New York (January 7, 2010, PM EST) -- The former vice president of Brocade Communications Systems Inc.'s human resources department has been sentenced to two months in prison and ordered to pay a $1.25 million fine for her role in a backdating scheme at the data storage company. The San Jose Mercury News reported that Judge Breyer said at the hearing...
District Court for the Northern District of California sentenced Stephanie Jensen on Wednesday, ordering her to report to a federal prison camp in California within 45 days.
The former chief executive of Brocade Communications Systems Inc. In a retrial, Gregory Reyes -- the first and highest profile executive to be accused of illegal backdating -- was convicted on nine charges related to securities fraud, but acquitted of one count of conspiracy, a spokesman for the Department of Justice said. Backdating is the practice of locking in financial gains by retroactively pricing option grants on days a company’s stock price was low, in effect increasing the value of the options. Friday’s ruling was a big win for the government, which has struggled to secure convictions in these type of cases. court convicted the former chief executive of Brocade Communications Systems Inc of securities fraud on Friday, a victory for the government in its high-profile crackdown on illegal options backdating.The goal is to boost the recipient's potential windfall, but the schemes can have the effect of inflating a company's value when related expenses are left off the books.Backdating is illegal only if it's not properly accounted for.was sentenced on Wednesday to 21 months in prison for orchestrating a scheme to tamper with financial records of stock options the company offered. District Judge Charles Breyer said Reyes obstructed justice in preparing for trial.