Brocade CFO Charged By SEC with Fraud in Stock Options Backdating Scandal
The Wall Street Journal is reporting today that the SEC has charged Brocade's CFO, Michael Byrd, with fraud related to his role in Brocade's stock options backdating.
Stock Option Backdating Charges Coming Soon Against KLA-Tencor General Counsel
According to an article in The Recorder, the SEC plans to file civil charges against the former General Counsel of KLA-Tencor, Lisa Berry, for her role in stock options backdating at that company. The SEC has said it will file these charges by September 30, 2007.
Brocade CEO Guilty in Stock Option Backdating Case
On Tuesday, as reported on the Mercury News website, the CEO of Brocade Communications System was found guilty on all ten counts related to stock option backdating charges. Here's an article from the Wall Street Journal.
Backdating is where a company retroactively sets a stock option grant date to a date when the stock was trading at a lower price so that the option is already “in the money” when an employee (typically an executive) receives the grant.
Apparently the CEO of Brocade did not benefit financially from the backdating scandal at Brocade.
