Word Is... Stock Options Charges Emerge As the Next Corporate Scandal.(Brocade Communications Systems )(Gregory Reyes, Stephanie Jensen , Antonio Canova )

US Banker | September 1, 2006| | Copyright

Finally, the poised ax has fallen. After months of warning that up to 80 companies are being investigated for manipulating employee stock options, Federal prosecutors in July charged former officers of technology group Brocade Communications Systems with securities fraud in the first court action. Former chief executive Gregory Reyes, human resources vp Stephanie Jensen and CFO Antonio Canova are accused of using practices known as "spring-loading" and "backdating." The three were also hit with related civil charges. From 2000 to 2004, authorities allege, Brocade hid millions ...

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