Guilty decision could see more than 170 other backdating cases also brought to court by the SEC
Accountancy Age, 09 Aug 2007
The first guilty verdict in a case relating to backdating was handed down by a jury in a San Francisco court this week.
The conviction of the former chief executive of Brocade Communications Systems on all ten counts in the government's first criminal prosecution for options backdating could herald the start of a new wave of convictions. Some 170 others have been charged and are being investigated by the US securities regulator on similar counts.
Gregory Reyes, 44, who was brought to court through a joint FBI and SEC investigation, faces decades in prison and millions in fines, LawFuel.com reported.
The jury found him guilty of conspiracy to commit securities fraud, mail fraud and falsifying books, records and accounts.
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