Prosecutors argued that Reyes sought to keep the backdating secret, however, and the jury convicted him on 10 counts of securities fraud after deliberating more than five days. Reyes appealed, citing evidence that at least some members of Brocade’s finance department knew about the backdating. The appellate court threw out Reyes’ conviction and granted him a new trial.Jensen was convicted separately of falsifying corporate records.While the practice itself is not illegal, accounting rules require companies to factor it into their earnings as a “noncash” expense.
He also was a part owner of the San Jose Sharks hockey team, with a personal fortune of several hundred million dollars. Roberts was indicted and the SEC filed a civil complaint against him. Lawyers for Mc Afee presented the results of their investigation to government lawyers.In preliminary papers, they also allege that Reyes benefited personally from exercising backdated options and by selling company stock at prices that were inflated because of misstated earnings. District Court by President Bill Clinton after serving as a private attorney and as a prosecutor with the San Francisco district attorney”s office and the Watergate Special Prosecution team in Washington, D.Prosecutors may feel it will help them prove Reyes intended to break the rules if they can argue that Reyes had a personal stake in the backdating, according to Henning, especially after the appellate court “poked a big hole” in the government’s previous argument that Brocade’s finance department was kept in the dark. C.; handles a variety of civil and criminal cases and recently sentenced Silicon Valley financier William “Boots” Del Biaggio III to eight years in prison on fraud-related charges.
The trial is likely to be watched intently in Silicon Valley, where Reyes has been a prominent figure and stock options have been a central feature of compensation for workers at many tech companies.