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August 29, 2008 8:04:43 PM CDT

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Ex-Brocade CEO Gets 21 Months for Backdating

Posted Jan 16, 08 3:23 PM CST in Business,  Crime & Courts,  US 

(Newser) – The first executive ever convicted of backdating stock options was sentenced today to 21 month in prison and ordered to pay a $15 million fine, the Wall Street Journal reports. Former Brocade CEO Gregory Reyes was found guilty in August of 10 fraud and conspiracy charges. He said today he was “humbled” by the case.

The former honcho faced up to 20 years in jail, the Journal notes, but the penalty fell when the judge deemed that the company lost no money in the scheme. The judge, however, noted today that “Reyes acted with the intent to mislead the court.” Sixteen other execs have acknowledged backdating stock options since Reyes was first charged.

Source Wall Street Journal

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    Brocade CEO Guilty of Fraud in Backdated Options The former head of a data-storage company today became the first chief executive convicted in the crackdown on backdated executive stock options. Gregory Reyes, CEO of Brocade communications, was found guilty in federal court in San Francisco of 10 counts of conspiracy and fraud. More »

Gregory L. Reyes, right, walks to federal court with his wife Penny in San Francisco, Wednesday, Jan. 16, 2008. Reyes, the former chief executive of Brocade Communications Systems Inc., was sentenced...   (Associated Press)
Former Brocade Communications Systems Inc. Chief Executive Gregory Reyes leaves the federal building in San Francisco, in this July 26, 2007 file photo. The former chief executive of Brocade Communications...   (Associated Press)
Gregory L. Reyes, right, walks to federal court with his wife Penny in San Francisco, Wednesday, Jan. 16, 2008. Reyes, the former chief executive of Brocade Communications Systems Inc., was sentenced...   (Associated Press)
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fraud  • sentencing  • stock option backdating  • Brocade  • Gregory Reyes


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