Ex-Brocade CEO Gets 21 Months for Backdating

Gregory Reyes was the first exec convicted of the stock options offense
By Jonas Oransky,  Newser Staff
Posted Jan 16, 2008 3:23 PM CST
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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(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.