Brocade backdating forum dating russian
In the complaint filed in federal court in San Jose, the SEC accused the former Mercury officers of perpetrating a fraudulent scheme from 1997 to 2005 to award themselves and other employees undisclosed secret compensation by backdating 45 different stock-option grants, failing to disclose hundreds of millions of dollars of compensation expenses, and falsifying documents.
The SEC also contended that the four former Mercury executives made fraudulent disclosures about the company’s backlog of sales and structured fraudulent loans for stock-option expenses by overseas employees to avoid recording expenses.
“They cannot demonstrate that Gregory Reyes directed or brought about the inaccuracies ... The government has suffered setbacks in its probe into options backdating.
In December, a federal judge dismissed backdating-related charges against Broadcom Corp BRCM.
The SEC charged that Brocade did not disclose the hundreds of millions of dollars in compensation expenses to investors and falsified its reported income from 1999 to 2004.
According to August 10, 2006 press reports, Brocade Communications settled the derivative lawsuit that shareholders had filed in federal court in San Francisco in connection with Brocade's options-award timing miscues, in exchange for an agreement to adopt certain therapeutic governance measures and the payment of 5,000 in legal fees.
The government accused four Mercury executives, including Amnon Landan, the company’s former chief executive, of perpetrating an elaborate fraud on investors.
The charges were filed as the SEC reached a million settlement with Mercury, now owned by Hewlett-Packard, and a million settlement with Brocade.
Two attorneys representing Landan in the civil claims declined to comment on the new SEC allegations. “Susan had no responsibility for accounting at Mercury. We look forward to proving that in court,” Haag said.
Smith’s attorney, Patrick Robbins, said his client “acted in complete good faith as the chief financial officer. Smith will contest every one of them.” Abrams’ attorney, Douglas Young, said in a statement, “We are disappointed that the SEC has taken this action.
Brocade of San Jose agreed to pay the $7 million penalty to the SEC to settle charges that its former executives committed securities fraud by repeatedly granting backdated stock options.