Brocade backdating stock options Camdult
For example, former Monster Worldwide Inc () general counsel Myron Olesnyckyj pleaded guilty in February to criminal options-related fraud charges and admitted in court that he gained 1,000 from backdating schemes. PK former CEO, Jacob “Kobi” Alexander, is in Namibia fighting extradition to the United States to face charges that he and others backdated millions of stock options for themselves and other employees when the shares were trading at lows. “What evidence is there that he actually understood the accounting implications of the backdating of the stock? “It is an area that is relatively new in terms of the charges out there,” conceded Michael Garcia, the U. Attorney for the Southern District of New York, in a July 25 Reuters interview.
He added, however: “I am fairly confident that we are going to see more options charges.” Complicating criminal backdating prosecutions of Silicon Valley companies are recent personnel changes in the San Francisco U. Attorney’s office, which took a leading role in such cases early on.
It was forced to restate earnings by recognizing a stock-based expense increase of 3 million between 19, after allegedly manipulating its stock options grants for the benefit of its senior executives.
As a result, numerous companies are conducting internal investigations to determine if, when, and how backdating occurred, and are filing amended earnings statements and tax forms to show the issuance of “in the money” options in place of the “at the money” options that were previously reported.
This is not always the case, according to a ruling by federal judge William Alsup of the U. District Court for the Northern District of California.
SAN FRANCISCO (Reuters) - Prospects for criminal prosecutions of scores of options-backdating cases rest heavily on the outcome of a jury trial in which the judge has already questioned the strength of the government’s evidence.
The case against former Brocade Communications Systems Inc BRCD.