Brocade CEO Greg Reyes is the first CEO charged for backdating options, and very soon he could also get another first, prison time.
The defense tied up their case last week. Reyes’ lawyer Richard Marmaro said prosecutors didn’t present incriminating evidence, and that Reyes was unaware illegal activity was taking place as other employees served as a screen shielding Reyes from criminal activity. The idea here is that these employees limited Reyes’ comprehension of what he was doing when he signed off on backdated stock-option grants.
Ok. Maybe he should have had this same group of employees filter his emails, like the one he wrote a fellow board member during the time the backdating took place: ‘it is illegal to backdate options grants.’
The defense negated any connection between the backdated grants and this emailed statement.
Corporate Secretary magazine