Judge Sentences CEO Gregory Reyes To 21 Months Jail Time
You're reading Judge Sentences CEO Gregory Reyes To 21 Months Jail Time, posted on Wednesday, January 16th, 2008 at 10:27 pm in Businesses, News, on BrainBloggers at the The Business World blog. More after the jump.
Things looked bleak for Brocade Communications System Inc. when their former chief executive – Gregory Reyes - was sentenced to 21 months in prison and a fine of $15 million after he set up a plan to tamper with the financial records of the stock options that were offered by the company. At the sentencing hearing, U.S. District Judge Charles Breyer said Reyes obstructed justice in preparing for trial. Reyes broke down crying while speaking to the judge before his sentence was handed down. He was released on his own recognizance until a federal appellate court can hear the case.
Reyes became the first executive to go on trial over stock options backdating when his case went before a federal jury in San Francisco in June 2007. He was convicted in August of 10 counts of securities fraud. His case has been seen as an important test of how seriously infractions of options-related securities laws will be punished. Prosecutors had recommended a sentence of 30 to 33 months in prison, a fine of more than $41 million and nearly $90 million in restitution to repay Brocade for its losses and legal fees connected to the case.
Hi
I was wondering what the update is on his case and serving his sentence if it is upheld.
Thank you, Cathy