O, Gregory Reyes, was sentenced to 21 months in prison and a million fine by a federal judge in San Francisco earlier this month after being found guilty at trial of 10 counts of conspiracy, securities fraud and making misleading statements about Brocade’s finances. PK general counsel William Sorin was sentenced in U. District Court in Brooklyn to a year in prison for his role in a backdating scheme. Last week, former Monster Worldwide Inc () CEO Andrew Mc Kelvey, who is terminally ill, struck a deal with federal prosecutors in New York in which he admitted to options-related wrongdoing but will avoid prison time.
Fifty-two companies currently under criminal investigation. Moreover, the company avoids having to expense the options as current compensation, thus increasing earnings in the near term.
As a consequence, the option is immediately profitable, or “in the money,” to the option holder.
More than 200 companies have disclosed internal audits or government probes surrounding options practices. District Judge Jed Rakoff to sentence her only to probation, saying that she had owned up to her mistakes and would not repeat them.
Argo, 46, of Baltimore, Maryland, could have faced at least nine years in prison under federal sentencing guidelines. But Rakoff said that some prison time was necessary in the case. I truly have.” Backdating stock options in itself is not illegal, as long as it is properly disclosed and accounted for in company earnings statements.
But sales elsewhere in the world jumped 34 percent (23 percent when you exclude the effect of currency exchange rates).