Guilty was the verdict on two federal felony charges for Stephanie Jensen, the former VP of human resources for Brocade Communications Systems. The jury returned late Wednesday with its decision, after a day of deliberation, wrapping up a two-week trial in San Francisco.
You might say Jensen is going to join her erstwhile boss, Gregory Reyes, in prison, since he was convicted of 10 felonies four months ago. It remains to be seen whether either of them — the first two American executives to go on trial for stock-option backdating charges — will actually go to a federal pen. There is a nice minimum-security federal prison across the San Francisco Bay, in the suburb of Dublin, but federal prisoners serve time wherever the government sends them, not where they would like. It’s a good thing for Jensen and Reyes that Alcatraz ceased to be a prison in 1963.
Elsewhere in the world of backdating offenses, the SEC this week brought civil charges against Maxim Integrated Products; its noted founder and long-time CEO, Jack Gifford; and the company’s former CFO, Carl Jasper. The chip maker itself got off easy — it settled the case by agreeing to a permanent injunction against violating federal fraud and securities laws, without paying a fine or penalty. Basically, Maxim promised to be good, forever. The company can now turn to bringing its SEC filings up to date, getting off the Pink Sheets and back onto “the Nazz.”
Gifford, who led Maxim for 23 years, settled his case by agreeing to disgorge (I love that verb!) $652,681 in bonuses and paying a civil penalty of $150,000. Don’t worry about that senior citizen; he’s good for the money.
Jasper, however, is not taking lightly this turn of events. He is fighting the SEC case. His attorney sounds ready to rumble. Jasper will get as much justice as he can afford.
Comments
Leave a Comment