US District Judge Charles Breyer yesterday sentenced Stephanie Jensen to four months in a federal prison, plus three months to be served in a halfway house, for her conviction on stock option backdating-related charges. Judge Breyer also fined her $1.25 million.
Jensen, the former VP of human resources at Brocade Communications Systems, remains free while she appeals her conviction on two felony charges of falsifying corporate records. Judge Breyer has similarly allowed her former boss at Brocade, Gregory Reyes, to remain at liberty while his appeal is processed.
As he did with Reyes’ sentence, Breyer gave Jensen less time than the six months in prison federal prosecutors requested. Of course, it remains to be seen whether Jensen or Reyes — the only two American executives to go on trial for backdating charges and to be convicted by juries — ever does a day behind bars.
“I am so sad today,” Jensen said at the sentencing. “I would do anything to be able to go back in time and make different choices and spare others from the impact of all this. I stand before you today with sadness and humility and regret. I accept responsibility for my actions.”
Meanwhile, Nancy Tullos settled civil charges with the SEC earlier this month, agreeing to pay a penalty of $100,000. The former HR VP at Broadcom also agreed to pay more than $1.3 million to repay the value of stock options she received from the chip maker, plus interest, an amount that will be offset by the value of her stock options that were cancelled by the company.
Tullos previously pleaded guilty to one federal charge of obstructing justice, and she may play a key role in the government’s potential prosecution of present and former Broadcom executives on backdating charges.
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