The Securities and Exchange Commission has filed the first charges in its stock options practices investigations, charging the former chief executive of Brocade Communications Systems Inc. Gregory Reyes with misconduct linked to option grant practices.
In the complaint, filed in U.S. District Court for the Northern District of California in San Jose, the SEC alleged that between 2000 and 2004, the company concealed millions of dollars in expenses from investors and overstated its income by falsifying records relating to employee stock option grants. In January 2005, Brocade announced a series of restatements, dating back to 1999.
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