The Securities and Exchange Commission has charged Sycamore Networks and three of its former executives with stock options backdating charges.
Former executives of the Chelmsford, Mass.-based optical networking company agreed to pay more than $650,000 to settle the charges. Former CFO Frances M. Jewels will forfeit over $450,0000, former director of financial operations Cheryl E. Kalinen will pay about $178,000, and former director of human resources Robin A. Friedman will turn over $40,000.
Jewels also agreed to be barred from serving as an officer or director of a public company for five years, and from appearing or practicing before the SEC for five years as an accountant or attorney. Friedman is barred from appearing or practicing before the SEC as an attorney for two years.
The company was accused of having unreported options-related expenses of nearly $250 million during fiscal years 2000 through 2005. Without admitting or denying the charges, Sycamore consented to an injunction against several securities law violations, including the antifraud provisions, after cooperating with the SEC in the investigation.
"We are pleased that this matter with the SEC is now concluded as we continue to execute our strategies for the long-term success of our business," said Sycamore CEO Daniel E. Smith in a statement.
