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No officer of Brocade’s finance department has been criminally charged in the backdating investigations of the company.But in August, prosecutors won a surprisingly sweeping victory in their inaugural backdating case against Jensen’s former boss, ex-CEO Gregory L. A 12-member jury convicted Reyes of 10 felonies for his role in the illegal granting of employee stock options at Brocade.
Artificially dating a corporate document is not in and of itself illegal. Reeves—one of two prosecutors who also tried Reyes—made the rationale for the government’s case very plain: “Stephanie Jensen was the key person who ensured that the details of this fraud were carried out as they were, [and] this conduct was unacceptable.” Not everyone agrees with the distinction that the defense is trying to make regarding the responsibility for Brocade’s reporting. It’s a question of whether she committed an act,” says Michael Klausner, an expert in corporate governance at Stanford Law School.
In a letter to Fortune Magazine she told an editor that she, as well as other high-ranking members of the finance department, had been aware of the practice of backdating stock options to rank-and-file employees.
Moore's conflicting statements were not disclosed during the trial, and prosecutor Adam Reeves made numerous statements to the jury using Moore's testimony to support his argument that Reyes had deceived Brocade's finance department; he presented a diagram to illustrate that no one in the finance department was aware of the backdating; he made statements in his closing arguments claiming that employees of the finance department did not have any idea that the backdating had occurred, adding that the government's theory, based on their investigational findings, supported this conclusion.
As the first backdating case filed by the Securities and Exchange Commission, it has been at the forefront of the backdating scandal.
Jensen’s attorneys quickly have tried to make the case as much a battle over which department—HR or finance—ought to shoulder the blame for what amounts to a compensation and accounting scheme as over Jensen’s personal role in the fraud.After graduating from high school, Reyes attended Saint Mary's College of California in Moraga, California, where he obtained a degree in Business Administration in 1984.