A third senior Brocade executive is facing federal charges in relation to the back-dating of stock options in the...
US. The firm's CEO was convicted earlier this month for not properly accounting for such options.
The US Securities and Exchange Commission (SEC) has now filed fraud charges against Michael Byrd, the former chief financial officer and chief operating officer of Brocade.
He is accused of failing to intervene in illegal accounting activity and for not properly accounting for options he had received. Former CEO Gregory Reyes was convicted on 7 August over the wrongful back-dating of options, even though he never financially benefited from the deals at the firm.
He now awaits sentence. In addition, Stephanie Jensen, a former human resources manager at the company, still faces charges filed last year.
The back-dating of options is not illegal, but failing to accurately account for them to shareholders and the authorities is.
Brocade is not commenting on any of the charges laid against its former executives. It is one of many Silicon Valley companies that have seen former or current executives face similar back-dating charges.