The former chief executive and another former executive at Brocade Communications have been convicted on backdating-related charges, and executives at Broadcom, Comverse, Monster, and Take-Two Interactive, have pleaded guilty. Law360, New York (May 11, 2007, AM EDT) -- In the latest development in the fallout from a massive accounting scandal at security software maker Mc Afee Inc., formerly known as Network Associates Inc., the company’s former chief financial officer has been convicted of 15 counts of securities fraud.Kent Roberts, indicted in February 2007, was found not guilty on two of three felony counts of fraud in San Francisco federal court.The jury, following a two-week trial, was hung on a third count of falsifying accounting records. corporation to be criminally tried for alleged stock options backdating violations, his lawyer's office said. Roberts had long sought his day in court to prove his innocence," Steve Neal, lead trial counsel and chairman of the law firm of Cooley Godward Kronish, said in a statement.The 2002 corporate responsibility law originally was to have “noisy withdrawal” provisions, which would have required in-house lawyers to notify the SEC if a board member failed to respond to a reported material violation.The provisions were eventually tabled out of concern they would compromise attorney-client relationships.
In particular, he caused the grant date to be changed to April 14, 2000, with a new exercise price of .75.
According to the indictment, the Board of Directors for Network Associates granted Roberts the option to buy 20,000 shares of Network Associates stock at the strike price of .62, the closing price on February 14, 2000.
In late 2000, Roberts was concerned that the grant was underwater, that is, the .62 exercise price of the grant was more than the market price for Network Associates stock.
After a five-week trial and three days of deliberations, a jury in the U. District Court for the Northern District of California on Thursday found that Prabhat Goyal had committed securities fraud, filed false reports with the U. Securities and Exchange Commission and made false statements to...
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