Original URL: http://www.channelregister.co.uk/2008/03/19/brocade_stephanie_jensen_sentenced/
Former Brocade human resources chief Stephanie Jensen was sentenced to 4 months in prison today and fined $1.25m for her part in a stock option backdating scheme.
Jensen must also spend her first three months after her prison term in a halfway house and will be under supervised release for one year.
"I would do anything to be able to go back in time and make different choices and spare others from the impact of all this," Jensen told US District Judge Charles Brewer in San Francisco. "I stand before you today with sadness and humility and regret."
Jensen was convicted (http://www.theregister.co.uk/2007/12/06/stephanie_jensen_found_guilty/) last Dec. of conspiracy and falsifying corporate records at Brocade. She and her former boss, then-CEO Gregory Reyes, were both charged with manipulating employee options records between 2000 and 2004 so they appeared to have been awarded when Brocade's stock was at quarterly lows. By failing to disclose the scheme with investors and regulators, US feds say the two illegally inflated Brocade's earnings.
Reyes was sentenced (http://www.theregister.co.uk/2008/01/16/reyes_sentenced_to_21_months/) in Aug. to 21 months in prison and fined $15m for heading the financial skulduggery. Both Jensen and Reyes currently remain free pending appeal.
Judge Breyer said that although he believed the sincerity of Jensen's remorse, her sentence would deter other executives from aiding in illegal backdating schemes.
Prosecutors has sought a prison sentence of six months for Jensen, while her lawyer sought probation and community service.
Jensen and Reyes are the first two executives to be charged for illegal backdating. To date, a total of 17 executives have been charged with the offense. Nine have plead guilty.
In May, Brocade paid $7m to settle SEC charges for falsifying reports of income through backdating. The company neither admitted nor denied any wrongdoing. ®
Former Brocade boss gets 21 months in prison (16 January 2008)
http://www.channelregister.co.uk/2008/01/16/reyes_sentenced_to_21_months/
Judge bounces ex-Brocade chief's appeal bid (10 January 2008)
http://www.channelregister.co.uk/2008/01/10/greg_reyes_appeal_denial/
Second ex-Brocade exec hit with guilty verdict (6 December 2007)
http://www.theregister.co.uk/2007/12/06/stephanie_jensen_found_guilty/
Ex-Broadcom HR chief falls in stock options scandal (1 December 2007)
http://www.channelregister.co.uk/2007/12/01/hr_options_broadcom/
Second ex-Brocade exec goes on trial over options accounting (27 November 2007)
http://www.channelregister.co.uk/2007/11/27/brocade_backdating_stephanie_jensen/
HP's Mercury settles over options scandal (16 October 2007)
http://www.theregister.co.uk/2007/10/16/hp_mercury_options_backdating_lawsuit/
Report: Steve Jobs gets SEC subpoena (20 September 2007)
http://www.theregister.co.uk/2007/09/20/jobs_apple_backdating_subpoena/
Michael Dell 'not involved' in accounting fraud (6 September 2007)
http://www.channelregister.co.uk/2007/09/06/michael_dell_denies_involvement_accounting_fraud/
Former Juniper attorney faces SEC's wrath (29 August 2007)
http://www.theregister.co.uk/2007/08/29/former_juniper_attorney_sec_charges/
Brocade securities probe hits former CFO (20 August 2007)
http://www.channelregister.co.uk/2007/08/20/brocade_sec_cfo_michael_byrd/
Brocade ex-CEO guilty of options fraud (7 August 2007)
http://www.channelregister.co.uk/2007/08/07/brocade_ceo_guilty_options_fraud/
Ex-Broadcom CEO broadsided by cocaine and orgy torture charges (16 July 2007)
http://www.theregister.co.uk/2007/07/16/broadcom_ceo_charges/
© Copyright 2008