In Pictures: Hard time, 10 Tech CEOs sent to the s...
Gregory Reyes, Brocade
The practice of backdating stock options for financial gain is not necessarily illegal, but in the case of Brocade’s then CEO Gregory Reyes, a jury found otherwise – twice. Backdating is advantageous if it makes the price employees pay for the stock less than the current price, generating an instant profit boost for the employees. Reyes insisted throughout that he didn’t know the finance department at Brocade was engaged in the practice. In 2007 he was convicted at a second trial, served 18 months in a California prison and was released last December. After his release, he asked the U.S. Supreme Court to review his case, but it turned him down.
In Pictures: Hard time, 10 Tech CEOs sent to the slammer