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Brocade Ruling Gets Erased

12:50 PM -- The Gregory Reyes conviction got overturned Wednesday.

It's a big deal to the tech world, because prosecutors had picked the former Brocade Communications Systems Inc. (Nasdaq: BRCD) CEO as the poster boy for the whole stock-options backdating scandal that broke in those long-gone days of the mid-2000s. (See Broadcom to Restate Earnings, Feeling Less Marvell-ous, Juniper Dusts Off Its Eraser, and Vitesse Execs Get the Axe.)

Reyes was convicted, and 20 months ago was sentenced to 21 months in prison and a $15 million fine.

Not that we can take credit for it, but the sentence matched what a plurality of Light Reading readers thought was fair: a smattering of jail time, rather than the maximum of 20 years. (See Reyes Going Down.)

Anyway, Reyes appealed the case on the basis that prosecutors held back key evidence and made false statements to the jury. The sentence and fine are on hold now, while the U.S. Attorney's Office decides whether to retry him.

— Craig Matsumoto, West Coast Editor, Light Reading

Pete Baldwin 12/5/2012 | 3:58:30 PM
re: Brocade Ruling Gets Erased

I don't remember the specifics of the case, but on the surface, I'd say you have a good point.  The court is being asked to reconsider Stephanie Jensen's 4-month sentence, which according to the Chronicle had some obstruction-of-justice element to it that might no longer apply -


http://www.sfgate.com/cgi-bin/...


But still, the thought that she might go to prison while Reyes doesn't... that seems odd.

jhawk810 12/5/2012 | 3:58:30 PM
re: Brocade Ruling Gets Erased

Wow,


So the HR lady does hard time, while the boss who no-doubt profited the most from the backdating, and probably came up with the idea gets a free pass, (not to mention the "hundreds" of other execs who weren't even prosecuted, and dragged to court).


And I'm betting Brocade or it's insurrers paid his lawyer's fees (wonder about her's).


OK, prosecutors shouldn't lie to the jury, fair enough. They deserved to get slapped. But the bottom line doesn't feel like justice was served in either case.


Yours naively,


j

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