Optionsbackdatingfraud com

Posted by / 21-Nov-2019 10:25

Optionsbackdatingfraud com

As expected, the charges focused on backdating stock options by doctoring employment documents, neglecting to record the stock-option expense on the company’s books, and misleading investors.The cascading litany of alleged charges is not likely to stop with the Brocade case.And in the final stages before the indictment, the firm remained controlled by “people in the crosshairs” (including Weiss) and so refused to meet prosecutors’ demands that might have averted the firm’s indictment.In other words, he was conducting himself as he has so often alleged that entrenched public company management behaves when management’s interests conflict with those of shareholders. The article makes for some pretty interesting reading, and includes a more detailed account of the facts and circumstances surrounding the Cooperman painting insurance fraud scam and its connection to the Milberg indictment, about which I previously wrote here (my prior post includes pictures of the now infamous Cooperman paintings).Glass Lewis found that in several instances the price of company shares increased materially between the purported grant date and the date of the filing.One of the companies Glass Lewis identified in the report is Silicon Image.Based on this analysis, Glass Lewis questioned whether the options timing scandal might be about to enter a “second act,” involving potentially “hundreds” of companies that may have backdated options grants even after the 2002 Sarbanes-Oxley reforms.

Last week the Do J brought criminal charges against two Brocade Communications Systems executives, while the SEC filed a civil suit against the same two and the CFO.And even though there are as yet no claims based on these kind of “second act” allegations, the possibility of these kinds of claims does pose a new challenge for D & O underwriters.The underwriters must now consider whether claims might yet arise based on allegations about post-2002 late Form 4 filings and stock price increases between the grant date and the filing date.According to the account, as the possibility of indictment moved closer and as the firm’s negotiations with prosecutors to avoid indictment fell apart, Weiss “repeatedly assured the partnership that it faced no danger.” He refused to bring in an outside firm to investigate.He also refused to turn over decisions about the investigation to nontargeted partners.

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