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Greg Reyes has become the first CEO to face criminal charges in the stock options scandal.
The U.S. Attorney's Office office today filed fraud charges against the former Brocade boss and the company's former human resources VP Stephanie Johnson. (See Reflections on Reyes.)
Reyes, Johnson, and former CFO Tony Canova were also named in a civil complaint filed by the SEC. The U.S. Attorney's Office charges that Reyes and Johnson "routinely backdated stock option grants to give employees favorably priced options." Reyes and Johnson will be ordered to appear in court August 2.
The civil suit claims Canova learned of the backdating after joining Brocade, but did not tell the company's auditors and signed false and misleading financial statements and SEC filings.
The U.S. Attorney's Office said the charges resulted from an 18-month investigation by the SEC and the Federal Bureau of Investigation (FBI). If the executives are convicted, the maxiumum penalty is five to 20 years in prison plus a $5 million fine.
With the move to the cloud, CISOs must shift priorities from operating security programs to overseeing (monitoring and auditing) outsourced cybersecurity programs.
2022 was a boon year for IT salaries. 2023 came in like a beast with layoffs, raise freezes, and ChatGPT, but that beast has few teeth.
Age is only a number. Don't let a high number cancel your career.
