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Reyes Found Guilty of Fraud

Former Brocade CEO Greg Reyes faces decades in prison after a jury found him guilty of securities fraud today. (See Reyes Charged With Fraud, SEC Gets Formal With Brocade, and Brocade Being Investigated.)

When the the guilty verdict on all 10 counts of stock options backdating was delivered, Reyes glared at the jury while his wife sobbed, according to news reports.

U.S. District Court judge Charles Breyer set sentencing for November 21.

The one-time Brocade supremo now faces up to 20 years in prison for most of the counts against him. He joins a growing list of high-profile executives convicted of fraud in the last few years. (See Ebbers Sentenced: See You in 2030, WorldCom's Sullivan Gets Five Years, and 2006 Storage Winners & Losers .)

Today's verdict was the latest twist in a case that has been closely watched by other firms, both in the IT industry and elsewhere. Dozens of companies have been investigated for options backdating, and Reyes's trial was viewed as a benchmark in the government's efforts to stamp out corporate fraud. (See Backdating Backlash and Vendor Options Draw SEC Scrutiny.)

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