On March 18, 2008, Stephanie Jensen, Brocade’s former Human Resources Director, was sentenced to four months in prison and three months in a halfway house and ordered to pay a $1.25 million fine based upon her December 2007 conviction on charges of conspiracy and falsifying corporate records related to stock option backdating. At sentencing, Ms. Jensen reportedly expressed regret about and accepted responsibility for her actions. Judge Charles Breyer reportedly stated that he believed Ms. Jensen’s remorse was genuine, but that the severity of the sentence was necessary as a deterrent to other executives.
Brocade’s former CEO, Gregory Reyes, was sentenced in January 2008 to 21 months in prison based on his conviction on ten felony charges related to stock option backdating. For our previous posts on the Reyes proceedings, please click here, here, here, here, here, here, here, here, here, here, here, and here.
Both Jensen and Reyes remain free pending appeal of their convictions.