More Charges Are Filed in Brocade Options Case

Federal prosecutors added more charges against the nation’s first two executives charged in a widening crackdown on the backdating of stock options.

Gregory Reyes, the former chief executive of Brocade Communications Systems Inc., and Stephanie Jensen, Brocade’s former vice president of human resources, were originally charged with one count each of securities fraud in a criminal complaint July 20. Authorities allege the backdating of stock options was, in part, cause for the company to restate financial results for fiscal years 1999 through 2004, shaving 20 cents off previously reported earnings-per-share figures.

According to an indictment unsealed Thursday, the two were charged with eight counts each of securities fraud, including making false statements in Securities and Exchange Commission filings, and of falsifying books and records. Reyes is accused of four other counts, including making false statements to company auditors.