22 janvier, 2008 12:09
Caught in Backdating's Web
Sue Reisinger
Corporate Counsel
January 22, 2008
The backdating scandal continues to ensnare chief legal officers. A sampler:
CHARGED CRIMINALLY:
William Sorin, ex-GC of Comverse Technology Inc., pled guilty to one count of securities fraud and was sentenced last May to 366 days in prison, and to pay $52 million in damages.
Myron Olesnyckyj of Monster Worldwide Inc., pled guilty to two counts of securities fraud and at press time was scheduled to be sentenced in February.
Kenneth Selterman of Take-Two Interactive Software Inc., pled guilty to falsifying a letter to regulators and was sentenced last August to three years of probation and 200 hours of community service.
SEC COMPLAINTS PENDING:
Nancy Heinen of Apple Inc. was accused by the Securities and Exchange Commission of participating in backdating that caused the company to underreport its expenses by nearly $40 million. Heinen, who left the company in May 2006 during the backdating probe, has denied the charge.
Susan Skaer, or others at her direction at Mercury Interactive Corp., according to an SEC complaint, prepared false documentation memorializing some 45 grants, including false written consents and meeting minutes. Skaer, who resigned in November of 2005, is contesting the allegations.
Lisa Berry, of KLA-Tencor Corp. and Juniper Networks Inc., who was charged by the SEC last August, is the only GC so far to be accused of backdating grants at two different companies, first at KLA and then at Juniper. Her lawyers have said she had no responsibility for accounting at either company.
LEFT THEIR POSTS:
Stuart Nichols of KLA-Tencor Corp. resigned in October as the company announced a $400 million restatement due to backdating.
Sharon LeDuy of CNET Networks Inc., quit Oct. 11, 2006, after an internal probe found "deficiencies with the process by which options were granted at CNET."
Alan Bouffard, who was general counsel at Boston Communications Group Inc., decided to "accelerate his retirement effective immediately" in October 2006, following an internal review.
Joann Reiter of F5 Networks Inc., stepped down in November 2006 on the recommendation of a special committee probing backdating.
Jonathan Draluck, GC at iBasis Inc., in Burlington, Mass., was terminated in October 2007 on the advice of a special committee investigating backdating.
