Tuesday, June 19, 2007
The first criminal case involving backdating stock options began in San Francisco against Gregory L. Reyes, former CEO of Brocade Communications. It is expected to be a test of what the government must prove to establish that backdating is a securities fraud crime. See NYTimes, Trial Starts for Former Chief in Options-Backdating Case; WSJ, Trial Opens in Brocade Backdating Case.
Meanwhile, in Chicago, the three-month trial of Lord Conrad Black, accusing of looting Hollinger International, is wrapping up. The prosecutor presented closing arguments, and the case is expected to go to the jury soon. See NYTimes, Closing Arguments Begin in Black Trial.