November 12, 2008
SEC and Blue Coat Systems Settle Backdating Charges
The SEC settled charges alleging that network security company Blue Coat Systems, Inc. and its former chief financial officer Robert P. Verheecke backdated stock option grants to executives and employees and reported false financial information to shareholders. According to the SEC, from approximately 2000 through 2005, Blue Coat concealed nearly $50 million in compensation expenses associated with valuable "in-the-money" options by backdating paperwork to make it appear as if the options had been granted on earlier dates. Blue Coat and Verheecke have agreed to settle the SEC's charges without admitting or denying the allegations. Verheecke will pay more than $185,000 in disgorgement, penalties, and prejudgment interest.
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