But his conviction was overturned in August by the U. Court of Appeals for the Ninth Circuit, which said prosecutors made a false assertion of material fact to the jury during closing arguments.
At the same time, a conviction against Brocade human resources executive Stephanie Jensen was affirmed, but sent back to the lower court for resentencing.
The Securities and Exchange Commission reached its first two settlements with companies in stock-option backdating cases Thursday as Brocade Communications Systems and Mercury Interactive agreed to pay fines totaling million.
At the same time, the government – which has been investigating more than 100 companies in the backdating scandal – leveled charges for the first time against former executives of Mercury Interactive.
The settlement concludes the SEC’s investigation into Brocade. The SEC said its civil case against Reyes, Jensen and former Brocade chief financial officer Antonio Canova is continuing.
“We are pleased the SEC has accepted Brocade’s offer of settlement and now have the investigation and matter concluded,” Tyler Wall, general counsel for Brocade, said in a statement. Attorney’s Office’s criminal case against Reyes and Stephanie Jensen, former vice president of human resources, is set to go to trial later this month.
“Gregory Reyes came up with a very clever and illegal scheme to get around this problem,” he said. And it was a total fraud.” But Reyes’ lawyer, Stephen Neal, of the law firm Cooley Godward Kronish, spoke of the key role the finance department of Brocade played in the case.