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Former HR Executive Convicted In Options Scandal

Published by on December 6, 2007

According to the AP, Stephanie Jensen, the former Vice President of Human Resources for Brocade Communications Systems, Inc., was convicted by a federal court jury in San Francisco on December 5, 2007, for conspiracy and falsifying corporate records in connection with the altering of dates on stock-option grants. Jensen’s lawyer argued during the trial that his […]

According to the AP, Stephanie Jensen, the former Vice President of Human Resources for Brocade Communications Systems, Inc., was convicted by a federal court jury in San Francisco on December 5, 2007, for conspiracy and falsifying corporate records in connection with the altering of dates on stock-option grants.

Jensen’s lawyer argued during the trial that his client was merely continuing the existing compensation practices at the company and did not know the practices were illegal.  Former employees testified, however, that Jensen told them not to communicate about the company’s options practices in emails.  The former CEO of Brocade was convicted in August of 10 counts of securities fraud in connection with the options practices.  Both now face up to 20 years in prison.

In today’s world of Sarbanes-Oxley compliance and increased diligence by the Justice Department with respect to options practices — and now Congressional inquiries into employment classifications — human resources professionals must utilize the legal resources available to them to ensure that they are in compliance with applicable laws.

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