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Backdating charges filed
http://marketplace.publicradio.org/shows/2006/07/21/AM200607216.html
The Department of Justice and the Securities and Exchange Commission have brought the first criminal charges in the expanding stock options backdating probe. John Dimsdale reports.
Whether or not 'backdating' is legal or not is still to be resolved. The coverup or failure to disclose the backdating is illegal.
Companies who have backdated shares or individuals who have received income from such shares may be required to return the money.
This may belong with the Enron thread. It is a similar topic concerning government regulation and oversight of businesses.
http://marketplace.publicradio.org/shows/2006/07/21/AM200607216.html
The Department of Justice and the Securities and Exchange Commission have brought the first criminal charges in the expanding stock options backdating probe. John Dimsdale reports.
Anyone who might have taken options, or if one has received backdate options from one's company, one may wish to follow this story.CHERYL GLASER: Here at home, US regulators have started their crackdown on companies accused of backdating stock options. Two former executives with Brocade Communications were charged yesterday, as John Dimsdale reports
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JOHN DIMSDALE: Gregory Reyes is the first former chief executive brought up on criminal charges of fraudulent dating of stock options. But he's unlikely to be the last.
Federal investigators say they're looking at some 80 companies accused of changing the dates on stock option offers to benefit employees.
Research by Indiana University professor Randall Herron found more than two thousand companies manipulated option dates going back to 1995.
Whether or not 'backdating' is legal or not is still to be resolved. The coverup or failure to disclose the backdating is illegal.
Companies who have backdated shares or individuals who have received income from such shares may be required to return the money.
This may belong with the Enron thread. It is a similar topic concerning government regulation and oversight of businesses.
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