On appeal, that decision was overturned on the grounds the prosecution "made a false assertion of material fact to the jury during closing arguments," wrote .
The government has been trying to win a number of backdating options cases, and it appears this victory could land Reyes in jail, according to news reports.
[paragraph 9]TITLE: Bush Supports Businesses in Debates Over Changing Options Accounting REPORTER: Michael Schroeder DATE: Apr 10, 2002 PAGE: A2 LINK: SB1018390978662248640,00TOPICS: Accounting SUMMARY: The proper accounting treatment for stock options is receiving attention again.
President Bush is in favor of the current accounting for stock options; however, Federal Reserve Chairman Alan Greenspan is supportive of including stock options as an expense on the income statement.1.) What are stock options? Should stock options granted to executives in exchange for services provided by the executive be included as an expense on the income statement?
Since recognition means depiction of an item in both words and numbers, with the amount included in the totals of the financial statements, disclosure by other means is not recognition.
Disclosure of information about the items in financial statements and their measures that may be provided by notes or parenthetically on the face of financial statements, by supplementary information, or by other means of financial reporting is not a substitute for recognition in financial statements for items that meet recognition criteria.
(AP Photo/Paul Sakuma, file) less FILE - In this July 26, 2007 file photo, former Brocade Communications Systems Inc.
This is the not the first case brought by the government against Reyes, who had been found guilty on 10 counts of backdating options in 2007, where he was fined million and sentenced to 21 months in prison.
Another appeal may be in the works after the latest guilty finding by a jury.
Gregory Reyes, ex-CEO of Brocade Communications and former owner of the San Jose Sharks, was found guilty by a federal jury on March 26 of intentionally backdating stock options for the benefit of employees and himself, according to the .
Karatz's attorney, John Keker of San Francisco's Keker & Van Nest, claims that his client was "erroneously denied" a jury instruction that state Karatz could not have committed fraud in concealing KB's backdating practices if he was relying on an attorney's advice.
The prosecutors claim such an instruction would have no bearing on the verdict, since Karatz lied during subsequent investigations, removing any good faith arguments.