Fired McAfee Executive Is Charged With Options Fraud
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SAN FRANCISCO -- McAfee's former top lawyer was charged Tuesday with stock options tampering that muddied the finances of the computer security software maker.
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The U.S. Securities and Exchange  Commission has filed civil fraud charges against the former  general counsel of Monster Worldwide Inc.  in a stock  options backdating case, an agency official said on Thursday.
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TORONTO -- The U.S. Securities and Exchange Commission on Monday filed civil fraud charges against a former CEO and three other former top executives of Canadian telecom equipment maker Nortel Networks Corp.
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The former chief executive of Brocade Communications Systems Inc. vouched for his co-defendant in a closely watched stock options backdating case, asserting in documents unsealed Wednesday that she didn't know she was executing improper transactions.
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Former Computer Associates International Inc. chairman and chief executive Sanjay Kumar has been charged with securities fraud, conspiracy and obstruction of justice in connection with a multibillion dollar accounting scandal at the software company.
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(InfoWorld) - Law-enforcement officials in Namibia have arrested the former chief executive of Comverse Technology Inc., a fugitive after being charged in August with backdating millions of the company's stock options, the U.S. Department of Justice (DOJ) announced Wednesday. Jacob "Kobi" Alexander was arrested Wednesday on a Namibian warrant issued at the request of the U.S. government. He was one of three former executives at the software vendor charged with conspiracy to commit securities fraud, mail fraud and wire fraud in August in U.S. District Court for the Eastern District of New York. The three, including former Chief Financial Officer David Kreinberg and former General Counsel William F. Sorin, were accused of operating a secret stock options slush fund, with issuing false and misleading financial statements, and with reaping millions of dollars in profits through a scheme to backdate stock options between 1998 and 2002, the DOJ said. The DOJ will seek Alexander's extradition to the U.S. to face multiple charges, many of which were made public Wednesday: conspiracy, two counts of securities fraud, eight counts of making false filings with the Securities and Exchange Commission, four counts of mail fraud, 14 counts of wire fraud, and three counts of money laundering. The indictment also seeks force Alexander to forfeit about US$138 million in assets, the DOJ said. Alexander is scheduled to appear before a court in Windhoek, Namibia, within 48 hours. The effort to find Alexander was an "international manhunt," U.S. Attorney Roslynn Mauskopf of the Eastern District of New York said in a statement. If convicted of the most serious charge, securities fraud, Alexander faces a possible sentence of 25 years in prison. The former Comverse executives were the second group to be charged in connection with options backdating. The U.S. Securities and Exchange Commission has been investigating several tech companies for irregularities in connection with granting employees stock options, a common practice in the IT industry in the late '90s. In July, two former executives with storage networking vendor Brocade Communications Systems Inc. were charged with securities fraud.
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Former Computer Associates  International Inc. on  chief executive Sanjay Kumar was charged  on Wednesday with securities fraud and obstruction of justice  stemming from a two-year investigation of improper accounting  at the software maker.
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(InfoWorld) - A civil lawsuit accusing Henry Nicholas III, the former president and CEO of Broadcom Corp., of mistreating employees, using illegal drugs and paying for prostitutes, has reportedly caught the attention of U.S. law enforcement officials investigating stock options backdating at the company. Nicholas, who resigned from Broadcom in January 2003, is the target of a civil lawsuit brought by cousins Kenji and Scott Kato, both former employees of Nicholas. The lawsuit, filed in November in Superior Court of California for the County of Los Angeles, alleges that Nicholas and his lawyers reneged on a settlement for wrongful termination and other claims. The Wall Street Journal reported Friday that the U.S. Attorney's Office for the Central District of California, which is investigating stock options backdating at Broadcom, has begun looking into the Katos' claims. The U.S. Federal Bureau of Investigation interviewed Kenji Kato in April, and this week, it began interviewing other Nicholas employees, the news report said. Kenji Kato's lawyer, Joseph Kar, declined to comment on the U.S. Attorney's interest in the case. A spokeswoman for the U.S. Attorney's office didn't immediately return a phone call seeking comment on the investigation. Broadcom, a chip maker for communications devices, announced in January it would take a $2.24 billion charge for stock options backdating. Broadcom said it found options for 232.9 million shares of company stock that had been backdated, with 9.7 million of those shares going to executive officers. Kenji Kato, who describes himself in court documents as a former personal assistant of Nicholas', said Nicholas and his lawyers offered him a settlement of more than US$2.9 million in November, then withdrew it. Kato had accused Nicholas of wrongful termination, breach of contract and infliction of emotional distress, among other things. Kenji Kato worked for Nicholas from October 1999 to April 2006, and during much of that time, Nicholas threw wild parties and regularly used illegal drugs such as cocaine, according to a court filing from May. While at Broadcom, Nicholas hired prostitutes for clients and for himself, and he spiked customer drinks with powdered ecstasy pills to lower their "inhibitions and guard," Kato said in the filing. Nicholas' lawyer, Steven Silverstein, didn't immediately return a phone call seeking comment on the lawsuit. But in court documents, Nicholas' lawyers deny the allegations and accuse Kato of attempting to extort money from Nicholas. Kato signed a confidentiality agreement when working for Nicholas, according to documents filed by Level 7 LLC and The Management Company LLC, two companies owned by Nicholas. Kato has threatened to make public "certain sensitive private alleged facts ... which he had expressly promised to keep private," the Level 7 court documents say. "Kato's wrongful conduct by issuing these threats ... will cause great and irreparable injury to plaintiffs." Nicholas regularly yelled at employees, and he demanded that Kenji Kato carry a bag with illegal drugs for him, according to Kenji Kato's filing. Nicholas also demanded that Kato use drugs along with him, Kato said. "I was regularly exposed to ... a high degree of debauchery while working for Nick," he said in his filing. "The first time I used cocaine was when Nick shoved a tiny spoon up my nose because I was falling asleep, while he was talking to me. Over time, I got sucked into his extreme lifestyle." By the end of Kato's employment, Nicholas was using "large quantities" of illegal drugs, including cocaine and heroin, and had withdrawn from his friends and family, according to Kato's May filing. Nicholas had stopped paying Kato, although he still demanded work from him, and when Kato walked out, Nicholas owed him $150,000 in back pay, the court documents say. Nicholas had promised Kato employee benefits and Broadcom stock options, but he never delivered, according to Kato's filing.
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The U.S. Securities and Exchange Commission filed civil fraud charges against the former general counsel of Monster Worldwide Inc.  in a stock options backdating case, an agency official said on Thursday.
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By JIM FITZGERALD WHITE PLAINS, N.Y. - A man who was fired by International Business Machines Corp. for visiting an adult chat room during the workday is suing the company for $5 million, claiming he is an Internet addict who deserves treatment and sympathy rather than dismissal.
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The former chief executive and others were accused of committing accounting fraud to meet earnings forecasts and investor expectations.
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A civil lawsuit accusing Henry Nicholas III, the former president and CEO of Broadcom Corp., of mistreating employees, using illegal drugs and paying for prostitutes, has reportedly caught the attention of U.S. law enforcement officials investigating stock options backdating at the company.
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Former Computer Associates International Inc. on chief executive Sanjay Kumar was charged on Wednesday with securities fraud and obstruction of justice stemming from a
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By Jim Fitzgerald THE ASSOCIATED PRESS  WHITE PLAINS, N.Y. -- A man who was fired by IBM for visiting an adult chat room at work is suing the company for $5 million, claiming he is an Internet addict who deserves treatment and sympathy rather than dismissal.
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McAfee Executive Vice President Bill Kerrigan acknowledged that there had been glitches in the roll out.
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To settle a lawsuit over backdating, McAfee has restated its finances reports for 10 years and taken a $137.4 million charge.
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The Securities and Exchange Commission said Tuesday it brought fraud and insider trading charges against former top executives of bankrupt credit card issuer NextCard Inc.