Securities
June 08, 2007
Brocade Will Pay $7M to Settle Stock Option Fraud
According to the Securities and Exchange Commission, Brocade Communications will pay a $7 million penalty to settle charges that they performed fraudulent stock option backdating. Brocade agreed to pay to settle the charges without admitting guilt. The SEC alleges that Brocade's former chief executive and other former executives backdated stock options, misstated compensation expenses, and hid the misconduct by creating false documents.
Brocade to pay $7 mln to settle stock option fraud
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Posted by Patricia Bowling at 01:10 PM | Permalink
June 07, 2007
Hedge Fund Manager Pleads Guilty to Fraud
John Whittier, the founder of now-defunct hedge fund Wood River Capital Management, pleaded guilty to defrauding investors of $88 million. Whittier pleaded guilty to securities fraud and to having not filed stock holding disclosures with the U.S. Securities and Exchange Commission. Whittier could have spent more than 20 years in jail, but likely will only spend between 15 and 19 years in prison. Whittier also will lose $5.5 million.
Hedge Fund Manager Pleads Guilty to Fraud
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Posted by Patricia Bowling at 12:56 PM | Permalink
June 06, 2007
GE Sued for Gender Discrimination
Lorene Schaefer, a female attorney at General Electric Co., is filing a lawsuit against GE for underpaying and underpromoting its female employees. 13 GE officers and directors also are named in the lawsuit, including Chairman and Chief Executive Jeff Immelt. Schaefer's suit is hoping for class-action status and seeks $500 million on behalf of 1,500 to 1,700 female GE employees.
GE Gets Sued by Employee for Gender Discrimination
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Posted by Patricia Bowling at 12:26 PM | Permalink
June 05, 2007
WellPoint CFO Leaves
David Colby, WellPoint Inc.'s chief financial officer, has been released from the company for having violated the health insurer's code of conduct. However, Colby's policy violations were not related to the company's business and were not illegal. Because of the "non-business nature" of the actions, WellPoint did not provide any additional information. Joe Francis, a Bank of America analyst, said of Colby's departure: "The market will be upset initially about Mr. Colby's departure, because he is such a fixture in the industry, but we expect it will soon forget all this."
WellPoint CFO Out Amid Conduct Violations
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Posted by Patricia Bowling at 12:00 PM | Permalink
June 04, 2007
Tax Fraud Charges for Four Ernst & Young Partners
U.S. prosecutors charged four current and past Ernst & Young accountants with promoting fraudulent tax shelters. Prosecutors did not bring criminal charges against the accounting firm; however, the firm has been under criminal investigation since at least mid-2004.
Tax-Fraud Charges for 4 From Ernst & Young
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Posted by Patricia Bowling at 11:36 AM | Permalink
