Reyes was seen as an important test of whether a jury considers it a crime deserving of jail time.Reyes wiped his forehead with handkerchief and glared at the jury as the verdict was announced. His conviction could embolden prosecutors in their ongoing options investigation.
Defense lawyer Jan Little had countered that Jensen had no responsibility for financial or accounting practices at Brocade and simply followed instructions from superiors to continue policies that existed before she was hired and continued after she left the company. The integrity of our stock markets depends on the accuracy of the books and records of a public company.
Jensen is not accused of personally profiting from her actions.
Reeves told jurors that Jensen and Reyes, while offering backdated options to attract talent in the competitive Silicon Valley market, conspired from 2000 onward to conceal the impact on company finances.
Reyes was charged last summer with 12 felony counts of securities fraud and other offenses.
Brocade's former vice president of human resources, Stephanie Jensen, was also charged with 12 counts. The government alleges the two illegally concealed that Brocade was awarding "in the money" grants — or options that already had value when they were given, thus requiring the company to incur compensation expenses.