How is it possible to be guilty of the follow on charges but not the key to the case…CONSPIRACY? Wow…if Reyes was judged by his peers this would have been done over in an afternoon. More later….
Archive for March, 2010
Day 17- 4th Day of Deliberations- More notes from the Jury
On March - 26 - 2010
Seems the Jury has some more questions for the Court….stay tuned.
Day 16- 3rd Day of Deliberation- Judge Breyer seems as if he is pushing for verdict….????
On March - 25 - 2010
So Day 4 ends and no verdict.
Day 16- 3rd Day of Deliberations- A few notes from the jury no Verdict yet…
On March - 25 - 2010
So far no verdict from the Jury just a few notes asking for clarification on a few points….will keep on it until they come back in.
Day 15- 2nd Day of Deliberation…no verdict yet.
On March - 24 - 2010
Wonder what the Jurors are talking about? Seems like their may be a few folks looking at the evidence…should be a good think for the Defense.
Day 15 – Jury Deliberation Day 2
On March - 24 - 2010
Still no verdict folks… Are you as anxious as I am?
Day 14: Day 1 of Jury Deliberations- Certain pages from KPMG Exhibit are removed.
On March - 23 - 2010
Today a Stipulation (an agreement) regarding Exhibit 7706 was ordered.
Exhibit 7706 pertained to information about KPMG.
In order to protect the confidentiality of certain KPMG information, Greg Reyes, the Prosecution & KPMG ( non-party) all agree to remove from the record, all pages from Exhibit 7706 except pages 1, 2, 13, 14, & 15.
Day 14: Day One of Jury Deliberation
On March - 23 - 2010
The Deliberations officially commenced today.
The Jury will be in insolation until they come to a verdict.
I really hope the jury understands how significant this process is, and they are able to see through all of the Prosecution’s fallacies.
Day 14: Day 1 of Jury Deliberations- Jury has been “sequestered.”
On March - 23 - 2010
The jury was officially “sequestered” by the United States Marshal during their deliberations today.
Sequestering involves isolation of jurors outside of court proceedings, disallowing any external contact.
This process is usually taken only for high profile cases, where the contact with the outside might prejudice the jury’s verdict.
Day 13: Def Atty Neal- Reyes only exercised 0.3% of his shares!
On March - 22 - 2010
In the Prosecution’s closing argument, they stated how Greg Reyes was issued 13 million stock option shares. However what they failed to mention, and Atty Neal did, was that Greg Reyes exercised only 0.3% of them!
Out of 13 million, he only exercised 40,00 total!
Prosecution, stop leaving out the important facts!
Day 13: Def Atty Neal- Brocade’s success was because of Greg Reyes.
On March - 22 - 2010
Atty Neal reminded the jury that although Greg Reyes is a defendant in this case, they should not allow the case to forget that Brocade was, and still is a very successful company.
This success was due to Greg Reyes. In his 6 years at Brocade, he increased the revenue from 24 million to 596 million. He built a great company, and Brocade’s growth and success was primarily because of Reyes’ leadership.
Day 13 – Def. Atty. Neal – Closing arguments
On March - 22 - 2010
Neal talked about the “Dirty Dozen” today and I loved it. It was a list of 12 things (witnesses or documents) that have been distorted by the government throughout the trial, and I couldn’t agree more. Of the “Dirty Dozen” topics such as the Beyer testimony, Reyes granting options to himself, Craig Martin’s story, FAS 123 footnotes, Cudgma’s options, Cuevas and Lee’s testimonies, to name a few.
Day 13 – Def. Atty. Neal – Closing arguments
On March - 22 - 2010
Def. Atty. Neal stated that Craig Martin’s (prosecution’s witness) investigation was bias, and I agree with him.
1. Failed to collect certain critical documents
2. Failed to interview some crucial people at Brocade
3. Paid off and relied on a discharged employee
4. Allowed Sonsini to determine what documents were given to the government
Day 13- Closing Arguments Completed- Jury Instructions in the am
On March - 22 - 2010
Closing arguments are done. Jury instructions in the am then its in the Jury’s hands.
Day 13: Def Atty Neal- What about the Audit Committiee?
On March - 22 - 2010
Atty Neal points out how the Government also failed to discuss the role of the Audit Committee and how they were ultimately responsible for what is disclosed in financial statements. The Audit Committee also knew of the backdating; They in fact authorized backdated stocks to themselves!
Seems like there are so many players in the game, but Greg Reyes is the one being called out..
Day 13: Def Atty Neal- Investors weren’t misled!
On March - 22 - 2010
Prosecution needed to show that the information in the APB 25 was material to investors, and therefore investors were misled by Brocade’s 10 K forms.
However, the Prosecution failed to present any witness to prove that. The only 2 investors that did testify stated that they did not use the 10 k when making investing decisions.
Day 13: Def Atty Neal-
On March - 22 - 2010
Atty Neal gave his own instructions to the jury to remind them that it is not illegal to backdate options, or even for failing to apply accounting rules.
If it is not illegal for these things, how can there be 10 counts of crimes against him?!
Day 13: Def Atty Neal- No Witness Understood APB25, why should Reyes?
On March - 22 - 2010
Atty Neal critiques the Prosecution, and how they did not present any witnesses who could explain details of APB 25.
The Govt is so quick to point the finger at Greg Reyes for not applying APB 25 standard, when they cannot even find one witness who can testify to understanding the standard!
Day 13 – Pros. Reeves – Rebuttal
On March - 22 - 2010
Reeves states that in deed APB 25 was discredited. However, he states that tech companies like Brocade did everything in their power to keep APB 25 because FAS 123 would hurt their earnings, performance, and stock price. Well then why did Reyes and Brocade use FAS 123 throughout the 2000-2004 periods?
Day 13 – Pros. Reeves – Rebuttal
On March - 22 - 2010
Of the points Reeves made in his rebuttal he stated that Reyes lied in the Craig Martin interview. He referred to emails between Reyes and Bidzos where Reyes stated that backdating is in fact illegal. Well what he did not reveal to the jury, the most critical part, the subject of those emails, Section 16 Officers. This is when it is actually illegal to backdate because the grants need to be reported to the SEC within 48 hours. Well Reyes, new this, reported appropriately, and broke no laws.
