Real Time Media

I can’t believe the Mercury News is “supposed” to be covering the biggest backdating case in HISTORY …yet when the Prosecution is caught again misleading the jury they are not on it?

Instead the Merc pulls the story from Bloomberg and doesn’t even mention the issue in their Daily or on-line publications….WOW!!!

Tech Ticker

Mercury News wire services
Posted: 03/10/2010 04:35:07 PM PST
Updated: 03/10/2010 07:51:28 PM PST

Brocade

Mistrial sought

Lawyers for former Brocade Communications Systems CEO Greg Reyes asked a federal judge to declare a mistrial in his stock-options backdating case, saying a prosecution witness gave false testimony. A former member of San Jose-based Brocade’s human-resources department testified March 1 at Reyes’ trial that the stock options granting process at his former employer, KLA-Tencor, didn’t involve “look-back pricing” that was used at Brocade, Reyes’ lawyers said in a filing Wednesday in federal court in San Francisco. San Jose-based KLA-Tencor restated financial results in 2006 and was sued by securities regulators in 2007 because it backdated stock option grants, the filing said. “There is no doubt that the government knows” that two KLA-Tencor grants discussed by the witness “were backdated,” Neal Stephens, an attorney for Reyes, said in the filing.

— Bloomberg News

Seems the Prosecution has a problem with more testimony.
Check this out:

Brocade

Mistrial sought….wow….

Lawyers for former Brocade Communications Systems CEO Greg Reyes asked a federal judge to declare a mistrial in his stock-options backdating case, saying a prosecution witness gave false testimony. A former member of San Jose-based Brocade’s human-resources department testified March 1 at Reyes’ trial that the stock options granting process at his former employer, KLA-Tencor, didn’t involve “look-back pricing” that was used at Brocade, Reyes’ lawyers said in a filing Wednesday in federal court in San Francisco. San Jose-based KLA-Tencor restated financial results in 2006 and was sued by securities regulators in 2007 because it backdated stock option grants, the filing said. “There is no doubt that the government knows” that two KLA-Tencor grants discussed by the witness “were backdated,” Neal Stephens, an attorney for Reyes, said in the filing.

— Bloomberg News

The Prosecution has gone to far this time. They misled the jury that you could not issue in-the-money options by highlighting a different part of the 10k when in reality you could and Brocade did.

2nd- the Govt made reference to an attachment that did not exist with a meeting notification and tried to establish Mr. Reyes understood the implications of APB 25 vs. FAS 123R as evidenced by an attachment that wasn’t attached and also mis-marked.

WOW…lets stick to the facts…and REAL EVIDENCE. Is this another mistake like in the first proceeding?…I guess I am still a newbie to the process.

Judge helps make defenses point on the worthless effect of the Fidelity Stock Value listing document presented by the Prosecution. Pros. Reeves speaking style is off…not sure if he thinks the Court is slow or if its his speaking style. Either way seems like he is talking to middle schoolers.

Sticking point on in-the-money options….Fidelity never voted for these types of plans.

We held onto this post until we could review our notes and prior case info on-line. It appears in our opinion as if the Prosecution was trying to mislead the jury. They stated Reyes was able to backdate and issue his own options based on his name being on a schedule. When in REALITY the Board of Directors was responsible for picking the date, choosing the # of options and signing off on the grant itself. This is a big are you KIDDING me moment. The GOVT has a responsibility to be certain any evidence or theory they produce should be factual….wow not sure what the Defense should do about this…scary.

As I walked into the courtroom today I noticed the governments prosecutor Adam Reeves on the side of the defendant acting every bit the schoolyard bully. I only overheard bits and pieces but the looks of disgust and the prosecution team laughing as he walked away told me everything.

Tgain the question of Weaver hearing Greg Reyes say “it’s not illegal if you don’t get caught” comes into question. She claimed that she was was intimidated by Reyes and so she didn’t tell anyone at the company. Upon cross examination she again admitted she had no idea what subject in particular he was talking about.

Brocade made AMPLE disclosures to FAS123, so is it valid to say that “there was a failure to disclose” ??? I think not.  Thank you Atty Stephen Neal for clearing up Adam Reeve’s invalid statement.

In Adam Reeves opening statements he came off theatrical, talking slowly and emphasizing his main points,  and patronizing to the jury.