Real Time Media

Seems the Jury has some more questions for the Court….stay tuned.

So Day 4 ends and no verdict.

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.

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.

Closing arguments are done. Jury instructions in the am then its in the Jury’s hands.

Not to many surprises by Pros Reeves…a lot of speculation and a few new theories. Oh yeah, he asked the Jury to ignore Defense Atty Neal’s arguments based on speculation…but not his.

Does this guy write this stuff in a vacuum. I wish I could find the book he pulls these new theories from…scary he is in a position of power.

I am amazed the Govt can make such misleading statements in a rebuttal but that is the process….no wonder Neal spent so much time creating doubt on what the Govt would say….its with the Jury have faith they can see through the smoke…our system does work…we should all pray it does.!!!

I know we are supposed to wait for the Govt’s rebuttal but I felt like clapping. Amazing closing argument. I will recap his long closing later…bottom line the Govt has so many defects with its case its kind of scary the case is still going on.

It will be interesting to see what the Govt says in their 90 minute rebuttal.

Here comes the kitchen sink, get the waiters out, the stories and BS I’m sure will be flyin.

We are on break.

Should be the last bit before the jury deliberates…Tuesday.

Wow…Neal is tough.
I love his 20 questions…I wonder how the Jury will review them?

Once again Defense Atty Neal has established Finance know what was going on. Everyone at Brocade received these options. was not in questions. The assertion that Reyes misled and hid the fact from Finance is….with this one notion the GOVT’s case FALLS APART….think about it.

If Finance knew:
1. No conspiracy then
2. If they understood backdating was going on then ACCT choose to use FAS123 knowingly instead of APB 25.
3. False books and records- the Audit Committee understood what was going on so they did not have a problem with the 10K’s to Reyes signed in GOOD FAITH.

No legs to stand on…so if Finance was so important why not even mention them in your closing? Because you know what they were going to say….they knew…and so the cheap suit they are trying to hand on Reyes begins to unravel.

Break for lunch….

I would seem based on the govt’s closing statements today they would have you believe backdating was illegal and Reyes hid the whole process from the Finance department…wow not true.

The Govt would have you believe that Reyes cashed in backdated options and that is why he concocted up the scheme. When in reality 99.7 % of the options were never cashed in. So all of this for 40K options?

The Govt attempted to show Reyes understood APB25 when all of the Govt witnesses were confused themselves and the accounting boards themselves abolished the standard.

Back to our comments from two weeks ago…why are we here? What did Reyes do except grant options to attract employees. Where are the Govt witnesses to say they didn’t know about this?

I guess I could keep going through the Govt’s case….but why….I am still befuddled why they could assert criminal intent.

Everyone know….accounting elected to reflect that comp charges under FAS 123….hello!!!

BIG NEW FLASH!!!!

CLOSING ARGUMENTS MONDAY March 22, 2010.

Seems like the Jury will begin deliberations on Tuesday.

Wow…lets hope they have seen what we have from the behind the bar.

If they are fair minded folks this should be an acquittal.

There were five motions on the table today for the Judge to decide the Defense did not get the big one a MISTRIAL even though another Govt witness fabricated some of their testimony (BREYER).

Lets see how closing arguments go Monday.

As we are on break and I review the testimony to date a few things stick out:
#1. In order to get a conviction in the first trial the Govt had to LIE. They made statements in closing that they KNEW were fals in order to sway the jury.

#2. The Appeals court over turned the decision with harsh criticism of the Prosecutors.

#3. We are trying a case regarding regarding APB25 that no longer exists because the Accounting Board thought it was to confusing and didn’t do as good a job accounting for unrealized stock options as FAS 123.

#4. The Govt usually tries these types of cases to make an example out of someone when the law is actually in force…in this case the law has been off the books for almost 5 years.

In conclusion…it seems EGO is the only reason to keep spending millions of taxpayers dollars to try a case on law that is half a decade stale…..

Think their is a problem with the judicial system?

Oh yeah, in order to try and win again the Govt put a witness on the stand (Beyer) that lied again…wow…amazing how after 8 years he remembered new facts….good job!

As we wait for Judge Breyer to return from his conference it seems like this case has a lot of holes in it from the Govt’s end.

1. No witness has been able to testify that Greg Reyes told them to do anything.

2. If I recall the Govt’s opening statement they claimed they would be able to show Reyes hid the backdating from the Finance Dept and in turn signed Fraudulent 10k’s as far as we can tell everyone at the firm not only knew but also received backdated options (which is not a crime from our research).

3. Finance did take a COMP CHARGE for the options under FAS 123 but not APB25, which based on the testimony we heard is very complicated and open to interpretation.

4. APB25 was such a mess FASB eliminated it. So we are trying a man for a standard that does not even exist….seems like a waste.

5. As far as the conspiracy no one ha stood up and said Greg told them to do anything. Guilty by hearsay? Wow. Not god.

I’m sure the Jury has seen through all of the contrived testimony…

It’s all back on Monday -3/22/10.

Gregory Reyes’s team has a good case for a mistrial. It seems the Prosecution has once again decided to to and admit inappropriate evidence that they know is false. Seems like a replay of the first trial in someways.

It would be great if the Govt stuck to the facts:
1. Options were backdated
2. No criminal intent was intended or proven
3. Finance DID account for the Comp Charge Expense with FAS 123 instead of APB25
4. Mr Reyes did not make a DIME off of the options.
5. Mr Reyes did not authorize or issue a SINGLE option for himself the BOD did.
6. The Board of Directors received and knew about backdated options, FAS123 and authorized all of the grants in question by confirming them after the external investigation.

Why are we still here? Maybe a witch hunt? Ego’s?

Judge Breyer is out of town at a Judicial Conference.

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

Seems like the Atty’s for both sides had a lot of motions as it relates to the evidence and testimony to work out. A lot of prior exhibits like 1-4 are in dispute as are the Elisabeth Moore Stock Binders….all to be worked out over the break.

One last item it looks like the Govt will read in a few press releases into evidence then the jury will get to go home early on Thursday.

Seems like the last exchange of redirects was a non-story.

I was wondering why the lawsuit was sent in the form of a Draft Complaint and not just filed. Cudgima wanted to strong arm the company to forgive his $1.2M loan…and it seems he negotiated a $500K reduction in order to meet with the “investigating attorneys” all seems fine here…not.