The first case arising from accusations of backdating stock options for executives may be filed by the SEC within a month, according to lawyers familiar with the case who have spoken to CNBC’s Charlie Gasparino. Gasparino's sources say the case will mostly likely be a civil suit against former Brocade Communications CEO Greg Reyes. Apparently the regulators have backed-off from filing criminal charges becase they aren’t confident they can prove criminal intent.
The Securities and Exchange Commission is ready to pull the trigger on its first stock-option backdating case, CNBC has learned.
People at the SEC as well as several defense attorneys representing targets of the wide-ranging probe say that the commission will file its first case within a month. Although there are around 400 cases of backdated stock options that have caught the SEC’s attention, and about 60 under more intense scrutiny, these same people say one case is at the top of the SEC’s list. That case involves Greg Reyes the former high-flying CEO of technology company Brocade Communications.
Options backdating...let the cases begin! [SquawkBlog]