As CEO of Brocade Communications, Reyes sold SAN (Storage Area Network) infrastructure to a number of companies, including IBM, EMC Corp., Compaq, Dell, NEC, and HP.During Reyes's time as CEO, Brocade was the largest manufacturer of networking equipment that provides data storage in the world.Law360 (August 17, 2007, AM EDT) -- Federal regulators have accused another former Brocade Communications Systems Inc. Securities and Exchange Commission claimed on Friday that Michael Byrd, Brocade’s chief financial officer from 1999 to 2001, was aware that the company was not properly accounting for certain options awards to employees, but omitted the compensation expenses incurred from the grants in the financial reports disclosed to investors. executive of fraud for allegedly helping to conceal the computer storage networking company’s backdating of stock options grants. 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.Prosecutors said Reyes intentionally kept compensation expenses associated with Brocade's options awards off the company's books.
Backdating is usually disallowed and even can be illegal or fraudulent based on the situation.
Gregory Reyes (born September 1, 1962) is an American businessman who most recently served as the Chief Executive Officer (CEO) for Brocade Communications.
He is the first person to have been convicted for fraudulent backdating of corporate stock options.
Reyes began working full-time position at Convergent while taking evening classes in order to complete his degree.
After obtaining his degree, Reyes became an OEM sales representative for Convergent, then left to become Vice President of Sales and Support at Banyan Systems, a networking and data communications software firm.
Reyes was seen as an important test of whether a jury considers it a crime deserving of jail time.