Ex-Brocade Exec Slapped with Jail Time for Backdating Charges

March 20, 2008 (PLANSPONSOR.com) - A federal judge has rejected pleas to spare former Brocade Human Resources chief Stephanie Jensen from serving prison time in connection with a stock option backdating scheme.

The Recorder reported U.S. District Judge Charles Breyer imposed a four-month jail term on Jensen as well as three months in a halfway house, a year of supervised release, and a $1.25 million fine.   According to the news account, prosecutors had requested six to eight months in prison, while Jensen’s attorney, Jan Little, asked for home confinement.

During the sentencing hearing, Breyer spoke about Jensen’s “modest life,” noting how she “never used money in a flamboyant or perhaps inappropriate way.” The judge told her: “Your values are good values, which makes it even sadder that you are here today.”

The Recorder said Breyer stressed the need to send a deterrent message to corporate executives about the importance of keeping honest books and records. A jury convicted Jensen in November of two counts of falsifying books and records (See Options Charges Claim Second Brocade Defendant ).

Brocade’s former chief executive, Gregory Reyes, was sentenced in January to 21 months in prison and fined $15 million after a jury convicted him in August of 10 counts related to backdating (See  Ex-Brocade CEO Gets Fine, Jail Term ).