By: Cydney Posner

According to the WSJ article today, as widely predicted, two executives--the former CEO and former  vice president of human resources--at Brocade Communications were indicted for fraud today in connection with allegations of option backdating. These indictments are the first in the option backdating scandal. (Thanks to Lori Ploeger for the tip.)  The SEC also filed civil charges, including charges against the former CFO. According to the SEC, the CEO (appointed as a stock option grant committee of one) used his "virtually unchecked authority" to falsify the date on which the grants were made. More detail with respect to the types of conduct at issue in the charges is provided in the second article below from the WSJ.

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