The former chief executive of Brocade was convicted of securities fraud in the first ever case of criminal options backdating. Gregory Reyes was convicted on ten counts, including fraud, falsified accounting, conspiracy, and falsifying financial statements. He faces up to 20 years in prison for defrauding shareholders between 2000 and 2004 by conspiring to alter the dates on stock options granted to employees and falsifying documents to cover the scheme.

Mr. Reyes's lawyer, Richard Marmaro, issued a statement saying his client was innocent. "We are confident he will ultimately be exonerated. At all times, he acted in the best interests of the employees and shareholders of Brocade," Mr. Marmaro said.