KLA-Tencor Former CEO Charged With Fraud by SEC
The U.S. Securities and Exchange Commission said on Wednesday that it has charged the former chief executive of KLA-Tencor with fraud for his involvement in a stock options backdating scheme.
The SEC also said it settled charges with the company for its involvement but was not seeking fraud charges or a monetary penalty. The company settled with the SEC without admitting or denying the allegations.
The regulatory agency said that since 1997, KLA concealed more than $200 million in stock option compensation by secretly backdating the grants to avoid reporting the expenses to investors.
Former CEO Kenneth Schroeder repeatedly backdated options between 1999 and 2002, and once in 2005, the SEC said.