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Another Former Brocade Executive Charged with Fraud

The U.S. Securities and Exchange Commission on Friday filed fraud charges against the former chief financial officer of Brocade Communications Systems, saying he disregarded indications other executives were backdating stock options.

The SEC said Michael Byrd learned of instances in which Brocade's former CEO and others were backdating options for certain people, but did not ensure the company properly accounted for the expenses and disclosed them to investors.

A U.S. jury convicted the former Brocade CEO Gregory Reyes earlier this month in the government's first criminal trial of options backdating.

Brocade has already agreed to pay a $7 million civil penalty to settle charges of fraudulent stock option backdating.

Shares of Brocade, a data storage technology concern, rose modestly on Friday.

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