Backdating Case Brings a Prison Term
The New York Times, January 29, 2008
A former Chief Financial Officer of SafeNet was sentenced to six months in prison and fined one million dollars for securities fraud in connection with an options backdating case. Carole D. Argo plead guilty, admitting that she backdated millions of dollars’ worth of employee stock option grants at the company.
According to federal prosecutors, Argo also worked with other individuals to routinely tamper with option grants in order to make it look like they issued when the company’s stock price was at a periodic low point.
With all the electronic documents floating around the world these days, it’s not surprising to know that things have gotten so far out of hand that stock option grants are now being maliciously altered. And in this case, it was the company’s CFO who committed the crime – how unsettling is that idea?