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More corporate shennanigans - backdating stock options

  1. Jul 21, 2006 #1

    Astronuc

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    Staff: Mentor

    Backdating charges filed
    http://marketplace.publicradio.org/shows/2006/07/21/AM200607216.html

    The Department of Justice and the Securities and Exchange Commission have brought the first criminal charges in the expanding stock options backdating probe. John Dimsdale reports.

    Anyone who might have taken options, or if one has received backdate options from one's company, one may wish to follow this story.

    Whether or not 'backdating' is legal or not is still to be resolved. The coverup or failure to disclose the backdating is illegal.

    Companies who have backdated shares or individuals who have received income from such shares may be required to return the money.

    This may belong with the Enron thread. It is a similar topic concerning government regulation and oversight of businesses.
     
  2. jcsd
  3. Jul 24, 2006 #2
    Backdating options is entirely legal. Coverup isn't a legal term. Sarbanes-Oxley places certain disclosure requirements pertaining to options, but the case here concerns disclosed criteria for selecting the strike price and actual selection. Put it simply, this is an alleged case of someone who, in a legal document concerning a securities transaction, falsely claimed they were going to do this and that and receive this and that at such and such time. Aka, good ole'fashioned fraud.
     
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