U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21412 / February 12, 2010
Securities and Exchange Commission v. Michael J. Byrd, Case No. 3:07-cv-04223-CRB (N.D. Cal.)
Court Enters Final Judgment Settling Action Against Michael J. Byrd
The Securities and Exchange Commission announced that on February 3, 2010, the Honorable Charles R. Breyer, United States District Judge for the Northern District of California, entered Final Judgment as to Michael J. Byrd, based on his Consent submitted in order to settle the Commission's action against him.
The Final Judgment against Byrd, which he agreed to without admitting or denying the allegations against him, provides that he is enjoined from violating Sections 17(a)(2) and (3) of the Securities Act of 1933 and Sections 13(b)(5) and 16(a) of the Securities Exchange Act of 1934, and Rules 13b2-1, 13b2-2 and 16a-3, and from aiding and abetting future violations of Sections 13(a), 13(b)(2)(A) and (B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13. Byrd is further ordered to pay a civil penalty of $175,000 and to pay disgorgement, plus prejudgment interest, of $249,843.
The Commission's complaint against Byrd, the former chief financial officer and then chief operating officer of Brocade Communications Systems, Inc., a San Jose computer networking company, alleged that while Brocade's former CEO was engaged in a years-long fraudulent stock options backdating scheme, Byrd at times received information about certain stock options and should have fully investigated to determine whether Brocade's financial statements accurately reflected the necessary compensation expenses.
For additional information, see Litigation Release No. 20247 (August 17, 2007).