Engineered support systems backdating
“Why I Did Not Go To Jail” Michelle (note: her name has been changed) comprehensively understood software accounting, business models, and best practices, and she was beloved by Wall Street in no small part due to her honest and straightforward reporting of her previous company’s business.In my reference checking, at least a dozen investors told me that they made far more money when the numbers disappointed than when the company outperformed, because they trusted Michelle when she said that things were not worse than they appeared and bought on the dips.
Of all the parties who could have been seriously singed in the options back dating law enforcement conflagration ignited by Iowa academic Erik Lie, auditors were left pretty much unscathed.
How did Horowitz, according to his account, avoid jail?
He asked his General Counsel to review an Abrams proposal to advantageously date options.
According to Horowitz: I told “Michelle” that a better stock granting process sounded great, but I needed Jordan Breslow, my General Counsel, to review it before making a decision.
Jordan lived in my hometown of Berkeley and he certainly belonged there.
With hippie sensibilities, Jordan was nearly allergic to corporate politics, showmanship, or any behavior that covered the truth. I said: “That’s all fine and good, but I still need Jordan to review it first.” Jordan came back with an answer that I did not expect: “Ben, I’ve gone over the law six times and there’s no way that this practice is strictly within the bounds of the law Here’s what Mercury Interactive said Sharlene Abrams did when they sued her and the other executives: Abrams was also prosecuted by the SEC and went to jail for the criminal charges related to tax evasion brought by the Department of Justice.