Conviction in backdating trial

Former Brocade Communications Systems CEO Gregory Reyes becomes the first CEO to be convicted by a jury as part of a broad crackdown on the backdating of stock options - and of course it will raise questions about ongoing federal investogations, some involving local companies. "Total shock,'' said defense attorney Richard Marmaro when asked for reaction. You can understand why: the government was believed to have a weak case - so much so that U.S. District Judge Charles Breyer, who presided over the SF trial, questioned whether prosecutors had presented enough evidence to prove that Reyes knew enough about accounting rules to knowingly engage in backdating. At times, it seemed that Breyer was close to dismissing the charges. So we'll have to see. Reyes faces as much as 20 years in prison for the most serious charges (though it's hard to imagine he would get anywhere close to that). Sentencing is set for Nov. 21. (Bloomberg News)