SEC v. Carl Jasper
The SEC successfully brought suit against Carl Jasper, former CFO of Maxim Integrated, for improperly granting stock options below market price and failing to recognize the required charge in the company's financial statements (also know as "backdating"). The SEC charged that by backdating options, the defendant helped Maxim to conceal millions of dollars in compensation expenses from shareholders.
The Focal Point’s Role
The Focal Point worked with the SEC trial team to develop compelling case themes and illustrate how stock options work and the required expenses for granting "in-the-money" options. Working in the war room, and directly with expert witnesses, The Focal Point team was able to help develop analogies and tutorials to enable the jury to understand the relevant accounting issues and resulting damage to shareholders.
The jury found the defendant liable on eight counts, including fraud, lying to auditors, and aiding false bookeeping. Judge Ware ordered damages of $2.2 million in bonuses, pay, and penalties, and a two-year bar on serving as a director and officer.
US District Court for the Northern District of California (San Jose, CA)
Judge James S. Ware
The Focal Point’s Client
US Securities and Exchange Commission
Mark P. Fickes
Robert S. Leach