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Last week the Do J brought criminal charges against two Brocade Communications Systems executives, while the SEC filed a civil suit against the same two and the CFO.

As expected, the charges focused on backdating stock options by doctoring employment documents, neglecting to record the stock-option expense on the company’s books, and misleading investors.

At most that you wrote the check back then, (which means nothing...you wrote it and put it in the desk drawer..don't get any credit for that). I mean, why would you bother...doesn't mean or indicate you PAID back then.

I mean, why would you bother...doesn't mean or indicate you PAID back then.

If your backdated claim is approved, you will be able to receive benefits from a certain date in the past.

For example, if a seller had sold his house in December then the seller could have taken advantage of certain tax benefits.

However, he only realizes this in January and so wishes to backdate the document to December.

My father (who was also a lawyer) used to love telling a story about how he was able to triumphantly prove to the court that a yacht charter was backdated by showing the stamps which had been used to pay the nominal 15¢ stamp duty were in fact first issued by the post office some four months after the date stated on the face of the document.

However, he rarely adds that he actually ended up losing that trial, which brings us to my second point – even though the law generally deprecates the backdating of documents, the legal consequences of backdating are highly variable.




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