U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20989 / April 6, 2009

Securities and Exchange Commission v. Gregory L. Reyes, et al., Case No. 3:06-cv-04435-CRB (N.D. Cal.)

COURT ENTERS FINAL JUDGMENTS SETTLING ACTIONS AGAINST DEFENDANTS ANTONIO CANOVA AND STEPHANIE JENSEN

The Securities and Exchange Commission announced that on April 6, 2009, the Honorable Charles R. Breyer, United States District Judge for the Northern District of California, entered Final Judgments as to defendants Antonio Canova and Stephanie Jensen, based on their respective Consents submitted by each in order to settle the Commission's action against each of them, which was originally filed in July 2006.

The Final Judgment against Canova, 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 Section 13(b)(5) of the Securities Exchange Act of 1934, and Rules 13b2-1, 13b2-2, and 13a-14, 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. Canova is further ordered to pay a civil penalty of $120,000 and to pay disgorgement, plus prejudgment interest, of $249,351. The Final Judgment against Jensen, which she agreed to without admitting or denying the allegations, enjoins her from violating Section 17(a) of the Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act, and Rules 10b-5, 13b2-1 and 13b2-2, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and (B) of the Exchange Act, and Rules 12b-20, 13a-1, and 13a-13. Jensen is also ordered to pay disgorgement, plus prejudgment interest, of $44,416.

The Commission's complaint against Canova and Jensen alleged that each played an important role in the years-long fraudulent stock options backdating scheme, carried out by the former CEO of Brocade Communications Systems, Inc., a San Jose computer networking company.

For additional information, see Litigation Release No. 19768 (July 20, 2006); Litigation Release No. 20137 (May 31, 2007).

http://www.sec.gov/litigation/litreleases/2009/lr20989.htm