Mercury interactive backdating
Federal prosecutors obtained an indictment against Abrams in 2008 for income tax evasion and aiding in the preparation of false tax returns.Hewlett-Packard Co () bought Mercury Interactive in 2006 for .6 billion.The government intends to file a new indictment in connection with the guilty plea, the filing said. Attorney’s Office in San Francisco declined to comment, as did an attorney for Abrams.
From 2000 until its HP acquisition in 2006, Mercury purchased several software companies: From 4 January 2006 until its acquisition by Hewlett-Packard, Mercury Interactive was traded via the Pink Sheets as a result of being delisted from the NASDAQ due to noncompliance with filing requirements.On 3 January 2006, Mercury missed a second deadline for restating its financials, leading to the delisting.Chief Executive Officer Amnon Landan, Chief Financial Officer Douglas Smith, and General Counsel Susan Skaer resigned in November 2005 after a special committee at the company found that they benefited from a program to favorably price option grants.The SEC claimed he earned more than million from his fraudulent conduct. Donlan, the former stock options administrator at Wireless Facilities Inc., pleaded guilty to federal fraud and tax charges relating to stock he fraudulently obtained from WFI during his employment.In the plea agreement, Donlan admitted that between November 2002 and November 2003 he used his position as WFI’s stock option administrator to issue without authorization 728,229 shares of WFI stock to a brokerage account he controlled, and that he sold the stock for a net gain of ,252,794.