The SEC's complaint alleges that Ontario, Canada-based RIM, its former CFO Dennis Kavelman, former VP of Finance Angelo Loberto, and Co-CEOs James Balsillie and Mike Lazaridis illegally granted undisclosed, in-the-money options to RIM executives and employees by backdating millions of stock options over an eight-year period from 1998 through 2006.
The Securities and Exchange Commission today charged Black Berry maker Research in Motion, Ltd., and four of its senior executives for stock option backdating.That, in turn, means a company’s accounting is incorrect when it is published in quarterly and annual reports.But shipping executives to jail–especially more than one– can have catastrophic consequences for a company that is blindsided by a backdating scandal.This week four of RIM’s [RIMM] top executives settled options backdating cases with the SEC and the OSC, Canada’s securities regulation agency. They’ll also undergo executive reeducation courses in Canada.The Ontario-based cronies have agreed to pay almost 0 million CN in penalties, costs and compensation in Canada, and .2 million USD in penalties and reimbursements in the U. But their actual out-of-pocket cost will end up being closer to 1/10 of that. The other co-CEO, Mike Lazardis, will remain as CEO and company director.