In the recent decision of SEC v. Jasper, the U.S. Court of Appeals for the Ninth Circuit affirmed the jury’s verdict against Carl Jasper, former chief financial officer of Maxim Integrated Products Inc., finding that he was civilly liable on eight counts of violating the securities laws in issuing backdated stock options without first properly expensing them. After a seven-day jury trial, the jury found against Jasper on eight of 11 counts. As a result, the district court permanently enjoined Jasper from future violations of certain securities laws, barred him from serving as an officer or director of a publicly traded company for two years, and imposed a civil penalty of $360,000. In addition, under §304 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. §7243), the district court ordered Jasper to reimburse Maxim for bonuses and profits from the sale of Maxim stock that Jasper had received during the period he certified false financial statements, which amounted to approximately $1.8 million.
In affirming the jury’s verdict, the Ninth Circuit held that the district court had not committed reversible error in any of its three evidentiary rulings being challenged on appeal.
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