IRS Joins Stock Options Task Force
By Colleen Taylor -- EDN, September 8, 2006
The Internal Revenue Service (IRS) has signed on to aid the local stock options backdating task force in Silicon Valley formed by U.S. Attorney for Northern California Kevin V. Ryan. The IRS is adding a total of four new members to the team, which is also comprised of members of the U.S. Attorney's Office and the FBI.
The task force was assembled by the U.S. Attorney in July to investigate stock option backdating allegations of companies and individuals in Silicon Valley.
Click herefor more news on the unfolding stock option investigation.
"With the recent discoveries of significant fraudulent misconduct in connection with backdating of stock options, IRS-CI will work to help ensure both the companies and executives involved in such illegal activity are in compliance with the tax laws and where we can assist our law enforcement partners and the U. S. Attorneys Office in enforcing the money laundering statutes," Roger With, IRS-CI special agent in charge, said in a statement.
The addition of the IRS to the task force is only the latest evidence that the stock options probe of tech companies in Silicon Valley is hardly slowing down. This week the U.S. Securities and Exchange Commission (SEC) chairman told a Senate panel that the SEC is currently investigating more than 100 companies for stock option backdating—25 percent more than the 80 companies the commission disclosed it was investigating in July.
Ryan’s task force has not disclosed the number of companies it is currently investigating. The office brought charges against two former Brocade Communications Systems Inc. execs in July, for stock options-related issues.
