WASHINGTON – The Securities and Exchange Commissionhas more than 100 companies under investigation for "possible fraudulent reporting of stock option grants," SEC Chairman Christopher Cox said Wednesday.
In prepared testimony before the Senate Banking Committee, Cox said the companies are located across the country and include Fortune 500 corporations as well as smaller companies. "They span multiple industry sectors," Cox said, adding that the commission expects more enforcement actions on the matter.
The SEC and federal prosecutors have already charged executives at two high-technology companies, Brocade Communications Systems Inc. and Comverse Technology Inc.. The executives have denied any criminal wrongdoing.
"The SEC's division of enforcement is currently investigating over 100 companies concerning possible fraudulent reporting of stock option grants," Cox said in the testimony.