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Source:
http://www.boston.com/business/articles/2007/03/01/ex_mcafee_lawyer_pleads_not_guilty/

August 30, 2008 - content has not been altered. Links have been removed.

Ex-McAfee lawyer pleads not guilty

By David Kravets | March 1, 2007

SAN FRANCISCO --McAfee Inc.'s former top lawyer pleaded not guilty Thursday in federal court to charges of stock options tampering in an alleged attempt to enrich himself at the expense of the computer security software maker's shareholders.

A federal grand jury indicted Kent Roberts on Tuesday, nine months after McAfee fired him as its general counsel for improper handling of stock options issued in 2000 when the Santa Clara-based company was still known as Network Associates .

The indictment includes seven criminal counts of fraud alleging Roberts manipulated the values of his stock options to increase his potential windfall from the awards and then falsified records to cover up his misconduct.

Roberts, 50, of Dallas later misled the Securities and Exchange Commission and McAfee's auditors about his misdeeds, the indictment says.

If convicted, Roberts faces up to 20 years in prison and a $5 million fine. He could lose his license to practice law in the two states where he is a registered attorney -- Texas and Missouri.

Roberts told a magistrate he understood the charges and conditions of his release on $1 million bond.

Defense lawyer Stephen Neal said outside court that he was looking forward to a trial, which he said would lead to his client's acquittal.

On Wednesday, the SEC charged Roberts with securities fraud in a civil lawsuit for allegedly altering stock option grant dates to benefit himself and others.

Securities regulators alleged that Roberts changed the date of a February 2000 stock option grant he received from the Santa Clara-based company to boost the potential value of the options by $197,500.

His next scheduled appearance in the criminal case is Monday.

Roberts is the third former executive in the past two weeks to be accused of illegally rigging stock options, joining the former CEO of video game maker Take-Two Interactive Software Inc. and a former senior vice president for the company that owns the online job search site Monster.com .

© Copyright 2007 Associated Press. All rights reserved.

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