Former SafeNet President Indicted on Stock Option Backdating and Conspiracy Charges

By Aaron Poehler

Published on August 09, 2007

Department of Justice Federal Attorney Michael Garcia stated that between 2000 and 2006, Argo awarded herself and other SafeNet employees stock options backdated to appear as if they had been issued while the company’s stock was at a low point, then concealed this activity from SafeNet shareholders.

Argo resigned from SafeNet last October after results of an internal probe into stock option manipulation at the company were announced. In the wake of the scandal, the SafeNet board of directors ended public ownership of the company and placed SafeNet up for sale, eventually selling the company to private equity firm Vector Capital in April of this year.

Argo has pleaded not guilty to all charges; her trial is set for December. If convicted, Argo faces a maximum of 25 years imprisonment and fines on each count totaling $250,000 or twice the cost of the fraud, whichever is greater.

Comment on this article →