As 4 GCs Fight Backdating Charges, Others at Risk in Mortgage Fraud Cases

Former McAfee general counsel Kent Roberts successfully fought off charges alleging his participation in improper backdating, but four other general counsel are still in the government’s crosshairs.

Meanwhile, at least one expert questions whether general counsel will be at risk in mortgage fraud cases, the National Law Journal reports.

Roberts was acquitted in a criminal trial, while the four general counsel face only civil backdating accusations filed by the Securities and Exchange Commission, according to the NLJ story. They are: Lisa Berry of KLA-Tencor Corp., Susan Skaer of Mercury Interactive, David Dull of Broadcom Corp. and Nancy Richardson of Microtune Inc.

Three other general counsel have settled or pleaded guilty to backdating charges, according to the article.

While the government may be wrapping up backdating cases, general counsel are still at risk—but in another hot-button area of the law, according to Chicago securities lawyer David Porteous of Levenfeld Pearlstein. Now the government will be focusing on the banking sector and fraudulent mortgage-lending cases. Porteous told the NLJ the question will be: What did the lawyers know about fraudulent practices, and when did they know it?