Take-Two founder Ryan Brant pleads guilty

The SEC announced that former CEO of Take-Two Interactive, Ryan Brant, agrees to part with almost US$ 7.3 million in connection to Take-Two’s ongoing stock option scandal.

The amount includes the US$ 6.3 million of settlement money for the civil charges that the SEC has filed against Brant, and another US$ 1 million to New York state and local authorities. Gamespot reports that Brant also pleaded guilty to first-degree felony criminal charges of falsifying business records.

The SEC believes that from 1997 to 2003, Brant granted to himself, and other employees, stock option, and then altered records regarding when the option were granted in the intention to make them profitable to the receiver. The SEC’s civil complaint says that not only was this done without the approval of the board of directors, but that Brant also directed Take-Two employees to prepare false documents to back up the stock option grants.

The amusing part about this story is that Brant already has a track record with the SEC. The commission says that Brant paid US$ 3.6 million to settle with the SEC for his alleged role in a financial fraud case at Take-Two in 2000-2001.

Brant stepped down as chairman and director of Take-Two in March 2004. He left the company in October 2006.

The SEC says that its investigation of the current Take-Two scandal is ongoing. Take-Two has already released results of its own independent investigation into the scandal, and the blame is pinned squarely on Brant.

Via Gamespot

The SEC announced that former CEO of Take-Two Interactive, Ryan Brant, agrees to part with almost US$ 7.3 million in connection to Take-Two’s ongoing stock option scandal.

The amount includes the US$ 6.3 million of settlement money for the civil charges that the SEC has filed against Brant, and another US$ 1 million to New York state and local authorities. Gamespot reports that Brant also pleaded guilty to first-degree felony criminal charges of falsifying business records.

The SEC believes that from 1997 to 2003, Brant granted to himself, and other employees, stock option, and then altered records regarding when the option were granted in the intention to make them profitable to the receiver. The SEC’s civil complaint says that not only was this done without the approval of the board of directors, but that Brant also directed Take-Two employees to prepare false documents to back up the stock option grants.

The amusing part about this story is that Brant already has a track record with the SEC. The commission says that Brant paid US$ 3.6 million to settle with the SEC for his alleged role in a financial fraud case at Take-Two in 2000-2001.

Brant stepped down as chairman and director of Take-Two in March 2004. He left the company in October 2006.

The SEC says that its investigation of the current Take-Two scandal is ongoing. Take-Two has already released results of its own independent investigation into the scandal, and the blame is pinned squarely on Brant.

Via Gamespot