Two Former Take-Two Execs Plead Guilty in Backdating - TheStreet

Two Former Take-Two Execs Plead Guilty in Backdating

The pleas are for falsifying business records in a wider options-backdating probe.
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Two former executives of

Take-Two Interactive Software

(TTWO) - Get Report

have pleaded guilty to falsifying business records in connection with stock option backdating, according to published reports.

Kenneth Selterman, the company's former general counsel, and ex-Chief Accounting Officer Patti Tay each pleaded guilty to a single misdemeanor count in New York State Supreme Court in Manhattan, according to

The Wall Street Journal

. They follow former CEO Ryan Brant, who also

pleaded guilty to backdating-related charges in February. He also agreed to pay $6.3 million to settle civil charges brought by the

Securities and Exchange Commission

.

The maker of popular video games such as

Grand Theft Auto

, Take-Two last year formed a special investigation committee to probe alleged backdating. In January,

the committee found that Brant "controlled and dominated" the stock option grant process, leading to a pattern of backdating options between April 1997 and August 2003. Take-Two said that during that period, the company failed to comply with its stock option plans and did not maintain adequate control and compliance procedures for option grants, resulting in a "significant" number of options being backdated.

The probe cleared current management, including CEO Paul Eibeler and CFO Karl Winters.

Seven people have now been convicted in the wider backdating probe, which has touched more than 140 companies, the

Journal

reported. Other businesses caught up in the probe include

Apple

(AAPL) - Get Report

and

Marvell Technology

(MRVL) - Get Report

.

Take-Two shares were trading down 29 cents to $20.14 in afternoon trading.