Daily Dispatch: Backdating Conviction, Apple, Microsoft, and Fidelity

Gregory Reyes became the first CEO convicted of criminal charges related to stock option backdating. The former CEO of Brocade Communications Systems was found guilty on all10 charges and faces up to 20 years in jail. Reyes's case sets a precedent not only for backdating-related convictions, but also for the motive the government needs to prove. Reyes did not personally benefit from the backdating but instead used it to lure an employee to Brocade.

Today, Apple announced its first update to its iMac line of desktop computers in nearly a year. The new iMacs come with faster processors and either 20- or 24-inch screens in a slim new aluminum case. Although it didn't come with as much fanfare as the iPhone launch in July, the iMac launch, right before back-to-school season, will strengthen the company's computer sales, which have been growing at two or three times the rate of PCs over the last few quarters.

Microsoft will drop the price of its Xbox 360 gaming console by $50 on August 14, to coincide with the same-day release of Madden NFL '08 and the September release of Microsoft's Halo 3. Plagued with hardware problems that cost Microsoft $1 billion in repairs, the Xbox also faced additional competition when Sony cut the price of its PlayStation 3 by $100 last month. The additional sales generated by the reduced price and Halo 3 may help the company get in the black for the current fiscal year.

Ellyn McColgan, Fidelity Investments' President of Distribution and Operations, resigned today, becoming the fourth executive to resign from the firm this year. Her resignation leaves no clear successor to 77-year-old CEO Edward "Ned" Johnson, who has held the Chairman post since 1977.