Brant faces up to four years in prison for falsifying business records.

"I am deeply sorry for my role in the inappropriate manner Take-Two granted incentive stock options," Brant said in a statement. "I accept responsibility for my actions, and apologize to the company's shareholders," said Brant, who in 1993 founded the company best known for the blockbuster "Grand Theft Auto" urban-action game from its Rockstar Games studio.

Brant agreed to pay $6.3 million to settle the civil charges and $1 million in penalties related to the criminal case.

He did not admit or deny wrongdoing in the civil case, and as part of the settlement he agreed to a permanent bar on holding top offices at publicly held companies.

The SEC and the Manhattan District Attorney's office said the investigation into the company were continuing.

Sentencing for Brant is set for Aug. 1 Brian Crecente

NEW YORK, Feb 14 (Reuters) - Ryan Brant, the former chief executive of video game publisher Take-Two Interactive Software Inc.(TTWO.O: Quote, Profile , Research), pleaded guilty on Wednesday to criminal charges related to backdating of stock options.

Brant pleaded guilty in New York State Supreme Court to falsifying business records, a charge that carries a punishment of up to four years in prison. Separately, he also settled a civil action brought by the U.S. Securities and Exchange Commission.

"I am deeply sorry for my role in the inappropriate manner Take-Two granted incentive stock options," Brant said in a statement. "I accept responsibility for my actions, and apologize to the company's shareholders," said Brant, who in 1993 founded the company best known for the blockbuster "Grand Theft Auto" urban-action game from its Rockstar Games studio.

Brant agreed to pay $6.3 million to settle the civil charges and $1 million in penalties related to the criminal case.

He did not admit or deny wrongdoing in the civil case, and as part of the settlement he agreed to a permanent bar on holding top offices at publicly held companies.

The SEC said in a statement that Brant had agreed to settle charges that he "enriched himself and others" by granting undisclosed options to himself and other company employees. It did not provide details about the other individuals.

Both the SEC and the Manhattan District Attorney's office said their investigations were continuing.

More than 170 companies have been investigated by U.S. authorities or have conducted internal inquiries into possible manipulation of stock option grant dates. Some companies are accused of backdating grant dates to days when the share price was lower, giving the recipient the opportunity to reap extra profit.

Backdating is not in itself illegal, as long as the practice has been properly disclosed to shareholders and fully accounted for.

The Justice Department has filed criminal charges relating to alleged backdating against former executives at Comverse Technology Inc. (CMVT.PK: Quote, Profile , Research) and Brocade Communications Systems Inc.

Brant resigned his nonexecutive post at Take-Two in October. He was CEO until February 2001 and chairman until March 2004.

"If people are to have confidence in our financial markets, it is critical that public companies report their financial condition accurately," Manhattan District Attorney Robert Morgenthau said in a statement following the guilty plea.

Sentencing was set for Aug. 1.

Take-Two said on Jan. 22 that a review of its past option grants had found that Brant had engaged in a pattern and practice of backdating options between April 1997 and August 2003.

The company said in an SEC filing that the review showed Take-Two failed in many cases to comply with the terms of its option plans and did not have adequate compliance procedures.

In June 2005, Brant and three other former Take-Two executives paid $14 million to settle a SEC lawsuit, closing a nearly four-year investigation into alleged fraudulent accounting practices at the company.

Ex-Take-Two CEO pleads guilty to options charges [Reuters]

By: Brian Crecente (Art by Fahey)

Last week's flurry of activity surrounding Jack and the Florida Bar isn't something new. It seems that the two have had quite a number of run-ins over the years.

Way back in 2005, intrigued by Jack's petulant attitude and seemingly unprofessional behavior in the court room and in front of television cameras, I contacted the bar to see what sorts of things that had on file about MR. T.

I only received two complaints back because under their interpretation of state law they argued they only had to provide me with closed cases. I've never really had a reason to post about them, but in light of this latest investigation I feel they could make for good reading material. Hit the jump for summaries of both cases as well as all of the scanned documents from the cases, for your reading pleasure. I've also gotten my paws on a PDF of the most recent complaint, all 40 pages of it. Brian Crecente

The Florida Bar v. John Bruce Thompson

Case No: SC07-80
Florida Bar File Nos: 2005-70,305; 2005-71,125; 2006-70,570;2006-70,766;2006-70,909
Date: 2006
Outcome: Still proceeding.
Summary: This case is about a number of alleged infractions on Thompson's part, in a number of different cases, but most of them dealt with his deft touch in an Alabama civil case.
After being allowed to represent the plaintiffs in an Alabama civil case surrounding the murder of two police officers and a radio dispatcher in Fayette, the court found that Thompson filed a complaint before getting that permission. The judge also found that Thompson spoke about the case outside of the court, sent letters to the court and "engaged in conduct that adversely reflects on his fitness to practice law." That included harassment, lying and intimidation, according to the judge.
Best Thompsonism: In a letter to the judge: "I was in your courtroom Judge, and I felt like Alice in Wonderland must have felt. It's okay for Mr. Smith to act like a Mafia thug, but it's unethical for me to point out the thuggery. What in Hell, literally, is going on here? This is utter, utter nonsense, and you're watching it, Judge."
Names the judge was called: knucklhead, bizarre, childish, improper, a player, a witness, an out-of-control tyrant
Names he called himself: A slithering snake, a pig slop
The full record: Download PDF here.

The Florida Bar v. John Bruce Thompson

Case No: None
Florida Bar File Nos: 2005-71,051
Date: May, 5, 2005
Outcome: No probable cause found because the Supreme Court of Ohio issued a finding that there was no evidence that Thompson engaged in the practice of law in their state.
Summary: In March, 2005, an Adams County, Ohio Special Assistant Prosecuting Attorney filed a complaint with the Florida Bar alleging that Thompson tried to inject himself in a case there despite not having an Ohio-license and being told by the judge he couldn't. He also continued to tell people he was representing the family in the case, despite the order, according to the allegation.
The Ohio attorney goes on to detail a laundry list of accusations including seeking publicity in the trial, lying, being disrespectful, being unprofessional and sending improper letters to others involved in the case.
Despite the fact that the Ohio State Supreme Court, and the judge presiding over the case, found that Thompson never practiced any law in the case, many publications, including Game Politics, Gamespot and the Columbus Dispatch reported that he would represent the family of Gail Knisley, shot and killed in November 2003 by Charles A. McCoy Jr., an avid gamer, while she drove on an interstate in the Columbus area.
Best Thompsonism: In a letter to the the Florida Bar's chief branch discipline counsel: "You can see in the correspondence the three cases in Ohio that prove I was no more practicing law in Ohio than I was playing centerfield for the Cleveland Indians."
...
"Maybe he can conjure up some kind of cause of action against Ohio-based Bob Evans Farm Sausage for my illicit use of ham on my fists. This is the first time I can recall a Bar complaint that brings pigs into the discussion."
Names he calls others: a liar, thin-skinned, big fish in a little pond, blind, unprofessional, childish, ham-fisted.
Names he called himself: A center fielder for the Cleveland Indians, illegal user of... hams... on his... fists?
The full record: Click on images for the full-sized page.

The Florida Bar v. John Bruce Thompson

Case No: 78,765 and 79,339
Florida Bar File Nos: 89-71,062;89-71,416
Date: Oct. 1, 1992
Outcome: Guilty plea. Public reprimand for professional misconduct and $3,000 for costs.
Summary: This record was on the verge of being deep-sixed when I rescued it from the Florida Bar. Unfortunately, it is very light on details. All I can gather is that Thompson was accused of, and later admitted to, trying to get someone to hire him as a lawyer after the person already had one. He also admits to not doing an adequate pre-filing investigation in an unnamed case.
Best Thompsonism: Document is just a summary and totally lacking in quotes.
Names the judge was called: Document is just a summary and totally lacking in quotes.
Names he called himself: Document is just a summary and totally lacking in quotes.
The full record: Click on images for the full-sized page.

Reuters is reporting that THQ has cleared itself of stock options fraud.

The company appointed a special, independent investigation to look into its stock options granting practices and today they reported that they found "no evidence of fraud or misconduct."

The story is a real snoozer and chock full of meaningless quarter references and the word "fiscal" is used like a bazillion times, but if you're interested hit the jump for the entire Reuters story. Brian Crecente

NEW YORK (Reuters) - THQ Inc. (THQI.O) said an independent investigation of its stock options granting practices found no evidence of fraud, but the video game maker will record an $11 million non-cash charge for incorrect measurement dates.

A special committee appointed by the board found "no evidence of fraud or misconduct," the company said on Tuesday.

It identified instances in which the company "misapplied GAAP by using incorrect measurement dates for financial accounting and reporting purposes on a number of occasions."

The $11 million after-tax charge covers the period of January 1, 1996 to March 31, 2006, THQ said in a statement.

The adjustments, after-tax for fiscal 2007, were immaterial and will be reflected in the company's quarterly report for the period ended September 30, 2006, THQ said.

For each of the 2006, 2005 and 2004 fiscal years, the adjustments were about $2 million and will be reflected in the company's amended annual report for the fiscal year ended March 31, 2006, THQ said.

The information in the reports for the fiscal years 2002 to 2006 and the quarters in fiscal 2006 and 2005 should no longer be relied upon, the company also said.

The committee recommended ways to improve the company's procedures for granting and administering stock options, which the board adopted and the company is implementing, THQ said.

It also said the company informed the U.S. Securities and Exchange Commission of the committee's findings and is continuing to work with the SEC.

THQ expects to file its March 31, 2006 10-K/A and its September 30, 2006 10-Q with the SEC by January 19. Once it makes those filings, it believes it will regain compliance with the Nasdaq stock market's listing requirements, the company said.

THQ finds no options fraud, will restate [Reuters]