Turbulence Seen in SEC's Crackdown

Defense attorneys say they've thought for some time that the SEC has been overzealous in pursuing high-ranking executives suspected of white-collar crime. But they had little to back their hunch until a former technology executive was found innocent last week of securities fraud. A federal jury in San Jose took just five hours to acquit former Legato Systems Inc. Executive Vice President David Malmstedt of six fraud charges.

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