The U.S. Securities and Exchange Commission has reached a settlement with the co-chief executive officers of Research In Motion Ltd. and two other company employees on charges of backdating employee stock options, the regulator said Tuesday.

The SEC’s complaint alleged that RIM, its former chief financial fficer Dennis Kavelman, former vp of finance Angelo Loberto, and co-CEO James Balsillie and Mike Lazaridis illegally granted undisclosed, in-the-money options to RIM executives and employees by backdating millions of stock options over an eight-year period from 1998 through 2006.

“As alleged in our complaint, RIM and its highest level executives engaged in widespread backdating of options which provided them and other employees with millions of dollars in undisclosed compensation,” said Linda Chatman Thomsen, director of the SEC’s Division of Enforcement. “This enforcement action underscores the SEC’s resolve to assure full and accurate disclosure to U.S. investors by foreign issuers.”

The SEC’s complaint alleges that the defendants made false and misleading disclosures about how RIM priced and accounted for options. In addition, according to the complaint, the backdating violated the terms of RIM’s stock option plan and a listing requirement of the Toronto Stock Exchange.

The SEC said all defendants agreed to settle the matter, without admitting or denying the allegations in the complaint.

RIM consented to an order permanently enjoining it from violating the antifraud, reporting, books and records and internal controls provisions of the U.S. federal securities laws. The SEC said the settlement with RIM takes into account the company’s cooperation during the investigation.

The largest penalties will be paid by former CFO Dennis Kavelman, who agreed to pay US$500,000 and be barred from acting as a director or officer of a public company in the United States for five years. Former vice-president of finance Angelo Loberto will pay US$425,000 and also be barred from acting as a director or officer for five years.

Co-CEO Jim Balsillie will pay a US$350,000 penalty and co-CEO Mike Lazaridis will pay US$150,000.

On Feb. 5, the Ontario Securities Commission brought a related settled action against RIM, Balsillie, Lazaridis, Kavelman, Loberto and certain other directors which included the total payment of $76.85 million and other sanctions.

http://www.sec.gov/news/press/2009/2009-27.htm