Former Brocade Communications Systems Inc. CEO Gregory Reyes became the first CEO charged in American probe of illegal backdating and other manipulation of employee stock option grants.

Mr. Reyes, 43, ousted as head of the Silicon Valley maker of computer equipment in January 2005 after an earnings restatement, was charged with securities fraud in a criminal complaint filed yesterday in San Francisco federal court. Also charged was ex-human resources vice president Stephanie Jensen. They were sued by the Securities and Exchange Commission along with former Brocade’s chief financial officer, Antonio Canova.

The criminal and civil allegations are the first in the biggest federal investigation of corporate wrongdoing since an inquiry into improper mutual-fund trading three years ago led to $4.3 billion in penalties. More than 66 companies are conducting internal inquiries or are under federal investigation. SEC Chairman Christopher Cox said yesterday that his agency is investigating more than 80 companies in the matter.

“This is the tip of the iceberg,” the head of the white-collar criminal defense practice at Baker Hostetler in New York, George Stamboulidis, said. “I think it is highly likely that more executives will be charged.”

Mr. Reyes’s lawyer Richard Marmaro rejected the government’s charges, saying his client never profited from backdating.

“Reyes is not even alleged to have granted himself any of the options at issue in the case, nor is there even an allegation that he made any money through the alleged option irregularities,” Mr. Marmaro said in a statement. “All he did was what his board authorized him to do.”

Mr. Reyes said that he had urged prosecutors during negotiations before yesterday not to prosecute his client.

“The prosecutors were never interested in the facts of this case as far as Mr. Reyes is concerned,” he said.”They have their own agenda.”

Jan Little, a lawyer for Ms. Jensen, 48, of Los Altos, Calif., didn’t return a call seeking comment.