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Take-Two founder pleads guilty

Publisher's former CEO to pay almost $7.3 million to settle charges stemming from stock-option scandal.
By Brendan Sinclair, GameSpot
Posted Feb 14, 2007 2:00 pm PT

Former CEO of Take-Two Interactive, Ryan Brant, has agreed to part with almost $7.3 million in connection to the publisher's ongoing stock option scandal, the Securities and Exchange Commission (SEC) announced today. That sum includes $6.3 million to settle civil charges the SEC filed against him, and another $1 million to New York state and local authorities. Brant also pled guilty to first-degree felony criminal charges of falsifying business records.

One of Take-Two's founders, Brant stepped down as chairman and director of the company in March 2004, assuming the role of vice president of publishing. He left the company in October 2006, after being officially on disability since June. Last month, Take-Two released the results of its independent investigation into the scandal, pinning the blame squarely on Brant.

The SEC believes that from 1997 to 2003, Brant granted stock options to himself and other employees and altered the records regarding when the options were granted in order to make them instantly profitable to the receiver. The civil complaint said that this was done in most cases without the approval of the board of directors but that other Take-Two employees prepared false documents to back up the stock option grants at Brant's direction.

This is not the first time Brant has run afoul of the SEC. According to the commission, he paid $3.6 million to settle with the group for his alleged role in a "massive financial fraud" case at Take-Two in 2000-2001.

As for the current Take-Two scandal, the SEC said its investigation is continuing. With investors perhaps taking this as a sign that the stock option scandal is coming to an end for the publisher, Take-Two shares jumped 8 percent today, closing up $1.61 to $20.97.

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69 Comments

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cjcr_alexandru

Some people don't learn from their first mistake...

Posted Feb 17, 2007 12:22 pm PT
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cenz_is

lolz

Posted Feb 16, 2007 4:47 am PT
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rome_tx

Wouldn't it be ironic if he shared a jail cell with Jack Thompson?

Posted Feb 15, 2007 8:14 pm PT
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Tony-Baxter

Take Two..................years in prison!!

Posted Feb 15, 2007 3:01 pm PT
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nappan

"makemeweak What is with this guy? TWO times he tries to get money illegally and gets fined millions? You'd think he'd have gotten the clue after the first fine. "

Sociopaths are incapable of learning that kind of lesson, and this guy is a classic. He reeks of impulsivity and poor insight into the consequences of his actions. He'd probably make a fantastic politician

Posted Feb 15, 2007 10:43 am PT
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MISTER-PRINCE

Se ferrou!!

Posted Feb 15, 2007 10:29 am PT
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dbeddow

He should be going to jail for that crap.

Posted Feb 15, 2007 10:10 am PT
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makemeweak

What is with this guy? TWO times he tries to get money illegally and gets fined millions? You'd think he'd have gotten the clue after the first fine.

Posted Feb 15, 2007 9:22 am PT
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TRH4469

hes also guilty of car theft, prostitution, murder, procession of narcotics, arson, assault and battery, and also flying airplanes without a license.

Posted Feb 15, 2007 8:40 am PT
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sieg6529

He's not the only one, that's for sure.

Posted Feb 15, 2007 8:16 am PT
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smghottie

Dude its not dishing dirt man. Its not as if they are making this up. Its a true story about how one man is selfish enough to do this, and would compromise his company just to make some extra money. If there is new about the game industry beyond just the games, I'd like to hear about it.

Posted Feb 15, 2007 7:53 am PT
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Autolycus

dum dum dum dum

Posted Feb 15, 2007 7:36 am PT
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bigpimppapa

I AM NOT SURPRISED ONE BIT, WHO IS NEXT SONY CEO'S ?

Posted Feb 15, 2007 7:13 am PT
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chrisdojo

what a fool

Posted Feb 15, 2007 5:36 am PT
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solaris1979

GTA: Take Two Down Story

Posted Feb 15, 2007 5:30 am PT
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Humorguy_basic

Sort of makes you think of the whole PC gaming Industry. Not doing things illeagal of course, but just willing to float near the wind to make an extra buck regardless of the customer. DVD cases so you cannot see the system requirements, pdf manuals to save money then complaining about piracy, 5-15 hour gameplay games taking over from the normal 25-35 average we used to have, working in conjunction with hardware companies making me suspicious of all this constant upgrading requirement, etc, etc.

When the gaming media talks about the gaming market maturing, I think they have to look at the publishers as much as the games themselves!

Posted Feb 15, 2007 5:21 am PT
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epormada

"Another one bites the dust!"

Posted Feb 15, 2007 4:53 am PT
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GuchFairy

haha, dishing dirt? It's something called reality.

Posted Feb 15, 2007 1:01 am PT
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drangel_jam

He plays too much games, especially GTA games. Not good! Bad boy you are!

Posted Feb 14, 2007 11:12 pm PT
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billjacksonn

It's sad to see Gamespot is now dishing dirt on people in the industry. Thanks for working AGAINST the industry Gamespot. Perhaps Gamespot should change their name to "Gamespot Inquirer". Pathetic.

Posted Feb 14, 2007 11:12 pm PT
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anarchicgoth

lol Bgrngod : "GTA made him do it!!"- thats funny dude seriously!

Posted Feb 14, 2007 9:26 pm PT
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Bgrngod

GTA MADE HIM DO IT!!

Posted Feb 14, 2007 8:46 pm PT
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Generic_Dude

That's what you get for using the Free Market as your toilet, you SOB.

Posted Feb 14, 2007 8:10 pm PT
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GhaleonQ

As if I need more reasons to hate Take Two...

Posted Feb 14, 2007 7:48 pm PT
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silentassasin05

meh haha

Posted Feb 14, 2007 7:46 pm PT
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Outlawlaw

he should blame the video games for his wrong doings

Posted Feb 14, 2007 7:31 pm PT
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TryMe01

message: crime does not pay, even if you're making violent games... sad, so sad

Posted Feb 14, 2007 7:10 pm PT
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pcmacro

He was a big influence in GTA3 what do you expect?

lol

Posted Feb 14, 2007 7:10 pm PT
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lzorro

At least he was honest about it

Posted Feb 14, 2007 7:05 pm PT
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RaiKageRyu

Awww, that's too bad.

Posted Feb 14, 2007 6:08 pm PT
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Pete5506

wow!?!?!?!

Posted Feb 14, 2007 5:46 pm PT
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sj420

umbrae that's friggin crazy lol

Posted Feb 14, 2007 5:38 pm PT
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umbracascade

wow, umbrae if your story was true, that's really funny

Posted Feb 14, 2007 4:50 pm PT
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muppen

Pocketmoney

Posted Feb 14, 2007 4:06 pm PT
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drgnstr13

Ooh! Scandalous!

Posted Feb 14, 2007 4:06 pm PT
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Re_ensurer

Wow.

Posted Feb 14, 2007 4:04 pm PT
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JFreezy02

Sounds like Brant should have been in the same cell with Martha Stewart LOL!!

Posted Feb 14, 2007 3:53 pm PT
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umbrae

I have a funny story. Back in the early days of gaming I bought one of the first games by Take Two. I hated it and return it the same week. I went to the Take Two boards on AOL (dont laugh it was a long time ago) and stated my displeasure. I was immediately attacked by a Take Two person on the boards and continually emailed. I was called a thief and many other not-so-PC terms hundreds of times until I complained to AOL's abuse department. This was so bad I contacted the corporate office to complain, only to find out it was Ryan Brant. founder of the company. I NEVER bought a Take Two product after that. Now I have the last laugh. To think _HE_ called _ME_ a criminal.

Posted Feb 14, 2007 3:49 pm PT
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BraindeadRacr

If he can "let money dissapear", he must know how to spell: BUSTED!.

Posted Feb 14, 2007 3:45 pm PT
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MagusMaleficus

Bottom line: powerful men with great wealth get slapped on the wrist and fined. Everybody else goes to jail. Oh, what a wonderful world...

Posted Feb 14, 2007 3:44 pm PT
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blackops67

This just proves my point, the world is full of stupid people and liars.

Posted Feb 14, 2007 3:41 pm PT
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smbius

klactose. You definitely know what you're talking about. I follow the stock market closely and the dark news that comes with it.

I too also read the Wall Street Journal (although very expensive but worth it for investments) and it is really sad, especially in the gaming industry, that a CEO can potentially get out of this mess. This affects the people below the CEO and the games they make since they're less inclined to trust who they work for. It affects their morale and the quality of their work. For those into GTA and the 2K series, take note.

Posted Feb 14, 2007 3:32 pm PT
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drangel_jam

These nuckas are real mafiosos man! No wonder the GTA series have so much flavor! Mo' Street Cred. Yo! That's what's up!

Posted Feb 14, 2007 3:27 pm PT
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klactose

@ pencilpusher69 ... Sorry to inform you, but you are still living in dreamworld. Someone needs to pinch you and wake you up. Yes, with the recent spat of very public corporate crimes, especially the Enron fiasco, it has been more fashionable of late to actually sentence some of these people (the ones in the spotlight) to minimum security facilities.

But do not sit there and make bold claims like "The majority of corporate crimes, send those found guilty to jail for 7-10 years on average." Because that is simply bullcrap. What you need to do is STOP getting your information from "business news" cable programs who are generally only giving marginal coverage to these matters to begin with as they do not like to paint the business world as a seedy place.

The "business news" source that covers these types of crimes the most is the Wall Street Journal and I guarantee if you go back through 10 years of coverage you will find the vast majority of cases DO NOT receive 7-10 year sentences, and actually usually end up paying fines while receiving minimal or NO jail time.

Posted Feb 14, 2007 3:19 pm PT
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komradandre

when does this game come out?

Posted Feb 14, 2007 3:17 pm PT
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Jiggafly117

PWNED

Posted Feb 14, 2007 3:16 pm PT
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polsci1503

he was collecting disability? for what? overwhelming guilt?

Posted Feb 14, 2007 3:04 pm PT
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Phazevariance

Busted

Posted Feb 14, 2007 3:03 pm PT
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Isakovic

no sad thing is that we dont realize how that ammount is only a pocket change... let me give you an example... 30 000 000 games for PS2 x 59.99$... 1 800 000 000$, and thats just for one system... hmm dont feel sorry for him @ all.

Posted Feb 14, 2007 2:55 pm PT
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TintedChimes

can I have some of the confiscated stock?

Posted Feb 14, 2007 2:55 pm PT
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