Marvell Tech says SEC to seek penalties

NEW YORK, Oct 12 (Reuters) - Marvell Technology Group Ltd (MRVL.O: Quote, Profile, Research, Stock Buzz) said on Friday that it received a "Wells Notice" from the U.S. Securities and Exchange Commission advising the maker of microchips that it planned to seek penalties against the company and one of its employees.

Marvell and Weili Dai, director of strategic marketing and business development, received notices relating to the company's past option-granting practices.

The notices indicate that the SEC intends to bring civil actions against Marvell and Dai for injunctive relief and monetary penalties, the company said.

Marvell said it plans to continue cooperating with the SEC and will attempt to resolve the matter before any action is filed.

The SEC is not currently recommending enforcement actions against any of the company's current officers or board members, Marvell said. Dai is not a Marvell officer or board member, according to the company.

On April 24, Marvell said SEC opened a formal investigation into the company's stock option practices. (Reporting by Chris Reiter)