Comverse technology backdating scandal
It's pretty clear by now that the stock option backdating scandal is much more widespread than initially believed more than 150 to date, just two companies, brocade communications and comverse technology , have been hit with criminal indictments due to backdating allegations jack ciesielski, editor. Ceo's use stock options effectively) see also charles forelle & james bandler, dating game---stock-options criminal charge: slush fund and fake employees --- us accuses 3 ex-executives at com verse technology of long- running scheme--- scrambling to avoid detection, wall st j, aug. Former comverse chief kobi alexander serving 30 months for manipulating stock options to serve out rest of sentence in israel, at his request vanished in 2006 while under investigation for backdating stock options for his woodbury-based company, voicemail software maker comverse technology inc. According to several current and former executives, the company backdated sales contracts, pushing deals back by several days to count in an earlier a handful of critical path execs, including vice-president for business development mari tangredi, flew out to comverse technology inc, a customer in. Ending a decade on the run, the former chief executive officer of comverse technology inc who fled to africa to avoid a fraud prosecution over a stock options scandal is returning to the united states to plead guilty.
The backdating scandal is both more pervasive and, given the complexity of option valuation, in some ways more impenetrable the primary aim of this article is to unpack the payoffs to backdating – to determine the effects of backdating on the actual values of options granted, and in the case of backdated executive stock. 2 to address the misconduct associated with the practice of backdating stock options, shareholders could bring a securities order of the six largest aggregate settlements, are unitedhealth group, $0, comverse technology, $275,000 broadcom the impact of the options backdating scandal on shareholders journal. The daily newspapers haaretz and the jerusalem post called comverse a “ flagship” company, and bloomberg news called alexander “the wizard of israel's technology boom” i remember thinking, at the time, how well comverse was run and led then came the options-backdating scandal and it all fell.
The ex-ceo of a tech company was sentenced to two-and-a-half years behind bars thursday in brooklyn court for securities fraud jacob “kobi” alexander pleaded guilty last august to back-dating stock options for his voicemail software company, comverse technology, after spending a decade on the lam. The backdating scandal has created a fugitive — jacob alexander, known as kobi, the former chief executive of comverse technology, who fled to namibia under suspicion of conspiracy, securities fraud and other offenses on the civil side, the sec filed about 50 cases the largest one involved dr. Ne of the biggest recurrent financial headlines in recent years concerns incentive corporate compensation in the form of stock options in 2005 a study was conducted on the timing of corporate executive stock options awards the study concluded that it was likely in some cases the timing of stock options grants was. 23, 2010 — the securities and exchange commission today announced that comverse technology, inc co-founder jacob kobi alexander has agreed to a $536 million settlement of sec charges against him in comverse's long-running options backdating scheme he also will be barred permanently.
The head of a defunct surveillance and communications software company has been given the longest-ever prison sentence for back-dating stock options alexander had been the ceo of comverse technology, a new york-based software developer that, with the backing of the israeli government,. Jacob 'kobi' alexander, the former comverse technology inc chief executive officer, waits for court proceedings to begin, namibia, july 9, 2007 this matters : the backdating scandal was exposed thanks to researchers in american academia, which is a critical player in the american capital market. Providing us with data about firms subject to backdating investigations, and woodruff-sawyer & co for their litigation the recent option backdating ( hereinafter bd) scandal provides us with a powerful setting 4 at comverse technology, the ceo had orchestrated a decade-long fraudulent bd scheme involving falsified. A former executive at us firm comverse technology pleads guilty to fraud and conspiracy in the abuse of share options the company was in fact issuing backdated options with an exercise price lower than the fair market value on the grant date, he said after learning this, i agreed with the chief.
Former comverse technology chairman and ceo jacob kobi alexander, who refused to return from africa after being indicted in a wide-ranging stock option scandal a decade ago, has agreed to return to the us to face charges, cnbc has learned alexander will plead guilty wednesday to a one-count. The veteran israeli high-tech businessman tells globes that israeli companies must be alert to growing global competition in 2005, the option backdating scandal erupted at the company (the same trick that forced comverse's kobi alexander to flee to namibia for a decade, and recently returning to the.
Comverse technology backdating scandal
There was the george polk award in 1988 (for coverage of the iran-contra scandal with a team of knight-ridder reporters) the grand prize in the 1996 where he tracked down former comverse technology ceo jacob “kobi” alexander (who had fled there rather than discuss his own backdated stock. Comverse technology had been tainted by a tumultuous history that includes a stock-options backdating scandal and a period in which both firms failed to disclose their financial statements as the companies were undergoing an expensive audit comverse technology, which sells billing software and.
- We identify, solely on the basis of public grant and stock price data, a sample of companies that are highly likely to have committed backdating two-thirds of this sample have not disclosed evidence of backdating, allowing the first study of the economic consequences and characteristics of undisclosed.
- There was a spate of backdating stock options in the 2000s, mostly at technology firms that rely heavily on stock options for executive compensation, but also at some companies not in the tech sector the backdating scheme involved moving an effective date for the exercise of stock options from when the options were 'out.
- For its creative and comprehensive probe into backdated stock options for business executives that triggered investigations, the ouster of top officials and widespread change in corporate america.
The former comverse technology chief executive officer who authorities say fled to africa a decade ago to avoid prosecution in a stock options scandal will return to the united states and plead guilty to a criminal charge, his lawyer said on monday jacob “kobi” alexander, 64, will plead guilty to one count. On firms targeted by the sec and doj and to bernie black for sharing data on backdating litigation we thank workshop arising out of the stock options backdating scandal backdating involved the group inc, mercury interactive corp, analog devices inc, brooks automation inc, comverse technology inc, and. Mr alexander, known as kobi, was the chief executive of comverse technology, a high-flying software communications company that was founded in israel in 2006, comverse became enmeshed in the stock options backdating scandal that snared many technology companies in that period federal. I count no fewer than 38 top executives at 19 high-tech companies that have bit the dust over this stuff we're talking top executives at big-name companies like apple, altera, broadcom, brocade, cirrus logic, comverse, kla-tencor, maxim, mcafee, rambus, sanmina-sci, take two, trident, verisign, and.