Comverse backdating settlement
A criminal complaint alleges that from 1991 through 2005 he exercised options and sold stocks worth approximately 0 million, making a 8 million profit.Of that, about .4 million was generated by backdating options, it says. The scheme allowed Alexander to award those options to real “favored employees” and to himself without board of directors approval, the papers add.
The sentence was a bit more than the two years Alexander’s lawyers sought but far less than the 10-year maximum the law specifies. Alexander has agreed to forfeit more than .6 million from two investment accounts allegedly the proceeds from a stock option manipulation scheme that also involved two other former Comverse executives. The civil settlement does not affect Alexander's status as a fugitive, and extradition proceedings are still pending to get him back to the U. S., and Alexander has remained in the African nation fighting in court against the prospect of being sent back to the U. In 2006, the SEC and federal prosecutors charged Alexander and other former Comverse executives, all of whom left the company that year, with a scheme to manipulate stock options for profit. Namibia does not have an extradition treaty with the U.HOWEVER, RATHER than face trial, he fled with his wife and children to the desert nation of Namibia, on Africa’s southwest coast, from where he felt he could not be extradited.(He fled Israel because Israel and the US have an extradition treaty.) Namibia is a huge arid nation, mostly desert, 40 times the size of Israel with just two million people.
Alexander also will pay a $6 million civil penalty to the Securities and Exchange Commission."Alexander fled halfway around the world, but he was not able to escape the financial consequences of his crimes," Brooklyn-based U. The SEC alleged that Alexander also created a slush fund of backdated options by causing options to be granted to fictitious employees, and later used these options to recruit and retain key personnel.