Ex Comverse official pleads guilty

NEW YORK – The former chief financial officer of software maker Comverse Technology Inc.pleaded guilty on Tuesday to conspiracy and securities fraud for using back-dated stock options, the US Justice Department announced.

David Kreinberg pleaded guilty to a two-count felony information charging one count of conspiracy to commit securities fraud, mail fraud and wire fraud, and one count of securities fraud, US Attorney Roslynn Mauskopf of the Eastern District said in a joint statement with a local FBI official. The charges “stem from the stock options backdating and slush fund schemes” at the New York-based company from 1998 to 2006, the statement read.The conspiracy charge carries a sentence of up to five years prison and a US$250 000 (N$1,9 million) fine, while the securities fraud charge carries a maximum sentence of 10 years prison and a fine of up to US$1 million.”The charges also require restitution in an amount to be determined by the court at sentencing, currently estimated at US$51 million,” the statement read.The government said that Kreinberg, former chief executive officer Jacob “Kobi” Alexander, and ex-general counsel William Sorin backdated the options to days when Comverse stock was trading at a low price, and below the market price on the date when the options were actually granted, thereby maximising their gains.The investigation was led by the Justice Department’s Corporate Fraud Task Force, but it was triggered in early March when a Wall Street Journal reporter became suspicious about Comverse’s stock option practices.Sentencing in the matter will be on February 23.Nampa-AFPThe charges “stem from the stock options backdating and slush fund schemes” at the New York-based company from 1998 to 2006, the statement read.The conspiracy charge carries a sentence of up to five years prison and a US$250 000 (N$1,9 million) fine, while the securities fraud charge carries a maximum sentence of 10 years prison and a fine of up to US$1 million.”The charges also require restitution in an amount to be determined by the court at sentencing, currently estimated at US$51 million,” the statement read.The government said that Kreinberg, former chief executive officer Jacob “Kobi” Alexander, and ex-general counsel William Sorin backdated the options to days when Comverse stock was trading at a low price, and below the market price on the date when the options were actually granted, thereby maximising their gains.The investigation was led by the Justice Department’s Corporate Fraud Task Force, but it was triggered in early March when a Wall Street Journal reporter became suspicious about Comverse’s stock option practices.Sentencing in the matter will be on February 23.Nampa-AFP