US fugitive faces 3-week wait

JACOB ‘Kobi’ Alexander, the former Chief Executive Officer of a leading New York-based software company whose extradition to the United States has been requested by the US authorities, made another brief appearance in court yesterday.

Alexander, his team of lawyers, and Deputy Prosecutor General Johnny Truter met Magistrate Sarel Jacobs behind closed doors in his office at the Windhoek Magistrate’s Court. The outcome of that meeting was that Alexander will now have to appear before a Magistrate again on November 16.Alexander’s court appearance yesterday took place less than a day after a former fellow executive in Comverse Technology Inc – the New York-based voicemail software maker of which Alexander had been the CEO until the beginning of May this year – pleaded guilty in a New York court to conspiracy and securities fraud charges.The former colleague of Alexander, David Kreinberg, was the Chief Financial Officer of Comverse until he left the company at the same time as Alexander.It had been expected that the purpose of Alexander’s appearance before the Magistrate yesterday would have been to set a date for the start of a hearing that should determine whether he would be extradited to the US or not.That date is now expected to be set with Alexander’s next scheduled court appearance on November 16.One of Alexander’s lawyers, Louis du Pisani, and Truter said after the meeting with Magistrate Jacobs that Alexander’s legal team has not yet received copies of the documents that the US delivered to Namibia’s Ministry of Justice on Friday to formally ask that Alexander be detained in Namibia in order to be sent to the US.Alexander’s lawyers wanted to have a chance to study the documents before arranging a date for the start of Alexander’s extradition hearing, it was said.Alexander faces criminal charges in the US in connection with allegations that while he was CEO Comverse Technology Inc, he was involved in an allegedly illegal scheme in which he and other Comverse executives earned millions of US dollars through illegally manipulating the dates when they were entitled to buy shares in the company.The result of this alleged manipulation – referred to as stock options backdating – was that Alexander and two fellow former Comverse executives were able to buy shares in the company at lower prices than they were supposed to be entitled to pay, the US Department of Justice is claiming.Alexander is alleged to have reaped illegal profits amounting to some US$6,4 million (about N$48 million) in the process.In the US, Alexander, Kreinberg and William Sorin, who was the General Counsel of Comverse, were initially charged together with various counts of fraud in early August.On Tuesday, it was reported in several American media outlets yesterday, Kreinberg (41) pleaded guilty to conspiracy and securities fraud charges.According to a report that was published in The Boston Globe, Kreinberg agreed to co-operate with the US authorities in the intended prosecution of Alexander.The report also stated that Kreinberg had implicated Alexander in the plea that he gave in Brooklyn Federal District Court in New York.Kreinberg claimed that Alexander had directed a scheme to systematically backdate stock option grants that they received at Comverse, it was reported.The Associated Press also reported that when he pleaded Kreinberg had stated that he knew at the time that his actions as part of the backdating of stock options were wrong.He also stated that he had agreed with Alexander and others at the company to assist them in continuing with the practice of backdating stock options after he had found out about the practice, AP reported.Kreinberg and Sorin are alleged to have each earned about US$1 million (about N$7,6 million) through their involvement in the alleged options backdating scheme.Kreinberg could face up to 15 years’ imprisonment, and could be ordered to pay tens of millions of US dollars in restitution, when he is sentenced on February 23, it was further reported.Alexander was initially wanted in the US on 32 charges, which according to the US authorities could result in him being sentenced to up to 25 years’ imprisonment.Since the US asked for his provisional arrest pending extradition on September 27, however, an additional two charges of attempted bribery and securities fraud have been filed against him in the Brooklyn Federal District Court, The New York Times has reported.The attempted bribery charge relates to allegations that Alexander had tried between March 11 and 15 to offer a witness in his case millions of US dollars in order to buy the witness’s silence.On this new charge, he could be sentenced to between five and ten years’ imprisonment.The outcome of that meeting was that Alexander will now have to appear before a Magistrate again on November 16.Alexander’s court appearance yesterday took place less than a day after a former fellow executive in Comverse Technology Inc – the New York-based voicemail software maker of which Alexander had been the CEO until the beginning of May this year – pleaded guilty in a New York court to conspiracy and securities fraud charges.The former colleague of Alexander, David Kreinberg, was the Chief Financial Officer of Comverse until he left the company at the same time as Alexander.It had been expected that the purpose of Alexander’s appearance before the Magistrate yesterday would have been to set a date for the start of a hearing that should determine whether he would be extradited to the US or not.That date is now expected to be set with Alexander’s next scheduled court appearance on November 16.One of Alexander’s lawyers, Louis du Pisani, and Truter said after the meeting with Magistrate Jacobs that Alexander’s legal team has not yet received copies of the documents that the US delivered to Namibia’s Ministry of Justice on Friday to formally ask that Alexander be detained in Namibia in order to be sent to the US.Alexander’s lawyers wanted to have a chance to study the documents before arranging a date for the start of Alexander’s extradition hearing, it was said.Alexander faces criminal charges in the US in connection with allegations that while he was CEO Comverse Technology Inc, he was involved in an allegedly illegal scheme in which he and other Comverse executives earned millions of US dollars through illegally manipulating the dates when they were entitled to buy shares in the company.The result of this alleged manipulation – referred to as stock options backdating – was that Alexander and two fellow former Comverse executives were able to buy shares in the company at lower prices than they were supposed to be entitled to pay, the US Department of Justice is claiming.Alexander is alleged to have reaped illegal profits amounting to some US$6,4 million (about N$48 million) in the process.In the US, Alexander, Kreinberg and William Sorin, who was the General Counsel of Comverse, were initially charged together with various counts of fraud in early August.On Tuesday, it was reported in several American media outlets yesterday, Kreinberg (41) pleaded guilty to conspiracy and securities fraud charges.According to a report that was published in The Boston Globe, Kreinberg agreed to co-operate with the US authorities in the intended prosecution of Alexander.The report also stated that Kreinberg had implicated Alexander in the plea that he gave in Brooklyn Federal District Court in New York.Kreinberg claimed that Alexander had directed a scheme to systematically backdate stock option grants that they received at Comverse, it was reported.The Associated Press also reported that when he pleaded Kreinberg had stated that he knew at the time that his actions as part of the backdating of stock options were wrong.He also stated that he had agreed with Alexander and others at the company to assist them in continuing with the practice of backdating stock options after he had found out about the practice, AP reported.Kreinberg and Sorin are alleged to have each earned about US$1 million (about N$7,6 million) through their involvement in the alleged options backdating scheme.Kreinberg could face up to 15 years’ imprisonment, and could be ordered to pay tens of millions of US dollars in restitution, when he is sentenced on February 23, it was further reported.Alexander was initially wanted in the US on 32 charges, which according to the US authorities could result in him being sentenced to up to 25 years’ imprisonment.Since the US asked for his provisional arrest pending extradition on September 27, however, an additional two charges of attempted bribery and securities fraud have been filed against him in the Brooklyn Federal District Court, The New York Times has reported.The attempted bribery charge relates to allegations that Alexander had tried between March 11 and 15 to offer a witness in his case millions of US dollars in order to buy the witness’s silence.On this new charge, he could be sentenced to between five and ten years’ imprisonment.