Wanted in the US, setting up scholarship fund in Namibia

BARELY 24 hours before the start of his extradition hearing in Namibia, US fugitive Kobi Alexander is to announce the launch of a scholarship fund for Namibian students.

The N$150 000 fund is heralded in a glowing press release issued by the Ministry of Education in Windhoek at the end of last week. It will be officially unveiled at a function at the Ministry tomorrow morning.The very next morning, Wednesday, Alexander (54) will appear in the Windhoek Magistrates Court for extradition proceedings that will determine whether Namibia should hand him over to the US authorities.He is wanted in the US to face some three dozen criminal charges in a New York court.Former Comverse Technology CEO Alexander, Comverse’s ex-finance chief David Kreinberg and one-time senior general counsel William Sorin were charged in August with defrauding shareholders by backdating options in a bid to evade the accounting, disclosure and tax consequences of granting in-the-money options.It is claimed that Alexander alone made an illegal profit of about N$48 million (US$6,4 million).That is only a relatively minor part of total profits of about N$1,035 billion that are alleged to have padded his wallet through the selling of Comverse shares granted to him.In addition, Alexander, and his finance chief allegedly tried to conceal a slush fund from the board and from outside auditors Alexander was arrested in Namibia in September, with the help of the Namibian Police, after the FBI launched a worldwide hunt for him.The Israeli-born multimillionaire has been free on record bail of N$10 million pending the start of his extradition hearing on Wednesday.As quickly as Alexander fled the US to avoid facing charges, he has moved swiftly to financially endear himself to Namibians and put down economic roots in the country.He has not lacked takers; neither in the private sector, nor, it appears, in political circles.’BENEVOLENT’ FUGITIVE The Ministry of Education’s press statement on the ‘Kobi and Hana Alexander Scholarship Fund’ is accompanied by a one-and-a-quarter-page background paper praising Alexander’s virtues.Among others, it says Alexander “brings a wealth of business acumen”, “is the founder of Comverse Technology”, and “as CEO of Comverse …was the driving force behind granting hundreds of scholarships to Israeli students from rural areas …” It states that Alexander “is passionate about Namibia and its people”.”Further to the many investments totalling over N$100 million that he intends to bring and make in Namibia for the next five years, he is committing himself to investing in the education of Namibians,” the statement adds.While the backgrounder hails Alexander as “being at the cutting edge of technology globally …as the founder of Comverse”, it does not mention the circumstances that led to him setting up shop in Namibia.Nor does it mention that he is on the run from the law, or that he faces an extradition hearing.BUSY WEEK The week running up to the extradition hearing has been a busy one in ‘Alexander world’.In addition to the uncanny timing of the launch of the scholarship fund, a massive billboard extolling Kobi Alexander Enterprises has been put up slap bang in front of Government Park, along one of the capital city’s main arterial roads.On a different note, it was announced in the United States last week that the Wall Street Journal had won a Pulitzer Prize for its reporting on the stock-options scandal “that roiled corporate America”.The Journal’s Managing Editor, Paul Steiger, described the stock stories as “tremendous pieces of work …that resulted in more than 100 companies coming under investigation and many companies having to restate their earnings”.In this context, The Wall Street Journal was also first to the punch in breaking the story about Alexander and Comverse Technology.Also last week, the scandal-sodden telecom software shop named a new CEO, Andre Dahan.Comverse was delisted from the Nasdaq Stock Exchange in January for its failure to file financial reports for an entire year.TheStreet.com reports that the company was reportedly preoccupied by a review of its bookkeeping related to stock option backdating.Kreinberg pleaded guilty in October to conspiracy and securities fraud, and agreed to co-operate with federal prosecutors.The next month, Sorin pleaded guilty to conspiracy to commit securities, mail and wire fraud.The US Justice Department is seeking the forfeiture of US$138 million of assets from Alexander as part of its indictment.While Kreinberg and Sorin have been facing the music at home, Alexander has been pulling out the stops to set himself up as a benevolent investor of note in Namibia.* Additional information: Forbes.com, Werner MengesIt will be officially unveiled at a function at the Ministry tomorrow morning.The very next morning, Wednesday, Alexander (54) will appear in the Windhoek Magistrates Court for extradition proceedings that will determine whether Namibia should hand him over to the US authorities.He is wanted in the US to face some three dozen criminal charges in a New York court.Former Comverse Technology CEO Alexander, Comverse’s ex-finance chief David Kreinberg and one-time senior general counsel William Sorin were charged in August with defrauding shareholders by backdating options in a bid to evade the accounting, disclosure and tax consequences of granting in-the-money options.It is claimed that Alexander alone made an illegal profit of about N$48 million (US$6,4 million).That is only a relatively minor part of total profits of about N$1,035 billion that are alleged to have padded his wallet through the selling of Comverse shares granted to him.In addition, Alexander, and his finance chief allegedly tried to conceal a slush fund from the board and from outside auditors Alexander was arrested in Namibia in September, with the help of the Namibian Police, after the FBI launched a worldwide hunt for him.The Israeli-born multimillionaire has been free on record bail of N$10 million pending the start of his extradition hearing on Wednesday.As quickly as Alexander fled the US to avoid facing charges, he has moved swiftly to financially endear himself to Namibians and put down economic roots in the country.He has not lacked takers; neither in the private sector, nor, it appears, in political circles. ‘BENEVOLENT’ FUGITIVE The Ministry of Education’s press statement on the ‘Kobi and Hana Alexander Scholarship Fund’ is accompanied by a one-and-a-quarter-page background paper praising Alexander’s virtues.Among others, it says Alexander “brings a wealth of business acumen”, “is the founder of Comverse Technology”, and “as CEO of Comverse …was the driving force behind granting hundreds of scholarships to Israeli students from rural areas …” It states that Alexander “is passionate about Namibia and its people”.”Further to the many investments totalling over N$100 million that he intends to bring and make in Namibia for the next five years, he is committing himself to investing in the education of Namibians,” the statement adds.While the backgrounder hails Alexander as “being at the cutting edge of technology globally …as the founder of Comverse”, it does not mention the circumstances that led to him setting up shop in Namibia.Nor does it mention that he is on the run from the law, or that he faces an extradition hearing.BUSY WEEK The week running up to the extradition hearing has been a busy one in ‘Alexander world’.In addition to the uncanny timing of the launch of the scholarship fund, a massive billboard extolling Kobi Alexander Enterprises has been put up slap bang in front of Government Park, along one of the capital city’s main arterial roads.On a different note, it was announced in the United States last week that the Wall Street Journal had won a Pulitzer Prize for its reporting on the stock-options scandal “that roiled corporate America”.The Journal’s Managing Editor, Paul Steiger, described the stock stories as “tremendous pieces of work …that resulted in more than 100 companies coming under investigation and many companies having to restate their earnings”.In this context, The Wall Street Journal was also first to the punch in breaking the story about Alexander and Comverse Technology.Also last week, the scandal-sodden telecom software shop named a new CEO, Andre Dahan.Comverse was delisted from the Nasdaq Stock Exchange in January for its failure to file financial reports for an entire year.TheStreet.com reports that the company was reportedly preoccupied by a review of its bookkeeping related to stock option backdating.Kreinberg pleaded guilty in October to conspiracy and securities fraud, and agreed to co-operate with federal prosecutors.The next month, Sorin pleaded guilty to conspiracy to commit securities, mail and wire fraud.The US Justice Department is seeking the forfeiture of US$138 million of assets from Alexander as part of its indictment.While Kreinberg and Sorin have been facing the music at home, Alexander has been pulling out the stops to set himself up as a benevolent investor of note in Namibia.* Additional information: Forbes.com, Werner Menges