Another Backdating Guilty Plea From A Comverse Executive

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The noose just got a little tighter around the neck of ex-Comverse CEO Kobi Alexander. The company’s former general counsel, William F. Sorin, is expected to plead guilty to charges stemming from controversially “backdated” stock options grants made by Comverse.
Under a practice now known as backdating, dozens of companies have revealed that they pegged the options to dates earlier than the date they were actually granted, making the grants potentially more valuable to recipients. Because the date fudging wasn’t disclosed to investors or tax-authorities, backdating has led to investigations and indictments by the SEC and federal prosecutors.
Sorin is the second Comverse executive to plead guilty to backdating charges. It is expected that they are cooperating with prosecutors. Federal officials currently seek the extradition of Alexander from Namibia, where the fugitive executive has been since sometime this summer. Although many companies have revealed that backdating occurred in years past, federal prosecutors seem to have focused on Comverse because high-level executives seem to have gone to extraordinary lengths to conceal the practice from shareholders and board members. ANd it probably doesn't hurt that, everyone knows, Kobi Alexander is no where near as popular as the CEO of another famous backdating Company, Steve Jobs. That guy invented the Ipod so you totally can't indict him.

Comverse Executive to Plead Guilty
[Reuters in the New York Times]

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