Thursday, January 11, 2007

Former Comverse GC Settles Securities Fraud Case

Former Comverse Technology, Inc. general counsel William Sorin settled an SEC civil enforcement action for his role in back-dating options grants at the company.  According to the SEC Litigation Release (here), Sorin will pay "$1,670,915.03 in disgorgement, of which $1,007,201.58 represents the 'in-the-money' benefit from exercises of backdated option grants. In addition, Sorin will pay $817,509.07 in prejudgment interest thereon, and a $600,000 civil penalty, for a total of $3,088,424.10." Sorin entered a guilty plea in November 2005 to a charge of conspiracy to commit securities, mail and wire fraud.  Former Comverse CFO David Kreinberg also has pleaded guilty and agreed to settle the SEC case, paying a total of $2,394,917.68 (see SEC Litigation Release here).  Former Comverse CEO Kobi Alexander remains in Namibia fighting extradition back to the United States to face an array of fraud, conspiracy, obstruction, and bribery charges.  According to an article posted on AllAfrica.Com (here), Alexander "has decided to invest in low-cost, solar-powered housing for 100 low-income residents of Kuisebmond in Walvis Bay [Namibia]."  Don't hold your breath waiting for him to land in the United States any time soon. (ph)

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Civil Enforcement, Securities, Settlement | Permalink

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