Friday, May 11, 2007
Former Comverse Technology general counsel William Sorin received a sentence of one year and one day for his role in options backdating at the company. In November 2006, Sorin entered a guilty plea to a charge of conspiracy to commit mail, wire, and securities fraud for participating in the creation of false documents to award management, including himself, options backdated to generate additional profits. Sorin also settled an SEC civil enforcement action in January 2007, agreeing to disgorge profits (plus interest) of $2.4 million and pay a civil penalty of $600,000.
The extra day tacked on to the sentence is more than symbolic, because under Bureau of Prisons regulations Sorin is only eligible to receive good time credit if the sentence exceeds one year. The 15% reduction available by adding a day means that he will serve about eight months in a federal correctional institution, with the last part of the sentence probably in a half-way house before he's released to a three-year term of supervised release. Sorin's guilty plea also requires him to cooperate in the government's prosecution of former Comverse CEO Kobi Alexander, who has settled into Namibia while he fights an extradition action to return him to the U.S. to face charges. A Reuters report (here) discusses the sentencing. (ph)