Tuesday, October 24, 2006

Former CFO of Comverse Pleads

As expected (here), Comverse CFO David Kreinberg plead guilty.  He plead guilty to "a two-count felony information charging one count of conspiracy to commit securities fraud, mail fraud, and wire fraud, and one count of securities fraud." In addition to the guilty plea, he also settled civil matters the SEC.  The DOJ press release states here that the agreement

"provides for a permanent injunction enjoining him from violating or aiding and abetting violations of the antifraud, reporting, record-keeping, internal-controls, false-statements-to auditors, Sarbanes-Oxley certification, and ownership-reporting provisions of the federal securities laws; a permanent officer-and-director bar; the payment of $2,394,917.68 in disgorgement and prejudgment interest; and a permanent suspension from appearing or practicing before the Commission as an accountant."

This stresses the importance of thinking globally in settling white collar cases.  One cannot just think in terms of the criminal action, but also it is necessary to think about the civil ramifications and collateral consequences that can accrue to the individual.

The Wall Street Journal here has a list of companies, and here a list if individuals who have come under scrutiny related to stock options.



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Tracked on Nov 6, 2006 1:49:44 PM


Chris Conte (SEC/DC) did a nice job on that case. He's recently been promoted (last week).

Posted by: SEC/NASD Super Enforcement Bull | Oct 24, 2006 10:20:06 PM