Comverse backdating scandal
In addition, the investor suit accused Alexander and Kreinberg of funneling some of the backdated options into a hidden “slush fund” from which they then granted options to several Comverse employees.Menorah Group is charging that the slush fund dates back to 1996, and was used up until November of 2006 when the scheme was uncovered.
The same goes for the giveback of million in unvested share awards by the bank’s former community-banking head, Carrie Tolstedt, the analysis, supported by Audit Analytics, found.JAGOW: Allan Sloan is the Wall Street Editor for Newsweek. Comverse Technology, Inc., founded in Israel, was a technology company located in Woodbury, New York in the United States, that developed and marketed telecommunications software.On September 27, 2006, he was arrested in Namibia after hiding in Windhoek with his family, where he had bought a house at a country club.If extradited to the US and convicted, he faces 25 years in prison. (Pink Sheets: CMVT), originally founded in Israel, is a technology company located in Woodbury, Nassau County, New York, which develops and markets telecommunications software.Ex-CEO Jacob Alexander, was classified a wanted fugitive in August 2006 by the US Federal Bureau of Investigation.It is unclear whether Deloitte, as Comverse’s auditor, will be held liable for any damages related to the suit.However, the idea of suing or calling into question the work of a third party — such as an independent auditor — that is not directly connected to the alleged fraud may be gaining steam.Complaint: A complaint Complaint filed by Securities and Exchange Commission on June 18, 2009 outlines charges connected to two separate fraudulent schemes, including the above mentioned options backdating. engaged in two separate fraudulent schemes, during the course of more than a decade, to materially misstate its financial condition and performance metrics.Paragraph 1 and 66 are extracts from the Complaint document. The first scheme involved improper backdating of Comverse stock options.