Comverse backdating settlement
As a result, Comverse materially overstated its net income and earnings per share for more than a decade. For further information, see Litigation Release Nos.Without admitting or denying the allegations of the Commission’s Complaint, Alexander consented to the entry of a final judgment permanently enjoining him from violating Section 17(a) of the Securities Act of 1933, Sections 10(b), 13(b)(5), 14(a), and 16(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 10b-5, 13b2-1, 13b2-2, 14a-9, and 16a-3 thereunder, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. 19796 (August 9, 2006), 19878 (October 24, 2006), 19964 (January 10, 2007)."Today's settlement signals that the commission will vigorously pursue those responsible for backdating schemes wherever the investigation may lead, even, as appropriate, into the offices of corporate counsel," said SEC enforcement director Linda Chatman Thomsen in a statement.
Founded in 1982, the company went public on the Nasdaq Stock Market in 1986.
Sorin created similar false records at Ulticom, another public company majority-owned by Comverse, the SEC said.
Ulticom has said it was in the process of restating its historical financial statements for option grant accounting.
In Dating Game 2.0, however, many top executives appear to be reaping the same kinds of windfalls with a new variant on the original scam.
Instead of manipulating the dates of option grants to match a dip in the stock price, companies appear to be manipulating the stock price itself so that it’s low on […] Jacob “Kobi” Alexander, the former CEO of Long Island software firm Comverse Technology who fled to Africa to avoid fraud charges, was sentenced Thursday in Brooklyn federal court to 30 months in prison.
Sorin and other executives were accused of reaping millions of dollars in profits by altering the grant dates of stock option awards from 1998 to 2002 to boost gains available to themselves and favored employees.