Comverse technology stock option backdating web blogs oklahoma dating
However this scandal has had a long term effect on the company and it is still recovering from the blow that it suffered during the investigations and subsequent convictions of its executives.The Comverse Background story The Comverse Backdating scheme by three of the company’s top executives started coming apart in March of 2005 when a reporter called the CEO Jacob “Kobi” Alexander asking how it was that all options grants were made at a time when there was a sharp dip in stock prices of Comverse Technology Inc.If backdating is done with proper documents and intimation of other stock holders the very purpose of backdating is defeated.Backdating is generally done to grant employees and favoured inviduals within the organisation an extra compensation without providing any necessary accounting or details in financial statements.The Securities and Exchange Commission is currently investigating more than 80 public companies and the Internal revenue service is auditing 40 businesses for improper reporting of backdated options.( Securities Litigation & Regulation, Mateja, W. This scandal hit the headlines in 2005 and involved some of the top executives of the company and even today continues to bring forth many more shocking details of the fraud.Whether backdating options by some of its top executives is ethical still remains debatable and there are many gray areas that still need to be dealt with.Introduction The stock market has always been riddled with scandals and controversies.
One of the types of scandals to hit the stock markets and which did not receive much attention until lately is that of backdating stock options.
The general counsel, who was also in on the scheme, drafted and signed off on the reports.( Options run out at Comverse, Richard Duprey (2006)) While they arrested 2 of the executives CFO David Kreinberg and former General Counsel William Sorin the kingpin of the racket CEO Jacob “Kobi” Alexander fled the police and was later tracked down to Sri Lanka leading to high drama.
He is currently in Namibia in prison facing extradition charges.
Later these were transferred to a fictional internal account of I. Fanton which supposedly stood for ‘Phantom Of the Opera’.
This allowed CEO and founder of Comverse Inc Alexander to transfer the stock options to himself and some other employees within the conspiracy thus earning huge profits and decieving shareholders and potential shareholders clearly showing that the intent was to commit a fraud and that intention was satisfied.