Comverse technology backdating scandal

However, based on the first case brought by the Department of Justice and the SEC against two Brocade Communications Systems executives, it seemed virtually impossible to backdate options and achieve the ultimate goal of putting grants “in the money” without first deliberately falsifying documents and then covering up the sham—one definition of accounting fraud.Last month, the SEC settled separate civil fraud charges with Brocade and Mercury Interactive, two of the earliest companies to be embroiled in the stock options backdating scandal.Former CEO Jacob "Kobi" Alexander, former CFO David Kreinberg and former General Counsel William F.

The lower the strike price, the greater the potential for making money when exercising the options.

Or did a lot of CEOs just have amazingly good luck?

A stock option gives the recipient the right to purchase stock at a set price.

The US does not have an extradition treaty with Namibia.

While leading Comverse, a voicemail-software maker, Alexander mastermided a 15-year scheme to backdate stock options to put them in the money, the government alleged in its 35-count indictment.

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