Lynch said money being forfeited will go to Comverse, for use in the shareholder litigation.
The former Comverse Technology chief executive officer who authorities say fled to Africa a decade ago to avoid prosecution in a stock options scandal will return to the United States and plead guilty to a criminal charge, his lawyer said on Monday.
Comverse backdating settlement
Backdating involves the retroactive grants of stock options on dates when stock prices were lower, making the options more valuable. District Court in Brooklyn, New York, Alexander will forfeit $26.2 million of ill-gotten gains and $21.4 million of interest, in addition to paying the $6 million fine. 600-00338 held in the name of Kobi Alexander et al in the same court, No.
Concealing the practice through improper accounting is illegal, and can inflate earnings and perhaps stock prices. He and his wife are forfeiting more than $46 million held in two bank accounts, a sum that satisfies much of the SEC settlement, court papers show.
The settlement, announced Tuesday, returns the money to Mr.
Alexander's former company, Comverse Technology, which in turn will use it to settle shareholder lawsuits related to the backdating scandal.
He has also agreed to pay a $6 million fine to the Securities and Exchange Commission.
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. When he fled, he allegedly misled his own lawyers and the government about his plans to return and secretly moved million overseas.
Jacob "Kobi" Alexander, 64, will plead guilty to one count of backdating stock options, the lawyer, Benjamin Brafman, said in an email.
The defendant had been arrested in Namibia in September 2006 after a global manhunt. Department of Justice did not immediately respond to a request for comment.
| Updated Jacob Alexander, the one-time chief of a telecommunications software maker who fled to Namibia to avoid charges related to stock option backdating, has agreed to forfeit nearly million to settle a civil action by federal prosecutors. and civil forfeiture actions and to put these matters behind him,'' said one of his lawyers, Jeremy H. ''Like the previous settlements of the other civil cases, the resolution of the S. Lynch, the United States attorney in Brooklyn, said in a statement.