Latest: Corruption and Money Laundering.
A former CEO will return to the U.S. after a decade on the run in Africa to plead guilty to securities fraud. (Bloomberg, CNBC)
Corruption Currents: Ex-CEO Returns to Face Charges After Decade on Run.
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Fugitive U.S. technology executive millionaire
Kobi Alexander and his wife, Hanna,
await the start of his extradition hearing in
Windhoek in September 2008. PHOTO:REUTERS |
The former chief executive of Comverse Technology Inc. will return to the U.S. this week and plead guilty to backdating stock options after more than a decade fighting extradition from Africa.
Jacob "Kobi" Alexander, 64, is scheduled to appear in Brooklyn federal court Wednesday to admit to one count of securities fraud, according to his lawyers and court filings. Alexander appeared Monday in a court in
Namibia and agreed to waive extradition, said one of his attorneys, Jeremy Temkin.
“The plea is the culmination of several years of negotiation,” Temkin said.
Benjamin Brafman, another of Alexander’s attorneys, said, “He wants to resolve his legal issues. We’ve come to an agreement with the government that we think is reasonable and fair. It’s time."
The 2006 case against Alexander and two other officials at the voice-mail software maker came at a time when the Federal Bureau of Investigation was investigating dozens of allegations of stock-options fraud at publicly traded companies. Alexander, who has dual U.S. and Israeli citizenship, originally faced 35 criminal counts including stock-option backdating, conspiracy, fraud and money laundering.
‘Fargo’ Fund
The U.S. alleged that Alexander, William Sorin, the firm’s former general counsel, and David Kreinberg, the ex-finance chief, were part of a plot to backdate stock options. Alexander led the operation for about 15 years beginning in 1998 and launched a secret slush fund that was initially named “I. M. Fanton,” in an apparent reference to "phantom," prosecutors said. The fund was later renamed “Fargo” after the Coen brothers’ movie.
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