Last update - 00:00 27/09/2006
Ex-Comverse CEO Kobi Alexander arrested in Namibia after international manhunt
By Reuters
NEW YORK - The former chief executive of Comverse Technology Inc., Jacob "Kobi" Alexander, was arrested in Namibia on Wednesday after an international manhunt, the U.S. Attorney's office said.
The United States will seek his extradition to face multiple criminal charges stemming from an alleged stock options backdating and slush fund scheme, the U.S. Attorney's Office for the Eastern District of New York said in a statement.
Namibian authorities arrested Alexander in the capital city of Windhoek after a court there issued a warrant at the request of the U.S. government, Assistant U.S. Attorney Ilene Jaroslaw said.
An indictment against Alexander that was unsealed on Wednesday charges him with conspiracy, securities fraud, making false filing to the U.S. Securities and Exchange Commission, mail fraud, wire fraud and money laundering.
He faces a maximum sentence of 25 years in prison if convicted of the most serious charge - securities fraud, the statement said.
The indictment also seeks forfeiture of about $138 million of Alexander's assets, the statement said.
Scores of U.S. companies are under federal scrutiny for possibly manipulating the grant dates and exercise prices of stock options given to senior executives.
A spokesman at Comverse declined to comment.
Two former Comverse officers, ex-finance chief David Kreinberg and ex-senior general counsel William Sorin, were charged with fraud after surrendering to the FBI on August 9.
Comverse shares rose 35 cents, or 1.63 percent, to e21.86 on the Nasdaq stock market.