Israeli Fugitive to Pay $54m to Settle U.S. Fraud Suit

Kobi Alexander, former CEO of Comverse, fled to Namibia in 2006 and has been fighting extradition to the U.S.

Reuters
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Jacob "Kobi" Alexander, the fugitive former chief executive of Comverse Technology Inc,
agreed to pay nearly $54 million to resolve civil litigation brought by the U.S. government over the backdating of stock options, court papers show.

The settlement also resolves a civil lawsuit by the U.S. Securities and Exchange Commission. It was announced by U.S. Attorney Loretta Lynch in the Eastern District of New York.

Former Comverse CEO Kobi AlexanderCredit: Bloomberg News

Alexander will forfeit $26.2 million of ill-gotten gains and $21.4 million of interest, according to settlement papers filed with the federal court in Brooklyn, New York.

He also agreed to a $6 million civil fine, the papers show.

"Mr. Alexander is pleased to have resolved the SEC and civil forfeiture actions, and to put these matters behind him," said Jeremy Temkin, a lawyer for Alexander.

Alexander was arrested in Namibia in 2006 following an international manhunt, and has been fighting extradition to the United States. He remains in Namibia, Temkin said.

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