Comverse. Criminal investigation
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Outgoing Comverse CEO Kobi Alexander
Report: Comverse probed over scandal
Wall Street Journal, which exposed stock options scandal at Tel Aviv-based high-tech company, says NY state prosecutor launched criminal investigation into affair; US Attorney General’s Office demands Comverse hand over relevant documentation
The US Attorney General’s Office has subpoenaed Tel Aviv-based Comverse Technology Inc., demanding that it submit documentation regarding stock options given to company employees in the past decade, Israel’s leading newspaper Yedioth Ahronoth reported Sunday.
Comverse, a leading provider of software and systems that enable multimedia network-based enhanced services, told NASDAQ that it plans to comply with the attorney general’s demand.
According to the Wall Street Journal, which exposed the stock options scandal at Comverse and other companies, reported that the New York State Prosecutor launched a criminal investigation against the company.
Last week Comverse CEO Kobi Alexander and CFO David Kreinberg resigned amid allegations that the company had manipulated dates by which the options grants were recorded to maximize profits and minimize costs.
Yahud-based Mercury Interactive Corporation CEO Amnon Landan quit last November amid similar allegations.
