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Photo: AP
Former Comverse CEO and Chairman Kobi Alexander
Photo: AP

Comverse shuns former CEO

Israeli hi-tech company terminates consultation services offered by three former senior figures in wake of stock options scandal

Comverse announced Thursday it has terminated the consultation services provided by three former senior figures: Ex-CEO and Chairman Kobi Alexander, former Chief Financial Officer David Kreinberg, and ex-Corporate Secretary WIllian Sorin.

 

The three figures resigned in May of this year in the wake of a stock option scandal but continued to draw a salary and various benefits from the company in exchange for consultation services. The three are suspected of fraud offences after apparently backdating options in order to boost profits, according to a US Securities and Exchange Commission investigation.

 

On Tuesday of last week, Comverse founder Alexander was declared a fugitive by the FBI.

 

In March of this year, Comverse announced that it was putting off the publication of its financial reports and may have to redraft them after re-examining the options issue. The company is traded in New York and is worth USD 4.3 billion.

 

On Wednesday, the company received an extension from NASDAQ management to submit the reports by September 25, 2006.

 

Comverse develops, produces and markets telecommunication and software for communication and data processing applications. The company employs more than 5,000 employees worldwide but its largest center is located in northern Tel Aviv.

 


פרסום ראשון: 08.20.06, 15:33
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