Former Comverse CEO and Chairman Kobi Alexander
Photo: AP
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.
Comverse Scandal
Shlomi Sheffer
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
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.