Comverse Technology’s former General Counsel sentenced to jail

William Sorin, former General Counsel of Comverse Technology was sentenced Thursday to 366 days in prison for securities backdating, in a plea-bargain made with the Brooklyn district attorney.

Sorin (58) was also ordered to pay $52 million in damages, as compensations to stock holders who suffered losses by the securities backdating, which took place in 1998-2002. Payment of the damages is pending results of two other trials held against other suspects by the US Securities and Exchange commission.

Sorin, along with two other senior executives in Comverse Technology, Kobi Alexander and former CFO (Chief Financial Officer) David Kreinberg, were charged with back dating securities option, thus raking in millions of dollars into their own pockets. Kreinberg (41) pleaded guilty In October 2006.

Alexander, founder and CEO (Chief Executive Officer) of Comverse Technology fled to Namibia after the FBI issued a warrant for his arrest. He is now waiting for his extradition hearing scheduled for June.

Following the SEC investigation, Comverse Technology voted in a new board of directors led by Andre Dahan, as CEO, and although the company’s stock was delisted by Nasdaq, it still carries a $4.6 billion market value.

According to initial reports Comverse Technology is expected to report earning of $1.59 billion in 2006.