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Shocking News at Comverse, But Stock is Up
Posted on 08.09.06 by Nikhil @ 2:12 pm

Comverse, recently, has been under scrutiny recently for its handling of stock options. Today, three of its former top executives were charged in a scheme to manipulate stock options. Former CEO Kobi Alexander, former finance chief David Kreinberg and former senior general counsel William Sorin were all charged with manipulating stock options by falsifying the dates on which they were granted. Apparently, from 1991 through 2005 Alexander exercised options and sold stocks worth approximately $150 million, of which approximately $138 million was profit. On top of that, Alexander and Kreinberg are accused of using fictitious names to generate hundreds of thousands of backdated options which they then parked in a secret slush fund.

So far, both Kreinberg and Sorin have surrendered the FBI – however no one is exactly sure where Alexander is. Interestingly, the stock is up on the news, by just over 1%.

Time to buy? This, too, is covered in Forbes Wireless Stock Watch.


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I'm Nikhil Hutheesing, and WirelessNik is my personal blog. A senior editor at Forbes, I am also the editor of the newsletter, Forbes Wireless Stock Watch. Here, you'll find my take on the latest breakthroughs in wireless technologies as well as ways to profit from wireless in the stock market.


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