Tags: jacob alexander | comverse | fugitive | ex-ceo

Jacob Alexander, Comverse's Fugitive Ex-CEO, Denied Bail; Judge: 'He Can't Be Trusted'

Image: Jacob Alexander, Comverse's Fugitive Ex-CEO, Denied Bail; Judge: 'He Can't Be Trusted'

Jacob Alexander and his wife Hana await court hearing. (BRIGITTE WEIDLICH/AFP/Getty Images)

By    |   Thursday, 25 Aug 2016 12:49 PM

Jacob Alexander, the fugitive former CEO of Comverse Technology, pleaded guilty Wednesday to securities fraud a decade after fleeing to Africa to avoid prosecution.

U.S. District Judge Nicholas Garaufis ordered the 64-year-old Israeli citizen detained until his Dec. 16 sentencing, calling him a flight risk, Reuters reported.

"His intelligence and his guile are a clear indication that he can't be trusted," Garaufis said.

Alexander fled in 2006 during an investigation of backdating stock options for Comverse, The Associated Press reported.

A criminal complaint alleges that Alexander made a $138 million profit exercising options and selling stock from 1991 through 2005, with about $6.4 million coming from backdating option, the AP reported. The company also is accused of awarding stock options to fictional employees.

"The use of hindsight to select the date on which stock options were granted was inconsistent with representations in the company’s 10-Ks," Alexander said in court, according to The Wall Street Journal. "I also knew it was illegal to make false statements in these documents and I deeply regret having participated in this conduct."

Alexander spent the past 10 years in Namibia, while the U.S. launched repeated attempts to extradite him. During his time in Africa, he invested in local businesses, bought a house near a golf course, invested in a low-income housing project and funded a scholarship, the Journal said.

He returned to the U.S. after reaching a plea agreement that protects his assets and only required him to plead to one criminal count rather than 30 in the original indictment, the Journal said.

Alexander faces up to 10 years in prison.

In 2009, Alexander agreed to pay $60 million to Comverse and to waive over $72 million in claims he had against the company, Reuters said. In 2010, he settled civil government lawsuits, paying a $6 million penalty to the U.S. Securities and Exchange Commission.

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Jacob Alexander, the fugitive former CEO of Comverse Technology, pleaded guilty Wednesday to securities fraud a decade after fleeing to Africa to avoid prosecution.
jacob alexander, comverse, fugitive, ex-ceo
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2016-49-25
Thursday, 25 Aug 2016 12:49 PM
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