Defense attorney Benjamin Brafman said Alexander would plead guilty to one count “relating solely to backdating” and would seek release on a million bond secured with million in cash.
He said he was hopeful Alexander would get a lenient sentence.
A criminal complaint alleges that from 1991 through 2005 he exercised options and sold stocks worth approximately 0 million, making a 8 million profit.
Of that, about .4 million was generated by backdating options, it says. The scheme allowed Alexander to award those options to real “favored employees” and to himself without board of directors approval, the papers add.
NEW YORK (AP) — An Israeli fugitive former technology company CEO who frustrated federal authorities by living comfortably in exile in southwest Africa for the past 10 years has agreed to return to the United States to face charges he hatched a scheme to pocket millions of dollars by secretly manipulating stock options and is expected to plead guilty, prosecutors revealed on Tuesday.
Its headquarters were in the US, while R&D and manufacturing were done in Israel.
Thank you, Ronit Hasin-Hochman, CEO, Jerusalem Post Group Yaakov Katz, Editor-in-Chief UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again US DISTRICT Judge Nicholas Garaufis stared sternly at the defendant dressed in brown prison garb, in the dock of a Brooklyn courtroom, and said, “I really don’t understand how someone as brilliant and accomplished and focused and respected as you could be so incredibly, abjectly foolish to make some of the decisions you made.”The 64-year-old defendant, Jacob “Kobi” Alexander, an Israeli hi-tech visionary and founder of the once market-leading company Comverse, replied, “I’m truly sorry for everything I have done wrong.
I deeply regret running away instead of dealing with the justice system like I should have.
Get The Start-Up Israel's Daily Start-Up by email and never miss our top stories Free Sign Up The government has said it will oppose bail.
Alexander vanished in 2006 while under investigation for backdating stock options for his Woodbury-based company, voicemail software maker Comverse Technology Inc.