Published: Sat, August 27, 2016
Economy | By Melissa Porter

Fugitive tech CEO expected to plead guilty in fraud case

Fugitive tech CEO expected to plead guilty in fraud case

The founder of Comverse Technology, Alexander was also a member of its board of directors.

Alexander disappeared in 2006 while under investigation in a scheme to pocket millions of dollars by secretly manipulating stock options for voicemail software maker Comverse Technology Inc.

In a letter to a judge, the prosecutors said Jacob "Kobi" Alexander had dropped his extradition fight in Namibia and would plead guilty to securities fraud on Wednesday in federal court in Brooklyn. "He hung out in Namibia for 10 years with an open indictment in NY". In September, a federal grand jury indicted him. But prosecutors said he was worth $100 million, and Garaufis said that Alexander - an Israeli citizen - could easily go to the consulate, get a new passport, and leave.

"It's not voluntary, it's bargained for", Garaufis said, waving a copy of Alexander's plea agreement. He had faced 35 counts.

Alexander faces up to a 10-year prison sentence.

Prosecutors paint a much different picture in a filing Wednesday morning.

Namibia does not follow US extradition treaty guidelines, according to International Business Times.

Maybe the judge might see fit to set the sentence for the exact number of days that Alexander lived it up in his luxury gated community in Namibia. He faces up to 10 years in prison. "It doesn't matter what you say". The backdating added millions to Mr. Alexander's compensation.

"I deeply regret having participated in this conduct", Alexander said.

Defense attorney Benjamin Brafman told CNBC, "We are bitterly disappointed by the judge's ruling, but he's the judge and I'm not". He fled France in 1993 after skipping bail and arrived in Namibia in 1999.

Alexander has already paid $60 million in fines and restitution.

While overseas, Alexander agreed in 2009 to pay $60 million to Comverse in connection with shareholder litigation, and to waive over $72 million in severance and other claims he had against the company.

He settled related civil government lawsuits in 2010, resulting in a $6 million penalty by the U.S. Securities and Exchange Commission. They also donated to Namibian educational programs and helped create housing in numerous nation's impoverished townships. But Brafman argued that because Alexander left before he was charged, he did not flee. Comverse was acquired by Verint Systems Inc in 2013.

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