News and Press Releases

Jacob "Kobi" Alexander, Former Ceo of Comverse Technology Inc., Apprehended in the Republic of Namibia

FOR IMMEDIATE RELEASE
September 27 , 2006

Indictment Unsealed in the United States Charging Alexander in Stock Option Backdating and Slush Fund Schemes

BROOKLYN, NEW YORK – Roslynn R. Mauskopf, United States Attorney for the Eastern District of New York, and Mark J. Mershon, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the arrest earlier today of fugitive JACOB “KOBI” ALEXANDER, former Chief Executive Officer of Comverse Technology Inc., in Windhoek, Namibia. The arrest was made pursuant to a provisional warrant issued by a Namibian court at the request of the United States government. ALEXANDER will be brought before a court in Windhoek, Namibia within 48 hours. The United States intends to seek ALEXANDER’s extradition to the United States to stand trial on the charges set forth in an indictment, which was unsealed today at U.S. District Court in Brooklyn, New York.

The indictment against ALEXANDER charges him with multiple criminal offenses stemming from the alleged stock options backdating and slush fund schemes, dating from as early as 1998 and extending into 2006. Specifically, ALEXANDER is charged with conspiracy, two counts of securities fraud, eight counts of making false filings with the Securities and Exchange Commission, four counts of mail fraud, fourteen counts of wire fraud, and three counts of money laundering. The indictment also seeks forfeiture of approximately $138 million in ALEXANDER’s assets.

“The apprehension of ALEXANDER follows an international manhunt led by the FBI, and the cooperation of the Government of the Republic of Namibia,” stated United States Attorney Mauskopf. “We are very grateful for the Namibians’ swift action and commend them for their vigilance. We intend promptly to seek the return of the defendant to the United States to answer the serious charges now pending against him.”

FBI Assistant Director-in-Charge Mershon stated, “ALEXANDER’s alleged role in options back-dating victimized Comverse shareholders and deceived prospective investors. The fraud affected the company’s bottom line by misstating earnings. The alleged conduct is illegal, and ALEXANDER’s apprehension shows that the FBI will work internationally to bring perpetrators of corporate fraud to justice.”

The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the most serious charge – securities fraud – ALEXANDER faces a maximum sentence of 25 years’ imprisonment.

The government’s case is being prosecuted by Assistant U.S. Attorneys Ilene Jaroslaw, Linda Lacewell, Sean Casey, and Kathleen Nandan.  

 


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