But after the bubble burst, the company was among the first to be targeted in a sweeping federal investigation of options fraud. Comverse Technology survived until 2013, when it was bought out by a former subsidiary, Verint Systems.Escape to Africa With his own indictment looming in 2006, Alexander moved to Namibia, which had no extradition treaty with the United States.He is also accused of money laundering after moving millions of dollars to personal accounts in his native Israel, as well as bribery and witness tampering for attempting to persuade the company's chief financial officer to take the fall for the scandal.Comverse, a darling of Wall Street during the tech boom, pioneered the development of voicemail.Former Comverse Chief Financial Officer David Kreinberg was sentenced by Judge Nicholas G. In October 2006, he became the first of three Comverse executives facing criminal backdating charges to plead guilty. In the latest example of an auditor’s work being tied to fraud allegations, former Comverse Technologies CEO Jacob “Kobi” Alexander and the company’s one-time legal counsel, William Sorin, are suing Deloitte & Touche in connection with the purported -million stock-option backdating scandal that came to light more than two years ago.
His luxury townhouse was adjacent to a private airstrip, even though a Namibian judge had restricted his travel and Alexander theoretically faced certain arrest if he left the country.
Alexander, who became a fugitive from the FBI when he allegedly fled the U. for Namibia, where he is living today, filed a law suit separate from Sorin’s suit against Deloitte in federal District Court in Brooklyn, N. In the complaints, Alexander and Sorin said that if they are held liable in the backdating case, Deloitte & Touche should bear some responsibility for damages, according to Knight Ridder/Tribune.
Deloitte has been Comverse’s independent auditor since 1994.
After being freed on bail the following month, Alexander had been fighting extradition to the United States, where he faced 35 counts including securities fraud, money laundering and obstruction.
But Alexander now "wants to accept responsibility for his conduct" after reaching a "favorable plea agreement," Brafman said. Department of Justice declined to comment on the plea, which was reported earlier by CNBC television.