Comverse technology stock option backdating partnership liquidating distribution and example

Posted by / 29-Apr-2018 02:13

Comverse technology stock option backdating

As part of his SEC settlement, Sorin agreed to surrender

As part of his SEC settlement, Sorin agreed to surrender $1.67 million in ill-gotten gains and pay a $600,000 civil penalty and $817,509 in prejudgment interest.In November, Sorin pleaded guilty to one criminal count of conspiracy to commit securities fraud, mail fraud and wire fraud as part of a plea agreement.

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As part of his SEC settlement, Sorin agreed to surrender $1.67 million in ill-gotten gains and pay a $600,000 civil penalty and $817,509 in prejudgment interest.

In November, Sorin pleaded guilty to one criminal count of conspiracy to commit securities fraud, mail fraud and wire fraud as part of a plea agreement.

"Today's settlement signals that the commission will vigorously pursue those responsible for backdating schemes wherever the investigation may lead, even, as appropriate, into the offices of corporate counsel," said SEC enforcement director Linda Chatman Thomsen in a statement.

In August, the commission said it had brought fraud charges against Sorin and Comverse's former chief executive, Kobi Alexander, and former finance chief, David Kreinberg, for manipulating stock option grant dates. Sorin and Kreinberg surrendered to the FBI immediately, and Alexander was captured in September in Namibia.

William Sorin also agreed to a permanent bar from acting as an officer or director of a public company, the SEC said.

He agreed to the settlement without admitting or denying the charges.

It was delisted from NASDAQ and barred from paying stock-based compensation.

The lesson students learn from this case is that a seemingly minor white collar crime has serious repercussions.

.67 million in ill-gotten gains and pay a 0,000 civil penalty and 7,509 in prejudgment interest.

In November, Sorin pleaded guilty to one criminal count of conspiracy to commit securities fraud, mail fraud and wire fraud as part of a plea agreement.

"Today's settlement signals that the commission will vigorously pursue those responsible for backdating schemes wherever the investigation may lead, even, as appropriate, into the offices of corporate counsel," said SEC enforcement director Linda Chatman Thomsen in a statement.

In August, the commission said it had brought fraud charges against Sorin and Comverse's former chief executive, Kobi Alexander, and former finance chief, David Kreinberg, for manipulating stock option grant dates. Sorin and Kreinberg surrendered to the FBI immediately, and Alexander was captured in September in Namibia.

William Sorin also agreed to a permanent bar from acting as an officer or director of a public company, the SEC said.

He agreed to the settlement without admitting or denying the charges.

It was delisted from NASDAQ and barred from paying stock-based compensation.

The lesson students learn from this case is that a seemingly minor white collar crime has serious repercussions.

However, its top executives also ran a secret option backdating scheme for several years.The case has a difficulty level of four and is appropriate for senior level undergraduate students and first year MBA students.At the intermediate level, the case can be used in financial accounting, auditing, or fraud related courses.The case can be used as a stepping stone to emphasize the importance of sound corporate governance structure and how good governance practices and effective internal controls can be used proactively to prevent this kind of fraud.This puts spotlight on the board of directors' fiduciary duty towards shareholders.

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They also realize how accounting standards and tax codes have contributed to the tremendous growth of stock options and even encouraged backdating practices.