Stock options are the right, but not the obligation, to purchase stock at a specific price no matter the current price.By backdating options, a company can assure a windfall to the recipients.Jacob "Kobi" Alexander (born May 4, 1952) is an Israeli-American businessman.
The SEC looked into Apple's revelation that they had issued stock options to a variety of employees, including Steve Jobs and other executives, that tied the options to a date prior to that on which the options were granted, so called .In 2006, he was charged with multiple counts of fraud and related offenses pertaining to irregularities in trading of Comverse stock; he subsequently fled to Namibia, a nation which has no extradition treaty with the US. He was subsequently sentenced to 30 months in prison.Subsequently, Alexander arranged for his return to the U. Alexander founded Comverse Technology (NASDAQ: CMVT) in 1982 and built it up from a 3-person Israeli startup to employing over 5,000, becoming the leading provider of software and systems for telecommunication companies worldwide.By the Journal's estimation, the odds of such an event occurring randomly were, in some cases, more than 1,000,000,000-to-1.As the Securities and Exchange Commission and various U. attorneys' offices began investigating the phenomenon, it became clear that numerous companies, especially the high-tech and startup ventures where stock options play such an integral role in attracting and retaining employees, had backdated their options grants to coincide with a periodic low in their respective companies' share values.The Wall Street Journal reports that the Justice Department has ended its criminal investigation into whether Apple executives broke the law when they backdated some options without proper accounting and disclosure.Neither Apple nor the Justice Department has made a statement confirming that the investigation is over, but lawyers representing some of those under a cloud told the Journal that they were informed the probe is finished.Comverse’s success led to its inclusion in the NASDAQ 100 and S&P 500 indices.Alexander was born on May 4, 1952, into a middle-class family in Kfar Saba, Israel.Reyes' Indictment and Trial Among the companies swept up in the backdating frenzy was Brocade Communications, a Silicon Valley data storage networking provider. With the Department of Justice and the white-collar criminal defense bar looking on nervously, the case proceeded to trial in June.Based on the company's own internal investigation (conducted by outside counsel), Brocade determined that backdating had occurred from 2000 to 2004. Throughout the trial, both sides seemed to focus on the critical issue of intent, i.e., whether Reyes willfully oversaw the backdating of stock options with the intent to defraud shareholders.