Adult sex sites no webcams - Comverse backdating scandal
Clearly, the Enron trials have not closed the book on corporate fraud.A new boardroom scandal is roiling Wall Street: stock options backdating.Plaintiffs' law firms have already filed a number of securities class actions and derivative lawsuits on the backdating issue."It’s pretty sad to see that so many executives, after convincing their shareholders to approve stock incentive plans, thought they could get away with rewriting the terms," said Peter Pease, a partner at Berman De Valerio.
That exercise price, or strike price, usually takes one of three forms: the closing price on the day of the grant; an average of the highs and lows of the day; or the closing price from the previous day.
The lower the strike price, the greater the potential for making money when exercising the options.
But if the grant date was a month earlier and the stock then was at, say $20, the options would bring in an extra $1 million."Such backdating is not necessarily illegal.
But it could lead to a false disclosure, which may, in turn, violate federal securities laws.
(One who rose above it without any damage to his reputation was Steve Jobs, though two other Applites were fined and had to pay millions.) Kobi Alexander may have suspected that Comverse would be handled differently because of the companys size, and the extent of malfeasance associated with him.
Be that as it may, rather than face the music, a decade ago he fled to Namibia, an African nation with which the United States has no extradition agreement.
Its known that when Kobi Alexander landed back in the United States last Wednesday after 10 years on the lam, he was detained – and instead of being released as he expected, he was kept behind bars because, the Brooklyn judge explained, hes a flight risk. He became one of thousands of American market animals who were caught backdating stock options, which boiled down into ill-gotten gains – investors thought the executives were being rewarded for good performance.
The great majority of executives caught in the backdating scandals were fined; some were never charged at all.
Take this example, from The Wall Street Journal, which began investigating the practice last fall: "Suppose an executive gets 100,000 options on a day when the stock is at .