The former chief and founder of Comverse Technology Inc., Jacob "Kobi" Alexander was arrested in Namibia on Wednesday, where he awaits extradition to the U.S. to face criminal charges for his role in an options backdating scheme, according to Reuters. After an international manhunt, authorities in the African nation arrested Alexander in the capital city of Windhoek after a court there issued a warrant at the request of the U.S. government, according to U.S. prosecutors. According to the indictment, Alexander and others at the company based in Woodbury, New York, backdated millions of stock options to days when the shares were trading at lower prices, allowing executives to reap substantial gains. The indictment also seeks the forfeiture of $138 million in Alexander's assets. "We are very grateful for the Namibians' swift action and commend them for their vigilance," Roslynn Mauskopf, the U.S. Attorney for the Eastern District of New York, said in a statement. "We intend promptly to seek the return of the defendant to the United States to answer the serious charges now pending against him." Prosecutors said they expect Alexander to be brought before a Namibian court within 48 hours. Alexander is charged with 32 criminal counts ranging from conspiracy to securities fraud and money laundering. He faces a maximum sentence of 25 years in prison if convicted of the most serious charge -- securities fraud, the U.S. Attorney's office said. The indictment further alleges that Alexander and others created fictitious names to generate "hundreds of thousands of backdated options, which they put in a secret "slush" created to evade the requirements of the company's options plans. Scores of U.S. companies are under federal scrutiny for possibly manipulating the grant dates and exercise prices of stock options given to senior executives. A spokesman at Comverse declined to comment and an attorney for Alexander could not immediately be reached. Two former Comverse officers, finance chief David Kreinberg and senior general counsel William Sorin, were charged with fraud after surrendering to the FBI on Aug. 9. All three men left the company on May 1, 2006, after Comverse said it was conducting a review of past stock options grants. Comverse shares rose 34 cents, or 1.58 percent, to $21.85 on the Nasdaq stock market.
