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THE SKEDADDLE OPTION

August 16, 2006

The Wall Street Journal law blog reports that the option backdating scandal has created its first fugitive:

Comverse Technology’s former CEO, Kobi Alexander, is regarded as a fugitive by the U.S. government, which last week charged him with conspiracy related to backdated stock options, his attorney said. Here’s the WSJ story.

Robert Morvillo of Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer said he last spoke to Alexander about two weeks ago, when Alexander was in Israel as part of a regular summer trip to his native country (and where Comverse has operations). But now Morvillo says he has no idea of his whereabouts.

With 90+ companies enmeshed in the backdating fiasco, those countries without extradition treaties may experience boom times.

In other backdating news, the Wall Street Journal reports ($link) that some of the companies with backdated option problems were fervent opponents of requirements to expense stock options. Well, if you are willing to cheat your shareholders, why wouldn't you also want to pull the wool over their eyes?

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