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TOO BAD YOU CAN'T BACKDATE YOUR SENTENCE

October 24, 2006

The stock option backdating scandal has netted its first guilty plea. From the Wall Street Journal online ($link):

The former chief financial officer of Comverse Technology Inc., David Kreinberg, pleaded guilty to securities-fraud charges in federal court today, after agreeing to cooperate in the investigation of a scheme to make millions of dollars by manipulating stock options.

Mr. Kreinberg is the first person to plead guilty in the stock-options backdating scandal that has roiled executive suites across the country. More than 100 companies are under federal investigation, and a number of executives have lost their jobs.

While the indictment mentions tax issues, the charges in the plea deal are securities violations.

The indictment is here.

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