By Patricia Hurtado
Oct. 24 (Bloomberg) -- Comverse Technology Inc. ex-chief financial officer David Kreinberg pleaded guilty to conspiracy and securities fraud as part of the U.S. investigation of illegal backdating and manipulation of employee stock option grants.
(Update2)Kreinberg, 41, is the first executive to plead guilty in the biggest probe of corporate wrongdoing since late trading of mutual funds three years ago led to $4.3 billion in penalties. More than 140 U.S. companies have disclosed internal or government inquiries into the backdating of options.
``Your honor, I knew at the time that my actions and agreement with others at the company, and the actions I've described, were wrong,'' Kreinberg told U.S. District Judge Nicholas Garaufis today in Brooklyn federal court.
Assistant U.S. Attorney Linda Lacewell said Kreinberg faces up to 15 years in prison for both counts, fines of up to $1.25 million and restitution of $51 million. Kreinberg's former boss, ex-Comverse Chief Executive Officer Jacob ``Kobi'' Alexander, was arrested in Namibia last month and is the subject of a U.S. extradition request.
Prosecutors are trying to persuade the government of Namibia to return Alexander to the U.S. for trial to face charges related to stock-option backdating, including conspiracy, securities fraud, making false filings to U.S. regulators and money laundering.
