Former Comverse general counsel Sorin sentenced to jail

US Federal Judge Nicholas Garaufis also ordered William Sorin to pay $51.8 million in restitution.

Former Comverse Technology Inc. (Pink Sheets: CMVT.PK) senior general counsel William F. Sorin has been sentenced to a year and a day in prison for his involvement in the company’s options backdating affair. He pled guilty in November to a conspiracy charge in the scheme.

US Federal District Court for the Eastern District of New York Judge Nicholas G. Garaufis also sentenced Sorin to three years three years supervised release following the completion of his prison term. The judge ordered Sorin to pay $51.8 million in restitution but stayed the implementation of that order until the parallel civil action by the US Securities and Exchange Commission (SEC) is resolved. Under federal law, Sorin is jointly and severally liable for the full amount, even though other defendants are expected to be ordered to pay restitution in the matter.

In January, Sorin settled with the SEC, agreeing to pay $3.1 million in disgorgement, prejudgment interest and a civil penalty.

Sorin said, “I have pleaded guilty to a federal crime. I have no excuse for my conduct. The very fact that I find myself before this court is extremely painful for me and my family."

Sorin is one of two former Comverse executives who have pleaded guilty to criminal charges in the matter. Former Comverse CFO David Kreinberg also pleaded guilty to securities fraud and conspiracy to commit securities fraud, mail fraud and wire fraud at a hearing last year. Sorin, Kreinberg and former Comverse chairman and CEO Kobi Alexander were originally charged last August with conspiracy to commit mail fraud, securities fraud and wire fraud in an alleged scheme to improperly backdate options at the company. The SEC also has separately filed civil charges against the men.

Alexander has not pled guilty or appeared before a US court, because he fled to Namibia last October, and the US government is seeking his extradition. A Namibian court will hear the extradition request on June 8.

Published by Globes [online], Israel business news - www.globes.co.il - on May 13, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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