Comverse technology stock option backdating

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In CTI's case, the heavy price paid by top management and the company vividly illustrates to students the importance of operating a business within legal boundaries.COMVERSE TECHNOLOGY INC Background The case is based on CTI's proxy statements for the 1995-2005 period and the lawsuit, Securities and Exchange Commission v.CASE DESCRIPTION Stock option backdating involves granting stock options at a later date than shown on record to avoid taxes and recording expense.In recent years, stock option backdating schemes have been widely reported by the media.The case has a difficulty level of four and is appropriate for senior level undergraduate students and first year MBA students.At the intermediate level, the case can be used in financial accounting, auditing, or fraud related courses.William Sorin also agreed to a permanent bar from acting as an officer or director of a public company, the SEC said.

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Finally, the lesson learned from the case is that though backdating is perfectly legal, hiding it has serious accounting, regulatory, and tax ramifications.As a result of these investigations, SEC has filed lawsuits against more than 100 companies. Like any other technology company, CTI liberally used stock options to recruit and retain key employees.However, its top executives also ran a secret option backdating scheme for several years.As part of his SEC settlement, Sorin agreed to surrender

Finally, the lesson learned from the case is that though backdating is perfectly legal, hiding it has serious accounting, regulatory, and tax ramifications.

As a result of these investigations, SEC has filed lawsuits against more than 100 companies. Like any other technology company, CTI liberally used stock options to recruit and retain key employees.

However, its top executives also ran a secret option backdating scheme for several years.

As part of his SEC settlement, Sorin agreed to surrender $1.67 million in ill-gotten gains and pay a $600,000 civil penalty and $817,509 in prejudgment interest.

In November, Sorin pleaded guilty to one criminal count of conspiracy to commit securities fraud, mail fraud and wire fraud as part of a plea agreement.

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Finally, the lesson learned from the case is that though backdating is perfectly legal, hiding it has serious accounting, regulatory, and tax ramifications.As a result of these investigations, SEC has filed lawsuits against more than 100 companies. Like any other technology company, CTI liberally used stock options to recruit and retain key employees.However, its top executives also ran a secret option backdating scheme for several years.As part of his SEC settlement, Sorin agreed to surrender $1.67 million in ill-gotten gains and pay a $600,000 civil penalty and $817,509 in prejudgment interest.In November, Sorin pleaded guilty to one criminal count of conspiracy to commit securities fraud, mail fraud and wire fraud as part of a plea agreement.

.67 million in ill-gotten gains and pay a 0,000 civil penalty and 7,509 in prejudgment interest.In November, Sorin pleaded guilty to one criminal count of conspiracy to commit securities fraud, mail fraud and wire fraud as part of a plea agreement.

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