 In 2006 , Comverse Technology was involved in an options backdating scandal . In May of that year , company founder and CEO Jacob Alexander stepped down from his position . Alexander , finance chief David <unk> , and former senior general counsel William Sorin ( both of whom had also stepped down ) were charged in July 2006 in the United States District Court for the Eastern District of New York with multiple counts of conspiracy , fraud , money laundering and making false filings to the Securities and Exchange Commission ( SEC ) , all related to alleged options backdating or other actions related to stock options between 1998 and 2006 . The accusations against the three included the backdating of options to when Comverse stock had been trading at low prices , the use of fake names of option holders , and the creation of secret funds in which to hold the illicit gains . The SEC also filed civil charges against the three , for filing false annual and quarterly financial reports and proxy statements from 1991 to 2005 . 
