Tech Exec On The Run From The Law
from the how-to-stand-out-from-the-criminals dept
If you hadn’t noticed lately, it seems like just about every publicly traded tech company has been dealing with accusations of backdating options. Usually, the stories show up in the press briefly and then disappear as no one really cares that much. While there have been a few stories of people getting arrested over the backdating issue, it seems like most of the tech world is still waiting to see just how serious an issue this becomes. While it has caused a few people to lose their jobs, it’s still a bit surprising to see the CEO of a large tech company go on the lam. But that’s just what happened to the ex-CEO of Comverse — who has apparently disappeared (just after he apparently transferred millions of dollars out of American banks). The details of the Comverse story sound a little worse — as they apparently set up some sort of stock option slush fund for employees, which was kept secret from the board. Still, with so many companies involved, the various arrests and now an exec on the run, you get the feeling this is a story that’s only going to get a lot more interesting in the next few months. Already, there’s talk that it’s simply a witch hunt by an SEC looking for people to go after, rather than shareholders to protect.