Guity: Stock Option Scam
November 2, 2006 11:14

The former general counsel of leading voicemail software maker Comverse Technology Inc. pleaded guilty to a scheme to pocket millions of dollars by backdating stock options. Prosecutors stock options were made more lucrative by backdating their exercise price to a low point in the stock's value. Usually, a stock option's exercise price coincides with the market value at the time of a grant to give the recipient an incentive to drive the price higher. (Yahoo)