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Executive pleads guilty to fraud

NEW YORK (Reuters) — William Sorin, the former general counsel of Comverse Technology Inc., pleaded guilty yesterday to a US criminal conspiracy charge related to a stock options backdating scheme.Sorin, 57, pleaded guilty to one count of conspiracy to commit securities fraud, mail fraud and wire fraud at a hearing in federal court in Brooklyn before US District Judge Nicholas Garaufis. The charge carries a maximum sentence of five years in prison.

Sorin is the second of three Comverse executives, charged in an options back-dating case, to admit guilt. Last month, David Kreinberg, the company’s former chief financial officer, pleaded guilty to one count of conspiracy and one count of securities fraud.

Prosecutors contend that Sorin, Kreinberg and former chief executive Jacob (Kobi) Alexander participated in a scheme that allowed them to reap millions of dollars in profits by altering the grant dates of stock option awards.

Sorin told the judge that he knew the company was issuing backdated options. The practice began in late 1990, he said.

Sentencing was set for February 9.