London - Jacob "Kobi" Alexander, the former Comverse Technology chief executive wanted in the US for securities fraud, formed a company in Namibia to invest in construction, tourism and agriculture.
Kobi Alexander Enterprises had already developed two projects in Walvis Bay involving the construction of 200 houses for low-income earners, the company said in an advertisement published Friday in The Namibian, a Windhoek-based newspaper. The company's motto is "Putting Namibia First".
"Kobi Alexander, its founder, brings with him a wealth of business acumen," the advertisement said. "He is the founder of Comverse Technology, the world's leading supplier of enhanced services for telecommunications companies."
Alexander was arrested in Namibia in September. He is free there on bail while the US seeks his return to face 35 criminal counts related to stock option backdating, conspiracy, securities fraud, money laundering and bribery. He said he would plead not guilty to those charges.
An extradition hearing will be heard in a Namibian court from April 25 to April 27. At least 200 US companies have disclosed internal or federal probes into whether they inflated the value of options awarded to executives by backdating or timing the grants to coincide with days when the stock price was low.
Comverse's former general counsel, William Sorin, on January 10 agreed to pay $3.1 million (R21.9 million) to settle US Securities and Exchange Commission accusations that he conspired with Alexander to backdate stock options. He didn't admit or deny wrongdoing. David Kreinberg, Comverse's former finance chief, pleaded guilty in October to conspiracy and securities fraud.
Alexander, who has US residency, was declared a fugitive in August, when he was first accused of fraud conspiracy. After leaving the US, he travelled via Israel to Namibia with his wife Hanna and three children, arriving at the end of July.
Before being arrested by Namibian police September 27, Alexander transferred N$120 million (the same amount in rands) to Namibia and was granted a two-year work permit on a pledge to spend N$300 million.
Alexander said in court papers filed in Windhoek on October 4 that he had invested N$11 million in the country, including N$3.4 million in low-cost housing in the western town of Swakopmund, because of demand created by the opening of the Langer Heinrich uranium mine.
Alexander invested another N$5.9 million in an car body shop business in Windhoek and bought a N$3.5 million house. He enrolled his children in the Windhoek International School, where fees last year ranged between N$18 000 and N$118 000 a year. "I have invested responsibly and with a view to engaging previously disadvantaged Namibians," Alexander said. - Bloomberg