Teaneck, NJ - A man and two other former executives of a software company were charged with orchestrating a scheme to cheat the company of millions of dollars by manipulating stock options.
David Kreinberg, who resigned as chief financial officer of Comverse Technology Inc. amid an internal probe into accounting irregularities, made nearly $1 million through the scheme, according to a criminal complaint. And Kreinberg, who is known in Teaneck for his philanthropy to Jewish causes, allegedly helped his boss, CEO Jacob "Kobi" Alexander, cheat the company out of $6.4 million.
At first Alexander, 54, has fled the country, and a warrant was issued for his arrest. In a related action, the government seized $45 million from two investment accounts held in the United States in Alexander's name. Authorities allege that Alexander, who made a total of more than $130 million through stock options at Comverse, transferred $57 million to accounts in Israel to conceal the funds.
Now Kreinberg, 41, and Sorin, 56, of New York, surrenderd. They were arraigned before U.S. Magistrate Viktor Pohorelsky in Brooklyn, who set bail at $1 million and revoked the passports of each. Kreinberg, dressed in a maroon golf shirt and black slacks, stood stiffly next to his attorney with his arms crossed during the brief arraignment and spoke only to confirm his signature on papers that put his house up for his bail.
To his neighbors in Teaneck, Kreinberg is known as a philanthropist, giving time and money to the local Jewish community, including local synagogues and religious schools.
"He's very involved in a number of local organizations," said a family friend who asked not to be identified. "Their home is always open to organizations for fund-raisers."
Kreinberg was listed as treasurer of Yeshiva of North Jersey in River Edge.