Where's the Sex Tape, Comverse?
Presented (mostly) without comment because this is going far outside of my comfortable radius of expertise.
Suspicious government activity, accounting scandals, and employees being alienated. Well all we need is a sex tape and this will get some attention. Anything off here or am I reaching?
Ex-Attorney General John Ashcroft and FBI Director Robert Mueller were both warned on October 18, 2001 in a hand-delivered letter from 15 local, state and federal law enforcement officials, who complained that “law enforcement’s current electronic surveillance capabilities are less effective today than they were at the time CALEA was enacted.”
Congress insists the equipment it permits to be installed is secure. But the complaint about this system is that the wiretap computer programs made by Comverse have, in effect, a back door through which wiretaps themselves can be intercepted by unauthorized parties.
In this case, the unauthorized parties is the Israeli Mossad and through them, the government and commercial interests of Israel itself.
Adding to the suspicions is the fact that in Israel, Comverse works closely with the Israeli government, and under special programs and gets reimbursed for up to 50 percent of its research and development costs by the Israeli Ministry of Industry and Trade. But investigators within the DEA, INS and FBI have all privately stated that to pursue or even suggest Israeli spying through Comverse is considered career suicide because of the enormous political and political power wielded by the Israeli lobby, the extremely pro-Israeli American television and print media and many Jewish financial organizations in the United States.
And sources say that while various F.B.I. inquiries into Comverse have been conducted over the years, they have been halted before the actual equipment has ever been thoroughly tested for leaks. A 1999 F.C.C. document indicates several government agencies expressed deep concerns that too many unauthorized non-law enforcement personnel can access the wiretap system. The FBI’s own small office in Chantilly, Virginia that actually oversees the CALEA wiretapping program, is among the most agitated about the Israeli ongoing threat.
It is the FBI’s office in Quantico, Virginia, that has jurisdiction over awarding contracts and buying intercept equipment. And for years, they have awarded the majority of the business to Comverse. A handful of former U.S. law enforcement officials involved in awarding Comverse lucrative U.S. government contracts over the years now work for the Israeli-based company.
Numerous sources say some of those individuals were asked to leave government service under what knowledgeable sources call “troublesome circumstances” that still remain under administrative review within the Justice Department.
(source) or @pakalert
Is this the same Comverse?
One might have thought that the accounting problems were the biggest threat to the life of Comverse Technology, but they aren’t the whole story. They are only the outer layer, the part exposed to the company’s investors.
In fact, as an employee who left recently testifies, the employees feel that the company is being ‘eaten up from inside.” The oustings and exits of senior managers have shaken the company’s headquarters in Ramat Hahayal to the core.
It’s as if there was a hostile takeover,” the former employee continues. “Not one from the outside, but by the managers, and without paying the shareholders. You get up one morning and discover that they have taken the company and shifted it to the US: Comverse, which was one of the symbols of Israeli high tech’s success, its flagship.”
The former employee’s feeling is based on a series of shock changes in personnel and mass desertions that left the so-called Israeli company almost bereft of Israeli managers. The top management led by Andre Dahan, a former Israeli who lives in New York, is purely American apart from one person (out of nine), Dror Bin, president of global products and operations.
Now might not be a good time for that.
Three years after getting caught in a huge stock-options backdating scandal, technology company Comverse appears to be nearing the end of its crisis. The company recently reported that it had come to an agreement with the U.S. Security and Exchange Commission, consenting to a permanent injunction over any future violations by the company of American securities laws.
Comverse will also have to meet its periodic reporting requirement to the SEC no later than Feb. 8, 2010.
The agreement acknowledges that Comverse neither admits nor denies the allegations that the SEC filed against the company, and no fines will be imposed. The settlement is subject to court approval.
Awesome, how many years of not filing financial statements did they get away with until someone decided that wasn't okay? Just curious.