It is reported that 54-year-old Jacob 'Kobi' Alexander, the Israeli-born millionaire founder of computer software company Comverse Technology Inc, has been on the US Federal Bureau of Investigations' 'Most Wanted' list since July 31.

The Namibian Police arrested Alexander in Windhoek yesterday afternoon, Ministry of Justice official Dennis Khama confirmed to The Namibian yesterday evening.

Khama, who works with extradition matters in the Justice Ministry, said Alexander was arrested after the Namibian Government received a request from the United States government for a provisional warrant for Alexander's arrest to be issued and executed.

It was expected that Namibia would soon receive a formal extradition request from the United States, Khama said.

He added that Alexander would have to appear in court in Namibia within 48 hours after his arrest.

Alexander appeared in the Windhoek Magistrate's Court in Katutura late yesterday afternoon, The Namibian was informed by another source.

He was then taken to the Windhoek Central Prison, where he was set to spend the night.

Alexander is the former Chief Executive Officer of Comverse Technology Inc, a leading maker of telecommunications software.

According to The Wall Street Journal, US authorities located Alexander in Namibia by tracking bank transactions.

The Journal also reported that the US authorities issued a warrant for Alexander's arrest on July 31, after he failed to turn up in court to answer charges of securities fraud.

Shortly after the warrant was issued, US authorities charged Alexander in New York with counts of conspiracy to commit fraud.

According to a notice issued by the US Federal Bureau of Investigations in a bid to establish Alexander's whereabouts, he "allegedly had a role in orchestrating a scheme to manipulate the granting of millions of dollars worth of company stock options to himself, his co-conspirators, and other employees".

"Alexander was the founder and former chief executive officer of the company (Comverse) and, along with two accomplices who are in custody, allegedly orchestrated the scheme by fraudulently backdating options and operating a stock options slush fund," the FBI states.

The Associated Press also reported late yesterday that US officials had announced Alexander's arrest in Namibia.

According to AP, US Attorney Roslynn Mauskopf credited local officials in Namibia for assisting the FBI in the capture.

"We are very grateful for the Namibians' swift action and commend them for their vigilance," she said.

Mauskopf said she would seek Alexander's swift extradition to face charges in federal court in Brooklyn, New York City.

An international manhunt for Alexander was launched in late July shortly before US authorities unsealed a criminal complaint accusing Alexander and two other former top Comverse executives of secretly manipulating stock options for personal profit.

Before he disappeared, Alexander, who has dual citizenship in the United States and Israel, allegedly transferred US$57 million (about N$437 million) to Israel, fueling speculation he may have fled there.

News reports in Israel have since then speculated that he may have been hiding out in a small Sri Lankan fishing village.

The two other men being accused with Alexander, Comverse's former finance chief David Kreinberg and former senior general counsel William Sorin, surrendered in August and were released on bail of US$1 million (about N$7,68 million) each.

The complaint unsealed in federal court in the US accuses the three men of making stock options 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.

From 1991 through 2005, Alexander exercised options and sold stocks worth approximately US$150 million (N$1,152 billion), making US$138 million (N$1,05 billion) profit, according to the complaint.

Of that, about $6,4 million (N$49,9 million) was generated by backdating options, it said.

Prosecutors allege Kreinberg and Sorin earned about US$1 million (N$7,6 million) each on backdated options.

In addition, the company awarded thousands of stock options to fictional employees, then secretly transferred the awards to an internal account under the name IM Fanton, which stood for phantom, court papers said.

The scheme allowed Alexander to award those options to real "favoured employees" and to himself without board of directors approval, AP reported the papers added.

According to a statement issued by the US Attorney's office in New York yesterday, Alexander faces a maximum sentence of 25 years in prison if convicted on the most serious charge that he is facing, which is securities fraud, Reuters further reported.

The indictment against him also seeks an order for the forfeiture of about US$138 million (N$1,05 billion) of Alexander's assets, Reuters reported.

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