Extradition from Israel to the United States—Jacob Alexander

The former CEO of Comverse Technology (not to be confused with Converse), Jacob Alexander, “hasn’t been seen in two weeks, since right before Mr. Alexander was charged with criminal securities fraud and backdating of stock options.”^[1] According to the Wall Street Journal, the government alleges that Mr. Alexander “transferred $57 million to Israel in the last two weeks of July.”^[2]

When a complaint was filed against Mr. Alexander, CFO David Kreinbar, and former senior general counsel William Sorin, the latter two were arrested, but Mr. Alexander did not appear.^[3] Robert Nardoza, a spokesman for the US Attorney’s Office, says that a warrant has been issued for his arrest, but it is widely believed that Mr. Alexander, still an Israeli citizen, has “flown back to Israel in an attempt to avoid prosecution.”^[4] His true whereabouts, however, are not known.^[5]

There is indeed an extradition treaty between the United States and Israel, as we explored when we discussed Ze’ev Rosenstein. The 1962 treaty contains a laundry list of offenses for which extradition can be had.^[6] Among these offenses is corporate fraud.

If Mr. Alexander ends up in Armenia by some quirk of fate, the United States will find it difficult to extradite him, as people in California are discovering. A couple of months after we discussed Artur Khanzadyan, the LA Daily News is pointing out that there seems to be a trend of individuals of Armenian descent fleeing back to that country because there is no extradition treaty between the US and Armenia.^[7] Of the estimated 50 to 75 fugitives “the FBI believes are living in Armenia and wanted by Southern California law enforcement agencies for arrest or questioning,” only five have been returned since 2004 through ad hoc cooperation.^[8]

Incidentally, Mr. Khanzadyan’s trial in Armenia is scheduled to begin August 22, but the family of the women he allegedly murdered is “boycotting the trial, saying [he] should be tried in the United States.”^[9]

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[1] Comverse Ex-CEO on the Lam, Red Herring, Aug. 15, 2006.
[2] See Comverse’s Ex-CEO is a Fugitive WSJ, Aug. 15, 2006. (subscription only); see also Kristina Fiore, Report: Former Comverse CEO Considered a Fugitive, Newsday, Aug. 15, 2006.
[3] Fiore, supra note 2.
[4] Red Herring, supra note 1.
[5] Id.
[6] Extradition Treaty, Dec. 10, 1962, U.S.-Israel, art. II, 14 U.S.T. 1707.
[7] See Alex Dobuzinskis, US, Armenia Lack Extradition Pact, LA Daily News, Aug. 14, 2006.
[8] Id.
[9] Eugene Tong, Parents Fear Trial Abroad Will Never Bring Closure, LA Daily News, Aug. 14, 2006.