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Lie Expects Scandal To Be Widespread

The widespread options backdating scandal is gaining new momentum after the Department of Justice charged executives from Comverse Technology with securities fraud for profiting from manipulated stock options. It was the second set of high-profile arrests resulting from the government's wide probe into options backdating. For Corporate America, it should serve as a wake up call: the government is on a mission to prosecute wrongdoers in the latest scandal to hit Wall Street. ERIK LIE, assistant professor of finance at the University of Iowa - whose research put a spotlight on the granting of options to executives prior to big run-ups in the stock price - said he expects the number of companies involved in the scandal to grow.


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