CA's Kumar pleads not guilty to fraud
Print storyHouse covers $5m bond
Posted in Software, 23rd September 2004 20:06 GMT
Understand how application security is evolving
Former Computer Associates boss Sanjay Kumar today pleaded not guilty to fraud and a host of other charges thrown at the onetime software kingpin by the Feds.
The US DoJ (Department of Justice) this week unsealed a 10-count indictment against Kumar and former CA head of sales Stephen Richards. Both men could face up to a century-long prison sentence for seccurities fraud, obstruction of justice and conspiracy. The two executives, however, deny any wrongdoing in the accounting scandal that has seen CA restate $2.2bn in earnings.
CA has agreed to send $225m back to shareholders as a result of the now infamous "35-day month" accounting scheme in which the company kept its books open longer than is legally allowed to pad in extra revenue.
Kumar and Richards put their homes up as collateral for their $5m bond. Kumar's lawyer did most of the talking during his arraignment and suggested that the former CA chief had been unfairly targeted by the government.
CA will have a government watchdog looking over its book for the next 18 months and is trying to put years of bad bookings and investigations behind it. ®
Related stories
Former CA Chief Kumar indicted as firm coughs up $225m
Former CA boss Kumar exits stage left
CA 2003 results delayed
CA puts 35-day month and $2.2bn in revenue behind it
Solving on-premise email challenges with on-demand services
The business case for application security
Airport insecurity: the case of lost laptops
The best practices guide for application security
Impact of the dramatic increase in devices on the cost to support
Google code cloud punts on-demand embarrassment
Microsoft weighs next-phase in open-source support
iTunes minus the player: hack your Apple beats
Oracle plans cloud strategy