Feeds

Sanjay Kumar pleads guilty to CA fraud

Former CEO puts hands up

Combat fraud and increase customer satisfaction

Computer Associates (CA) former CEO and head of sales both added their guilty pleas to those of five other former company executives yesterday, admitting fraud, obstructing justice, and perjury.

Former CEO Sanjay Kumar and his head of worldwide sales Stephen Richards presided over a "systemic, company-wide practice of falsely and fraudulently recording and reporting...fiscal quarter revenue," the US Attorney's Office said in a statement.

Roslynn Mauskopf, United States Attorney for the Eastern District of New York, said the guilty pleas were the result of an investigation into "a culture of corruption and fraud at Computer Associates".

Now under new management, CA said in an announcement: "We are a dramatically different organisation than we were two years ago, when both Mr Kumar and Mr Richards left the company."

It had undergone a "transformation" and had put in place "infrastructure that promotes integrity, compliance and good governance", with which it had made "significant progress".

The guilty pair join other compadres, including a former chief financial officer and former general counsel, who have already admitted their part in the fraud.

The seven executives were charged with operating a "35 day" accounting month in order to cram their books with enough sales to meet sales forecasts. This was in 2000, a boom time for the computer industry.

Kumar and Richards also admitted lying to their lawyers about the fraud, and telling porkies to federal investigators when they came round asking awkward questions about proper accounting practices, probity, corporate governance, and such like.

Kumar is also charged with bribing someone with millions of dollars to prevent him reporting the fraud to the authorities.

Sentencing is scheduled for 12 September 2006. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.