Feeds

Sanjay Kumar pleads guilty to CA fraud

Former CEO puts hands up

Eight steps to building an HP BladeSystem

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. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.