Feeds

Sanjay Kumar pleads guilty to CA fraud

Former CEO puts hands up

The essential guide to IT transformation

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. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned 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.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.