Feeds

Ex-CA exec pleads guilty in hush money handout scandal

So much for compliance

Top 5 reasons to deploy VMware with Tegile

A former Computer Associates International executive has pleaded guilty to obstruction of justice after he attempted to buy customers' silence over a company accounting scandal.

Thomas Bennett, was a former business development executive with Computer Associates, now known as CA. With 15,000 employees, CA is the world's fifth largest software company.

US prosecutors alleged Bennett conspired with other executives to inflate the company's revenue figures in 1999 and 2000 through business deals that improperly accounted revenue.

Once news of the company's accounting misdeeds broke, prosecutors claim then chief executive Sanjay Kumar authorized Bennett to pay millions of dollars to certain clients to stop them from reporting the fraud to the FBI and the Securities and Exchange Commission (SEC).

Bennett now faces a maximum five years federal prison sentence and a $250,000 fine. Kumar and the company's former head of worldwide sales Stephen Richards, meanwhile, have already pleaded guilty to obstruction of justice and securities charges and face up to 20 years in prison, with sentencing due in September.

Separately, CA, has requested more time from the SEC to file its end-of-year financial report. Ironically, CA, which is busy touting its software as a solution for customers managing the complexities of the Sarbanes Oxley Act, has cited Sarbanes Oxley as the reason for delay.

"CA will request the extension because it does not expect to complete the preparation of its consolidated financial statements and management's assessment of internal control over financial reporting as required by Section 404 of the Sarbanes-Oxley Act of 2002 by the initial filing deadline of June 14, 2006," the company said in a statement.®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.