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.®

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.