Feeds

Kumar to return $800m to CA shareholders

Assuming he lives to be 250 years old

Beginner's guide to SSL certificates

Sanjay Kumar, the disgraced former CEO of Computer Associates, is to pay $798.6m in restitution to victims of the company's $2.2bn accounting fraud. Well, he would if had the money...

Kumar will liquidate his assets and family trusts to pay at least $52m before being whisked off in August to begin a 12-year prison term. CA has already paid $225m in restitution, which has yet to be doled out to shareholders. The paybacks will kick-off in July when Kumar's first tranche is expected, according to reports.

After serving jail-time, Kumar is obliged to pay 20 per cent of his annual income to pay off the remaining $748m. The government does not expect to see him pay the full amount.

US District Court Judge Leo Glasser for the Eastern District of New York approved the terms today.

Kumar was sentenced to 12 years in prison and fined $8m by Glasser in November. Under today's settlement, the fine is dropped to ensure that the amount that goes to shareholders is maximised.

Kumar pled guilty to instituting and enforcing CA's "35-day month," where company software license revenue was backdated to closed fiscal quarters to meet Wall Street profit expectations and ensure massive bonuses for him and some other senior staff.. He was also convicted for obstruction of justice for lying to to investigators and authorizing bribes to potential trial witnesses when the fraud was first exposed.

Computer Associates, now called CA Inc., was forced to restate five years of figures, costing the company an extra $15m.

Kumar is also facing a $14.9m lawsuit filed by CA seeking to recover legal fees the company paid to defend him. ®

The next step in data security

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
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
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.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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.