Feeds

Kumar to return $800m to CA shareholders

Assuming he lives to be 250 years old

Build a business case: developing custom apps

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. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
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
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 ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.