CA's Kumar pleads not guilty to fraud
House covers $5m bond
Former Computer Associates boss Sanjay Kumar today pleaded not guilty to fraud and a host of other charges thrown at the onetime software kingpin by the Feds.
The US DoJ (Department of Justice) this week unsealed a 10-count indictment against Kumar and former CA head of sales Stephen Richards. Both men could face up to a century-long prison sentence for seccurities fraud, obstruction of justice and conspiracy. The two executives, however, deny any wrongdoing in the accounting scandal that has seen CA restate $2.2bn in earnings.
CA has agreed to send $225m back to shareholders as a result of the now infamous "35-day month" accounting scheme in which the company kept its books open longer than is legally allowed to pad in extra revenue.
Kumar and Richards put their homes up as collateral for their $5m bond. Kumar's lawyer did most of the talking during his arraignment and suggested that the former CA chief had been unfairly targeted by the government.
CA will have a government watchdog looking over its book for the next 18 months and is trying to put years of bad bookings and investigations behind it. ®