Sanjay Kumar, the former chief executive of Computer Associates International (now called CA Inc.) has been sentenced to 12 years in prison and fined $8 million for his guilty plea to charges of securities fraud and obstruction of justice.
Prosecutors say that Kumar created “35-day months” in order to book additional revenue after a quarter ended and the books should have been closed. He then engaged in a cover-up scheme meant to silence a witness to the accounting misdeeds. It is believed that the fraud cause the company to misstate revenue by $2.2 billion
Kumar was born into poverty in Sri Lanka, but came to the United States and became the chief executive officer of the world’s second largest maker of mainframe software He received stock worth hundreds of millions of dollars. He could have received a life sentence, but the judge did not feel that was necessary. With an opportunity to be released early, he will likely serve ten years in prison. Kumar must report to prison at the end of February.
I am happy to receive documents on behalf...
17 Feb 07 at 11:48 pm
Follow up: CFO got busted too
http://www.executivefraud.com/index.php/2007/02/17/former_ca_inc_cfo_receives_prison_senten