Ex-CA chief goes down for 12 years

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By  Published  November 10, 2006

FORMER Computer Associates CEO Sanjay Kumar has been sentenced to 12 years in prison and fined US$8million for his part in the company’s long-running bookkeeping scandal — one of the largest accounting fraud schemes in US history.

Kumar was sentenced on November 2 at a US District Court in New York for his conviction on eight counts of securities fraud, obstruction of justice, and false statements.

Kumar is one of a number of former executives of Computer Associates — now known as just CA — charged in relation to the fraud, through which the company prematurely reported over US$2 billion in revenue between 1999 and 2000.

The crime resulted in losses to the firm’s shareholders in excess of US$400million.

Kumar pleaded guilty in April to fraudulently inflating his company’s quarterly revenue and earnings by keeping the books open past quarter-ends to make it look like the firm had exceeded projections.

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