Ex-CA chief goes down for 12 years
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.