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Ex-Leader of Computer Associates Gets 12-Year Sentence and Fine

Ex-Leader of Computer Associates Gets 12-Year Sentence and Fine

by Rick Turoczy on November 3, 2006

The former chief executive of Computer Associates International, Sanjay Kumar, was sentenced yesterday to 12 years in prison for orchestrating a $2.2 billion accounting fraud at the software company. He was also fined $8 million.

The four-year investigation of Computer Associates, now CA, centered on backdated contracts that artificially inflated profits. Computer Associates, based in Islandia, N.Y., entered into a deferred prosecution agreement to avoid indictment in 2004; in it, the company agreed to pay $225 million to a shareholder restitution fund and agreed to government monitoring for two years.

Seven other Computer Associates executives have pleaded guilty to fraud charges. Stephen Richards, the company’s former top salesman, pleaded guilty in April alongside Mr. Kumar; he is to be sentenced on Nov. 14.

Ex-Leader of Computer Associates Gets 12-Year Sentence and Fine

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