SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

   Technology StocksComputer Associates


Previous 10 Next 10 
To: David Lawrence who wrote (5196)9/22/2004 3:12:41 PM
From: TEDennis
   of 5232
 
Ex-Computer Associates CEO Kumar Indicted
September 22, 2004 3:02 PM ET

By FRANK ELTMAN

NEW YORK (AP) - Former Computer Associates International Inc. chairman and chief executive Sanjay Kumar has been charged with securities fraud, conspiracy and obstruction of justice in connection with a multibillion dollar accounting scandal at the software company.

The charges were unsealed Wednesday, after the company itself agreed to pay $225 million to shareholders as part of a settlement that allows it to defer criminal prosecution. That agreement also settles securities fraud charges brought by the Securities and Exchange Commission.

A 10-count grand jury indictment returned last Friday also charges Kumar with conspiracy to obstruct justice and levies the same charges against Stephen Richards, the company's former head of worldwide sales.

Under the highly unusual deal to defer prosecution, an outside monitor will track Computer Associates' financial reporting for the next 18 months.

Deputy Attorney General James Comey said the deferral will "give the company the opportunity to demonstrate that it has a culture that can be saved. Our focus is not on doing harm for harm's sake."

"If they don't take those steps, the consequences will be severe," Comey added.

Computer Associates chairman Lewis Ranieri called the agreements "a critical step in closing this deeply troubling chapter" in the company's history.

"Some former members of CA's management engaged in illegal activity," Ranieri said. "Violations of law and ethical standards, including securities fraud, obstructing a government investigation, and lying to CA's board of directors and CA's lawyers cannot be condoned. We fully support the government's efforts to bring all responsible parties to justice."

The company had earlier offered to settle the investigation for $10 million.

Also Wednesday, the company's former general counsel, Steven Woghin, pleaded guilty in federal court to conspiracy to commit securities fraud and obstruction of justice.

"Your honor, I am ashamed to be standing here today," he said. "It is entirely inconsistent with my behavior through a 30-year legal career."

Computer Associates, the world's fourth-largest software maker, restated its financial results from 2000 and 2001 in April to reflect $2.2 billion in revenue that was improperly booked.

Prosecutors referred to one practice as the "35-day month" because company accountants would extend the booking of revenues in the final month of a fiscal quarter days beyond the true end of the month.

"In many ways, this scheme is emblematic of the schemes of the late 1990s, motivated by the overwhelming desire to create the illusion of success," Comey said.

Three former executives admitted in April that they fraudulently recorded hundreds of millions of dollars worth of contracts in a conspiracy to inflate quarterly earnings. They entered guilty pleas under cooperation agreements that prosecutors called an important move toward indicting other high-ranking company executives.

Former chief financial officer Ira Zar, the third-highest-ranking executive after former chairman Charles B. Wang and Kumar, pleaded guilty to securities fraud and conspiracy to commit securities fraud and obstruct justice.

The company agreed Wednesday to help the government retrieve any compensation and bonuses found to be awarded based on fraudulent financial results. Three executives, including Wang and Kumar, split stock bonuses worth $1.1 billion in 1998.

According to the charges against him, Zar regularly met with high-level executives whom prosecutors described as Executive No. 1 and Executive No. 2. Zar conspired with the two to backdate contracts to boost the previous quarter's earnings, according to the charges.

Prosecutors have declined to comment on the identities of those two executives.

Along with Zar, former senior vice president of finance and administration David Kaplan and former vice president of finance David Rivard pleaded guilty in April to conspiracy to commit securities fraud and obstruct justice.

Rivard and Kaplan faced maximum sentences of 10 years in prison but likely will be sentenced to far less because they cooperated with authorities. Zar faced a maximum of 20 years in prison but also is likely will be sentenced to less.

Woghin's sentencing was set for Dec. 10. He could get up to five years on the first count and up to 20 years on the second. Both counts are subject to federal sentencing guidelines.

The SEC also filed actions in April against Zar, Rivard and Kaplan, charging them with committing accounting fraud. The three struck separate deals agreeing to disgorge the proceeds of their crimes and never again serve as officers of publicly traded companies.

The SEC said that during the company's 2000 fiscal year, Computer Associates "prematurely recognized" more than $1.4 billion in revenue from at least 116 contracts that had not yet been signed.

The Long Island-based company said it had billions of dollars in annual revenue in the late 1990s. Reported revenues plunged after the company changed its accounting practices in the face of increased outside scrutiny.

Computer Associates said a company audit was to be completed soon and another restatement of prior financial statements would be done if required.

"Although the company is unable to predict the scope or outcome of the continuing government investigation, it is possible that it could result in the institution of administrative, civil injunctive or criminal proceedings, including charges against the company and other officers of the company," Computer Associates said.

The company's shares fell 17 cents to $25.51 in afternoon trading on the New York Stock Exchange.

news.moneycentral.msn.com

Share RecommendKeepReplyMark as Last Read


To: TEDennis who wrote (5203)9/24/2004 2:05:34 PM
From: David Lawrence
   of 5232
 
'bout time!

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: David Lawrence who wrote (5204)11/24/2004 5:54:27 PM
From: TEDennis
   of 5232
 
Computer Associates CEO Gets Pay Package

Wednesday November 24, 4:59 pm ET

By Ellen Simon, AP Business Writer

Computer Associates Gives New CEO John Swainson Pay Package That Totals More Than $8.6 Million

NEW YORK (AP) -- Computer Associates International Inc., a business software company embroiled in an accounting scandal, is giving its new chief executive, John Swainson, a pay package that totals more than $8.6 million in salary, signing bonuses and stock.

The package includes a $2.5 million cash signing bonus, a $1 million base salary and a stock grant of 100,000 shares for signing with the company. The shares are valued at more than $3 million at the stock's early afternoon price Wednesday.

Swainson's package also includes what is described as "a payment equal to the present value of $2.8 million" in the "form and manner....mutually agreed" by Swainson and Computer Associates. The payment is "in respect of certain benefits he would have received had he remained employed" with his former employer, International Business Machines Corp., according to the five-year agreement, which was filed with the Securities and Exchange Commission.

Swainson will get an annual bonus of at least $333,334 for the remainder of the company's 2005 fiscal year, no matter what his performance.

His bonuses could go as high as $3.5 million in cash and restricted stock.

Swainson, 50, began working as president of the company Monday and will take over from its acting chief executive, Kenneth Cron, within six months. He worked at IBM for 26 years, most recently as head of its worldwide software sales.

Computer Associates, which has been rocked by an accounting scandal that has resulted in four executive guilty pleas and the indictment of former chief executive Sanjay Kumar, engaged in a protracted CEO search before announcing Swainson's selection this week.

Other details of the agreement include an initial stock option grant of 350,000 shares. The strike price on the shares will be their value on the day they were granted; the shares will vest over 10 years.

The agreement also grants him 100,000 shares of "restricted stock units" within six months of him leaving the company for any reason.

If Swainson is terminated by the company without cause, or if he quits under circumstances outlined in the agreement as "good reason," he will receive a severance package equal to two-years' salary and bonus, a lump-sum payment for 18 months of health insurance and accelerated vesting of stock awards due him over the 12 months after he departs.

Under the company's takeover provisions, he will get a severance payment equal to 2.99 times his salary and bonus if he is terminated without cause or for his own "good reasons" if the company is sold.

The company also disclosed Wednesday that Jeff Clarke, its chief operating officer, is eligible for a long-term bonus of $3 million for the period from April 1, 2004 to March 31, 2005.

Computer Associates shares rose 46 cents to close at $30.62 Wednesday on the New York Stock Exchange -- a new 52-week high. The shares are up about a third since early August.

biz.yahoo.com

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


From: Peter Dierks2/22/2005 1:36:04 AM
   of 5232
 
I called CA today for product information. The message said they were off today for Martin Luther King Day. Hmmm. I thought today was President's day. MLK Day was in January. Maybe it was just a long holiday for them or the wrong holiday for them.

Share RecommendKeepReplyMark as Last Read


To: TEDennis who wrote (5205)2/15/2006 6:17:00 PM
From: EL KABONG!!!
   of 5232
 
No sniping commentary necessary from me. The article speaks for itself...

online.wsj.com

Former CA CEO Kumar Is Accused of Deleting Data

By CHRIS REITER
February 15, 2006 3:33 p.m.


Sanjay Kumar, the former chief executive of CA Inc., has been accused of destroying potential evidence by erasing his laptop's hard drive, as the government gears up for his trial on allegations of accounting fraud in April.

In a letter filed with the U.S. District Court in Eastern New York, the U.S. Attorney's office said it will submit evidence showing that Mr. Kumar reformatted his laptop to run the Linux operating system, which would effectively wipe out the computer's memory. It alleges that the reformatting occurred after the start of government investigations and after the company issued a directive to employees to preserve relevant evidence.

The government also plans to show that a laptop, bearing a "partial latent" fingerprint from Mr. Kumar, had certain data deleted in the midst of government investigations, according to the letter filed Feb. 2.

Mr. Kumar, along with former head of sales Stephen Richards, have been charged with fraud and obstruction of justice in an accounting scandal at CA, formerly known as Computer Associates International Inc. The two were indicted in September 2004.

Attorneys for the defendants weren't immediately available for comment.

CA entered an 18-month deferred prosecution agreement for prematurely recognizing more than $2.2 billion in revenue between the fourth quarter of 1998 and the second quarter of 2001 by instituting the so-called "35-day month" in order to meet, or beat, quarterly earnings targets.

The government also plans to present evidence that Mr. Richards created a directory on his hard drive called "incinerate" shortly after receiving a subpoena from the Securities and Exchange Commission.

CA, which has overhauled management since Mr. Kumar was pushed out, has been cooperating with government investigators. The company has been trying to emerge from the scandal, in part by changing its name.

Write to Chris Reiter at chris.reiter@dowjones.com

EK!!!

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: EL KABONG!!! who wrote (5207)2/15/2006 7:17:38 PM
From: DEER HUNTER
   of 5232
 
Joel is that you??? lol

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: DEER HUNTER who wrote (5208)2/15/2006 7:30:31 PM
From: EL KABONG!!!
   of 5232
 
Nope, so sorry... Not Joel...

However, if you're looking for Joel, you might try this alias...

Member 988914

EK!!!

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: EL KABONG!!! who wrote (5209)2/15/2006 7:42:51 PM
From: DEER HUNTER
   of 5232
 
Ohhhh... me so sorrie. lol Never mind!

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


From: DEER HUNTER3/2/2006 4:31:20 PM
   of 5232
 
I hope they hang this guy.

yahoo.reuters.com

Share RecommendKeepReplyMark as Last Read


From: Mark Marcellus4/24/2006 2:39:55 PM
   of 5232
 
(Some) justice is served:

newsday.com

Share RecommendKeepReplyMark as Last Read
Previous 10 Next 10