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To: DEER HUNTER who wrote (5210)11/2/2006 2:36:47 PM
From: Box-By-The-Riviera™
   of 5232
 
hey, i just pulled this place up again to post sanjay's jail time.

see you were looking for me. i'm now about five handles down the road since we last spoke.

hope you've been fine! how's the duck hunting? <g>

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From: Glenn Petersen4/13/2007 6:53:51 AM
   of 5232
 
Ex-Executive Agrees to Pay $800 Million in Restitution

April 13, 2007

By ALEX BERENSON

Sanjay Kumar, the former chief executive of Computer Associates, has agreed to pay almost $800 million in restitution to investors who lost money because of the company’s accounting fraud.

Mr. Kumar, who is scheduled to begin serving a 12-year prison term this month, will actually pay about $52 million this year, the majority of his and his family’s assets. Most of the remaining restitution will probably never be paid, although when Mr. Kumar leaves prison the government will have the right to garnish 20 percent of his wages.

The agreement was filed last week in Federal District Court in Brooklyn before Judge I. Leo Glasser, who has overseen the long-running case. Mr. Kumar is scheduled to appear today before Judge Glasser.

Mr. Kumar, once a part owner of the New York Islanders and one of the highest-profile executives on Long Island, pleaded guilty last year to a conspiracy to inflate Computer Associates’ sales in 1999 and 2000 and to interfere with the subsequent federal investigation. As part of the conspiracy, Mr. Kumar lied repeatedly to investigators and even authorized paying $3.7 million to buy the silence of a potential witness.

Several other former company executives also pleaded guilty in the scheme, though Charles B. Wang, the founder and longtime chairman of Computer Associates, was never charged. The statute of limitations on securities fraud is five years, making further indictments on fraud charges impossible.

The company, now called CA Inc., makes software that helps companies manage their computer networks and mainframes. At the height of the fraud in 2000, the company claimed it had more than $6 billion in sales. Last year, it reported less than $4 billion in sales.

Former employees have said that during the late 1990s, Computer Associates engaged in many tricks to inflate its sales and profits, including booking sham sales and backdating contracts. As part of his guilty plea, Mr. Kumar admitted backdating contracts, and the indictment and other supporting evidence refer to repeated sham sales.

As part of the restitution agreement, Mr. Kumar will pay about $20 million from his own assets, while trusts he created for his wife and children will pay the remainder. Mr. Kumar’s family will probably be left with several million dollars in assets.

The company has already paid $225 million to the restitution fund. Other senior executives who pleaded guilty in the case will also have to make restitution, although their contributions will be much less than Mr. Kumar’s.

Even so, the fund will be able to repay only a small part of what shareholders in the company — including many employees — lost in the fraud. The company’s stock trades at one-third of its peak in 2000. Yesterday, CA shares closed at $26.36, up 40 cents.

Besides the restitution, Mr. Kumar must pay an $8 million fine that Judge Glasser imposed last year.

Lawyers for Mr. Kumar and a spokesman for federal prosecutors in Brooklyn did not return calls seeking comment.

nytimes.com

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To: Glenn Petersen who wrote (5215)4/13/2007 7:22:51 AM
From: Box-By-The-Riviera™
   of 5232
 
12 years wasn't long enough.

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To: Box-By-The-Riviera™ who wrote (5216)4/13/2007 9:01:02 AM
From: Glenn Petersen
   of 5232
 
12 years wasn't long enough.

Then he should have used a gun. That would have been worth at least 15 to 20.

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To: Glenn Petersen who wrote (5217)4/13/2007 9:04:43 AM
From: Box-By-The-Riviera™
   of 5232
 
the analysts who touted while he was doing that should be doing some time as well. they were thick as theives. period.

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To: Box-By-The-Riviera™ who wrote (5218)4/13/2007 11:35:48 PM
From: Glenn Petersen
   of 5232
 
CA Says Its Founder Aided Fraud

By ALEX BERENSON
Published: April 14, 2007

Charles B. Wang, the founder and former chairman of Computer Associates, oversaw an accounting fraud lasting more than a decade at the software company, according to a scathing report released yesterday by the company’s board.

Mr. Wang, who owns the New York Islanders and is among the most politically influential people on Long Island, masterminded accounting gimmicks that led his company to report inflated sales and profits, the report states.

As a result of the fraud, the company has been forced to spend over $500 million on fines and internal investigations. It is still struggling to rebuild the trust of employees and shareholders, the report says.

In a statement, Mr. Wang said he sharply disagreed with the report’s conclusions and blamed Sanjay Kumar, his hand-picked successor, for the fraud.

Mr. Wang created a “culture of fear” at Computer Associates — now called CA — and deliberately put inexperienced executives in senior positions so that he would have more control, according to the report. He discouraged executives from meeting with each other and arbitrarily fired managers or employees who disagreed with him.

“Fraud pervaded the entire CA organization at every level, and was embedded in CA’s culture, as instilled by Mr. Wang, almost from the company’s inception,” the report said.

William E. McCracken and Renato Zambonini, directors of CA, wrote the 390-page report with the assistance of the law firm of Fried, Frank, Shriver, Harris & Jacobson. Mr. McCracken and Mr. Zambonini served as a “special litigation committee” to determine whether CA should try to recover money from Mr. Wang and other top executives and how it should deal with a shareholder lawsuit filed in 2005.

The report concludes that CA should try to force Mr. Wang to repay at least some of the compensation he received from the company. In 25 years running Computer Associates, Mr. Wang built a fortune estimated at about $1 billion, including a bonus in 1998 of $670 million that was issued shortly before its stock plunged 31 percent in a day.

The report focuses on CA’s practice of backdating contracts, although former employees have said that the company’s accounting gimmickry during the 1990s went far beyond backdating. The company used a variety of accounting ruses to inflate its reported sales and profits, the employees said.

Internal accounting controls were almost nonexistent at CA under Mr. Wang, according to the report. In 2000, at a time when CA had almost 20,000 employees and more than $6 billion in reported sales, its internal audit division consisted of five employees, including part-timers.

Since then, CA has replaced its entire upper management team, almost its entire board, and instituted stricter internal controls. Its reported sales have declined about 40 percent since 2000, to less than $4 billion. CA’s stock has fallen almost 70 percent from its highs in 2000. Yesterday, it closed at $26.35, down 1 cent.

In his statement, Mr. Wang said the report cannot be believed because it is based on information from former Computer Associates executives who have already admitted lying to the government.

“I am appalled by the report today,” Mr. Wang said. “This fictitious report does not serve the best interest of shareholders, customers and employees.”

Mr. Wang blamed Mr. Kumar, who replaced him as chief executive in 2000 and as chairman in 2002, and other executives for the company’s problems.

“I intend to vigorously defend my good name and fight any and all efforts to place the crimes of Kumar and his management team at my feet,” he said.

The report disputes that contention, claiming that from 1994 to 2000, Mr. Kumar undertook the fraud “often at the explicit direction of Mr. Wang (and at other times to avoid Mr. Wang’s anger).”

Dan Kaferle, a spokesman for CA, said the company believed the report was thorough, independent and complete. “We are pleased we are moving forward and putting these issues behind us,” he said.

The fraud at CA has been the subject of a five-year federal investigation that began in response to a New York Times article in April 2001 detailing the company’s accounting gimmicks. Several former CA executives, including Mr. Kumar, the former chief executive, have pleaded guilty to securities fraud and obstruction of justice charges stemming from the investigation. The company agreed in 2004 to pay $225 million to a shareholder restitution fund to settle the investigation.

But Mr. Wang has never been charged in the case. The statute of limitations for both securities fraud and obstruction of justice is five years, so prosecutors can no longer bring charges for any crimes before April 2002.

Mr. Wang was a hands-on executive intimately involved in the details of the company’s operations for more than two decades, according to the report. “Under Mr. Wang, CA was known as a ‘one-headed’ dragon, and no significant decisions were made without his participation and approval,” the report says.

But former employees have also said in interviews that Mr. Wang avoided the use of both e-mail and voice mail during his time running the software company.

nytimes.com

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To: Glenn Petersen who wrote (5219)4/14/2007 12:33:45 AM
From: Box-By-The-Riviera™
   of 5232
 
you bet. sanjay was like his fricken clone. you betcha.

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From: TEDennis4/20/2008 11:26:59 AM
   of 5232
 
Four years ago this month, Sanjay Kumar was "asked" to step down from his CEO position. He is now serving 12 years in the Graybar Hotel.

All you aspiring CEOs out there would do well to seek a different role model than Sanjay.

TED

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To: TEDennis who wrote (5221)4/20/2008 7:11:48 PM
From: Mark Mandel
   of 5232
 
RE: "All you aspiring CEOs out there would do well to seek a different role model than Sanjay."

Can't disagree. Also, since they have to meet margin expectations they continue to cut jobs.

Do you think they have anyone left in the auditing department, lol.

reuters.com

Mark

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From: diddlysquatz1/30/2009 12:47:37 PM
   of 5232
 
Looks like CA is getting into a new sector:

canadiannexuscapitalmarkets.com

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