| To: TEDennis who wrote (5205) | 2/15/2006 6:17:00 PM | | From: EL KABONG!!! | | | | 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!!! |
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| From: Box-By-The-Riviera™ | 11/2/2006 2:32:55 PM | | | | | | it took a while, but that little snake finally got bit
Nov. 2, 2006
The former chief executive of Computer Associates was sentenced to 12
years in prison and fined $8 million for his role in a massive
accounting fraud at the software company, now known as CA. Sanjay Kumar pleaded
guilty in April to obstruction of justice and securities fraud charges.
guess wang will skate |
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| To: DEER HUNTER who wrote (5210) | 11/2/2006 2:36:47 PM | | From: Box-By-The-Riviera™ | | | | 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 Petersen | 4/13/2007 6:53:51 AM | | | | | | 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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