Computer associates backdating
District Court in Brooklyn was Stephen Richards, who was an executive vice president for the Long Island-based firm.
Kumar, a native of Sri Lanka, and Richards, a native of New Zealand, pleaded guilty to the same seven counts: securities fraud; conspiracy to commit both securities and wire fraud; three counts of filing false statements with the Securities and Exchange Commission; conspiracy to obstruct justice; and obstruction of justice.
Amy Walsh, the chief federal prosecutor, also declined to comment.
Kumar's bank account wasn't the only site of a growth spurt.
Law360 (January 16, 2007, AM EST) -- The former general counsel for Computer Associates Inc.
was sentenced to two years in jail for his part in a .2 billion scheme to inflate the software company’s quarterly revenue through backdated sales deals, becoming the third disgraced company leader to be sent to prison.
The Securities and Exchange Commission began investigating in 2002 and eventually referred the case to the U. Justice Department, which has secured a number of guilty pleas of top CA Executives. Kumar, 44 years old, was indicted with former sales chief Stephen Richards, 41, who also pleaded guilty yesterday.
(Details of the accounting abuses at Computer Associates are described in Chapter 1.) What features of this plan might have contributed to the illegal backdating of sales contracts?