The Channel logo

News

By | John Oates 4th July 2005 15:35

CA boss charges detailed

Unpleasant discovery

Sanjay Kumar, the former boss of Computer Associates, has been accused of paying a $3.7m bribe in a failed attempt to cover up the company's dubious accountancy practices.

US prosecutors have filed revised indictments against Kumar and Stephen Richards, former head of worldwide sales, including securities fraud, conspiracy and obstruction of justice.

The changed indictment alleges Kumar gave the green light to a $3.7m fee to a man who was threatening to reveal the problems with CA's books.

Back in 2000 CA signed a multimillion dollar contract with "a nearly insolvent" customer and then backdated the payment so it hit targets for the previous quarter.

But "Individual #1", the boss of the company, wanted paying for helping CA out. Two CA executives flew to Hawaii to meet him and after further threats of exposing CA's practises Kumar agreed to pay him $3.7m for consultancy services which were never delivered, according to ITNews.com. More details here.

The two sides are currently in discovery, showing each other evidence, and will meet again in July.

CA reached agreement with the US government late last year and agreed to pay $225m.®

Related stories

CA's Clarke chills in the City
CA to restate five years of figures
CA boss admits long road to recovery

alert Send corrections

Opinion

Walking on water, image via Shutterstock

Chris Mellor

IDC stats reveal who's who in the backup appliance bearpit
Carry on Cleo

Gavin Clarke

Infamy, infamy, Amazon and Microsoft have all got it in for me!

Tim Anderson

Also signals stronger cross-platform tools, access to new markets

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers