Former CA software chief charged

The US has been cracking down on accounting fraud

The former chief executive of US software firm Computer Associates has been charged with securities fraud over a $2.2bn (£1.2bn) accounting scandal.

Sanjay Kumar is also accused of trying to thwart a criminal inquiry into the firm's revenues in 2000 and 2001.

In a separate case, Computer Associates itself agreed to pay shareholders $225m as part of a settlement.

A prosecution against the firm will now be dismissed if it adheres to a number conditions over the next 18 months.

An outside monitor will track Computer Associates' financial reporting and the New York-based firm will have to reorganise its finance department.

'Troubling chapter'

"With these agreements, CA has taken a critical step in closing this deeply troubling chapter in its history," said Computer Associates chairman Lewis Ranieri.

Along with Mr Kumar, Computer Associates' former head of worldwide sales, Stephen Richards, has been charged with conspiracy to obstruct justice.

Also on Wednesday, the company's former lawyer, Steven Woghin, pleaded guilty at federal court in New York to conspiracy to commit securities fraud and obstruction of justice.

Three other executives are already awaiting sentence after admitting illegally boosting the software maker's earnings.

Computer Associates was founded in 1976 to develop corporate software and in 1989 became the first firm in its sector to clock up $1bn in sales.