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Last Updated: Thursday, 2 November 2006, 21:16 GMT
Software executive gets 12 years
Sanjay Kumar
Kumar was found to have fraudulently boosted revenues
The former boss of Computer Associates has been sentenced to 12 years and fined $8m (4.2m) for his role in a giant fraud at the US software giant.

Sanjay Kumar had pleaded guilty to charges including conspiracy, securities fraud and obstruction of justice back in April.

As part of a $2.2bn accounting scandal he had falsely reported software licence revenues and lied to investors.

Computer Associates is now known as CA and employs 15,000 people worldwide.

"I know that I was wrong and there was no excuse for my conduct," Kumar told US District Judge Leo Glasser at his sentencing in New York.

According to one prosecution charge, Mr Kumar was so involved with boosting sales figures for one particular quarter as it was closing that he flew in a corporate jet to Paris to finalise a $19m deal and signed a contract that had been backdated.

'35-day month'

Together with other executives he was charged with developing a company practice known as the "35-day month" and instructing sales people to complete deals after the quarter had closed and remove the timestamp from faxes.

This practice, which prosecutors said took place between 1999 and 2000, was used to boost the company's software sales figures in order to meet analyst expectations.

The prosecution also said that Kumar lied under oath about the frauds and tried to buy the silence of potential witnesses.

He was told to present himself for the start of his sentence on 27 February.

Charles Wang founded Computer Associates in 1976 to develop corporate software.

Specialising in security systems and database management, it became the first software firm to clock up $1bn in sales in 1989.

Mr Wang retired from the company in 2002 and has not been charged with any offence.




SEE ALSO
Former CA software chief charged
22 Sep 04 |  Business
Computer Associates guilt spreads
12 Apr 04 |  Business
Computer Associates guilty plea
08 Apr 04 |  Business
Wang quits Computer Associates
18 Nov 02 |  Business

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