Friday, November 03, 2006

Sanjay Kumar gets 12 years in prison

Sanjay Kumar, the former CEO of Computer Associates, was sentenced to 12 years in prison Thursday for his role in a $2.2 billion accounting fraud at the software company.

He was also fined $8 million. Kumar is due to report to a federal prison in New Jersey on Feb. 27, pending appeal.

Kumar, 44, pleaded guilty to charges including conspiracy, securities fraud and obstruction of justice in federal court in Brooklyn in April, Reuters reported.

The government said as part of the accounting scheme, Kumar improperly booked software license revenue from 1999 to 2000 in order to meet Wall Street analysts' profit expectations and then lied to investigators about it.

Assistant U.S. Attorney Eric Komitee told the judge that Kumar's actions represented "the most brazen and comprehensive obstruction in the modern era of corporate crime," Reuters reported.

Kumar's lawyers reportedly asked for leniency, citing his good works.

Full story


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