Former CA CEO Kumar To Start 12-Year Prison Sentence
Sanjay Kumar was sentenced last November to 12 years in prison and an $8 million fine after being convicted of securities fraud and obstruction of justice.
Sanjay Kumar, CA's former CEO, is due to begin serving his 12-year sentence for securities fraud and obstruction of justice on Tuesday.
Kumar, who left CA on June 4, 2004, should surrender himself to the Federal Bureau of Prisons, according to Robert Nardoza, a spokesman for the U.S. Attorney's Office in Brooklyn. He said he did not know which prison he will be held in. Kumar's attorney could not be reached for comment.
The executive was sentenced last November based on his conviction on eight counts of securities fraud, obstruction of justice, and false statements. A jury found that Kumar presided over a scheme to falsely inflate CA's quarterly sales numbers by adopting a 35-day month internally. CA was formerly known as Computer Associates.
Along with the imprisonment, Kumar was ordered to pay an $8 million fine. And this past April, a court ordered Kumar to make restitution for up to $800 million in losses suffered by investors who lost money as a result of his accounting fraud scheme.
"The integrity of U.S. financial markets depends on corporate executives accurately reporting their companies' performance to the investing public," said U.S. Attorney Roslynn R. Mauskopf, in a written statement. "In violation of the shareholders' trust and federal securities laws, the defendant persistently misrepresented the company's financial position and orchestrated a pervasive cover-up scheme."
Six of Kumar's fellow executives at CA have pleaded guilty to criminal charges related to the case, and the company itself has agreed to contribute $225 million to the victims' fund. To date, more than 95,000 people have made claims against the fund.
Kumar also has agreed to pay CA $15 million to reimburse the company for legal fees it spent on his defense.
Building A Mobile Business MindsetAmong 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps – and it's past time for those with no plans to get cracking.
Top IT Trends to Watch in Financial ServicesIT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Join us for a roundup of the top stories on InformationWeek.com for the week of September 18, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."