April 14, 2007
South Asian Origin CEO to Pay $52 Millions in Fraud Case
New York
A former Sri Lankan-born chief executive, who was found guilty in an
elaborate accounting fraud at Computer Associates between 1999 and
2000, will pay about $52 million in compensation to investors.
US District Judge Leo Glasser approved a deal Friday requiring
Sanjay Kumar, the former chief executive of Computer Associates to
pay at least $52 million -- including proceeds from the sale of his
yacht and pair of Ferraris -- to victims of a huge accounting fraud,
the online toptechnews reported.
Kumar resigned from Computer Associates in April 2004, following an
investigation into securities fraud and obstruction of justice. He
allegedly plotted to report more than $2 billion in false revenue
and was reportedly the architect of an elaborate fraud and cover up
that included backdating contracts, lying under oath, and trying to
buy the silence of a potential witness.
The agreement with Kumar, who was sentenced to 12 years in prison
last November, would theoretically make him liable for as much as
$798.6 million in payments to investors.
Prosecutors acknowledged that Kumar and his family will probably
never have enough money to pay that amount.
The deal, which was filed earlier this month, calls for Kumar to
make instalment payments of $40 million, $10 million and $2 million
by December of 2008.
Kumar, who was born in Colombo, migrated with his family to the US
in 1976 and settled in South Carolina. He attended Furman University
from 1980 to 1983, but left without completing a degree.
Computer Associates is the world's fifth largest software company,
founded in New York by Charles B. Wang in 1976 as Computer
Associates International, Inc. The company has approximately 16,000
employees with offices throughout the United States and the world.
In Feb 2006, Computer Associates International officially changed
its name to CA, Inc.
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