The former chief executive officer of American firm Computer Associates, Sanjay Kumar, has been charged with accounting fraud and obstruction of justice, the US government has announced.
The 10-count indictment, returned by a federal grand jury on Friday last and unsealed on Wednesday, charged CEO Sanjay Kumar, who hails from Sri Lanka, and CA's former head of worldwide sales Stephen Richards with securities fraud conspiracy and obstruction of justice, federal prosecutors announced.
Also, CA's former general counsel and senior vice-president Stephen Woghin has pleaded guilty to similar charges for his role in what the Department of Justice called a company-wide accounting fraud scheme.
The accounting scandal, which included backdating contracts to improperly book more than $2 billion, led to the restatement of $2.2 billion and the indictment of several former executives including the firm's former chief financial officer and the departure of Kumar.
The Department of Justice also announced that CA has been charged with, and accepted responsibility for, the illegal conduct of its former executives and has agreed to pay $225 million to compensate victims of the fraud, among other reparations.
The company, which develops corporate software and in 1989 became the first firm in its sector to clock up $1 billion in sales, will not be prosecuted if it adheres to the agreement. That deal, however, doesn't protect any individuals from prosecution, the Justice Department said in a statement.
