Computer Associates Kumar pleads guilty
By Scott Files
Published on April 24, 2006
Kumar, who left CA Int'l (as it is now known) in June of 2004, admitted to improperly booking revenue to help the company meet investor and Wall Street expectations.
In a written statement that Kumar read in court, the former CEO said: "I know my conduct was wrong ... I apologize for my actions."
Kumar was joined by former Computer Associates, Int'l sales manager Stephen Richards in his guilty plea before Judge Leo Glasser in U.S. District Court in Brooklyn.
The indictment consisted of over 40-pages and required more than two hours to finish the hearing.
Kumar is alleged to have paid off a customer who was threatening to blow the whistle on a bogus software deal to the tune of $3.7 Million. Investigators contend that Mr. Kumar knew that an investigation was pending in California at the time of the payoff.
Each count in the indictment carries a maximum sentence ranging from 5 to 20 years. Sentencing was set for September 12.
Analysts said current CA investors should not be worried about the plea.
"This is more or less past history," said A.G. Edwards analyst Kevin Buttigieg. "I really don't think it matters as far as the stock is concerned."
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