Sanjay Kumar is sentenced and also slapped with $8 million fine for fraud.
Former CA CEO Sanjay Kumar this week was sentenced to 12 years in prison and fined $8 million after pleading guilty earlier this year to charges he participated in accounting fraud at software maker CA, according to reports in The Wall Street Journal.
Kumar, 44, will serve 144 months in prison, followed by three years of supervised release, according to the report. In April he pleaded guilty to charges including obstruction of justice, securities fraud, conspiracy and falsely reporting millions of dollars in revenue to the U.S. Securities and Exchange Commission for licensing agreements in fiscal quarters when the deals had not yet been closed. The practice artificially enhanced the software company’s earnings, according to prosecutors.
Kumar was tried in April with codefendant Stephen Richards, the company’s former worldwide sales head, in federal court in Brooklyn, N.Y. Richards is not expected to be sentenced until Nov. 14, according to the report.
Kumar left CA in April 2004, following his indictment. In the wake of the fraud charges, CA avoided indictment but was forced to pay $225 million to compensate victims.
CA spokeswoman Jennifer Hallahan said the sentencing is “another step” in putting the company’s past behind it. “We are a dramatically different organization than we were more than two years ago, when Mr. Kumar left the company,” she said. “We’re focused on building a strong company to the benefit of shareholders, customers and employees, we’ve been careful to put in place an infrastructure that promotes integrity, compliance and good governance.”
The company is working on the return of any “ill-gotten gains” from former executives, Hallahan added.
IDG News Service contributed to this report.
