Monday, April 24, 2006

Computer Associates ex-CEO set to plead guilty to fraud charges

Sanjay Kumar, ex-CEO of Computer Associates (CA) looks set to plead guilty to fraud charges brought against him and a colleague at a Court in Brooklyn later today. Just when you thought all the hot corporate stuff was going on solely at Enron's trial!

The CA executives were indicted in September 2004 on financial fraud charges in connection with allegedly back-dated contracts that allowed the business software giant to appear to meet financial goals by continuing to book revenue even after a quarter ended.

Apparently they specialised in 35 day months. Hey, that's original. If proven guilty Kumar could be put away for a very long time. Let's hope cases like this send a message to future fraudulant executives severe enough that they behave as they should - protecting investors, customers and employees - not ripping them off.

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