CAs Sanjay Kumar gets 12 yrs in US for accounting fraud
November, 04th 2006
CA Inc.s former Chief Executive Officer Sanjay Kumar was sentenced to 12 years in prison for leading a $2.2 billion accounting fraud at the software maker.
US District Judge I Leo Glasser imposed the prison sentence and an $8 million fine in Brooklyn, New York, and ordered Kumar, 44, to report to a federal prison by Feb. 27.
Kumar pleaded guilty in April to charges including conspiracy, fraud and obstruction of justice.
His cupidity calls for a meaningful sentence, the judge said. Glasser noted he didnt impose the life sentence called for by federal guidelines and called imprisonment not an appropriate measure of promoting rehabilitation.
The sentence fell short of the longest recent prison terms for executives convicted in the crackdown on corporate fraud after the collapse of Enron Corp. in 2001.
Bernard Ebbers, WorldCom chairman, got 25 years; Jeffrey Skilling, former Enron CEO, more than 24 years; John Rigas, Adelphia Communications Corp founder, 15 years; and L. Dennis Kozlowski, former chairman and CEO of Tyco, as long as 25 years.
Prosecutors said Kumar and other CA executives backdated contracts to inflate revenue at the Islandia, New York-based company, formerly Computer Associates International Inc., the worlds second-largest maker of mainframe computer software. I apologise to the court for my mistakes and conduct, Kumar said.