Chief exec ordered to pay victims of accounting fraud
Chief executive improperly booked figures in books to meet Wall Street analysts' profit predictions
A New York judge is expected to consider an agreement today which calls for a
former chief executive to pay nearly $800m (£402,585,485.97) in restitution to
victims of accounting fraud.
Sanjay
Kumar, the chief executive of CA Inc. was also sentenced to 12 years in
federal prison last November for his role in the $2.2b (£1,1b) accounting fraud
at the software company.
Kumar improperly booked software license revenue from 1999 to 2000 to meet
Wall Street analysts’ profit expectations and then lied to investigators about
it.
The company restated its results for the fiscal years 2001 to 2004 after he
left the New-York based company after a 20-year career.
He agreed to pay back $52m (£26m) by liquidating assets held by him and his
family.
He will also be obliged to pay 20% of his annual income, upon release from
prison, to make up the rest of the restitution amount.
Further reading:
His
fraud cost stockholders a blockbuster sum and he’ll repay $52M of it by December
2008
Ex-Executive
Agrees to Pay $800 Million in Restitution