2 software executives plead guilty to fraud

[WhiteTara]

some more of the "bad eggs" are going to prison. Glad to see this white collar crime is being vigorously prosecuted.
http://www.iht.com/articles/2006/04/25/business/ca.php
NEW YORK Two weeks before they were to go on trial, two former top executives of Computer Associates International have pleaded guilty to eight counts each of securities fraud and obstruction of justice in U.S. District Court in Brooklyn.

The guilty pleas were entered Monday by Sanjay Kumar, former chief executive, and Stephen Richards, a former top salesman. They confessed to a wide- ranging conspiracy to inflate the company's sales in 1999 and 2000 and interfere with the subsequent federal inquiry.

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The obstruction of justice charges carry maximum prison sentences of 20 years each; the fraud charges carry maximum sentences of 5 to 10 years each. Prosecutors said the men had not been promised leniency in return for the plea. They are to be sentenced on Sept. 12.

snip


On Friday, the government charged Thomas Bennett, another former executive, with spending $3.7 million of company money in 2003 to bribe two potential witnesses in the investigation. Kumar directed Bennett's actions, according to the indictment. Five former senior executives at Computer Associates have now pleaded guilty, and the company has paid $225 million to a shareholder restitution fund.

Of the top executives at Computer Associates in the late 1990s, only Wang has not been indicted or entered a guilty plea. The statute of limitations for the securities fraud is five years, so Wang cannot be prosecuted for any of Computer Associates' actions before April 2001.

[EC]

1. They'll have jobs waiting for them at ES&S or

Diebold...