Sanjay Kumar, the former chief executive officer of CA, was sentenced in the US yesterday to 12 years in prison and a US$8 million fine on securities fraud charges.
Kumar pleaded guilty in April to obstruction of justice and securities fraud charges at the company. He faced a sentence of up to 20 years in prison.
Kumar remains free on bond while US District Court Judge I. Leo Glasser decides how much restitution he will order Kumar to pay to victims, said a spokesman for the US Attorney's Office for the Eastern District of New York. The judge said he will decide the restitution amount within 90 days, the spokesman said.
Kumar and Stephen Richards, the company's former worldwide sales head, both pleaded guilty after they were accused of fraudulent accounting practices, including falsely reporting hundreds of millions of dollars in revenue for licensing agreements during fiscal quarters in which the deals had not yet been finalised.
Richards is yet to be sentenced.
In early 2000, CA signed a US$44.5 million license deal with a nearly insolvent customer in which it had an ownership stake, according to court records. It then back-dated the contract so it could be recorded in the prior quarter. In the next quarter, CA reversed the revenue in its internal records but did not publicly restate its results.