Former Computer Associates International Inc. chief executive officer Sanjay Kumar pleaded guilty Monday afternoon to criminal charges that he led a $2.2 billion accounting fraud at the software giant, according to Bloomberg.
The plea before U.S. District Judge I. Leo Glasser, in federal court in Brooklyn, came just two weeks before Kumar and former sales executive Stephen Richards were scheduled to stand trail. (Former CFO Ira Zar and two other finance executives pled guilty to obstruction of justice charges in 2004.)
According to Newsday, Kumar and Richards each pleaded guilty to seven counts: securities fraud, conspiracy to commit securities and wire fraud, obstruction of justice, conspiracy to obstruct justice, and three counts of filing false statements to the Securities and Exchange Commission.
Kumar also pleaded guilty to making false statements to the FBI and Richards also pleaded guilty to perjury, according to the paper.
Kumar resigned as chairman and chief executive officer of the company, now called CA, back in April 2004.
In September of that year, Kumar and Richards were charged with securities fraud, obstruction of justice and lying to officials, Bloomberg noted. Kumar was also charged with paying $3.7 million to an executive who threatened to report an improper transaction, the wire service added.
Computer Associates was accused by prosecutors of using a “35-day month” to extend financial reporting periods in order to make it appear the company “met or exceeded revenue expectations,” according to the report.
“In each of the four quarters of 2000, CA falsely reported hundreds of millions of dollars in revenues and licensing agreements,” Glasser reportedly said before accepting pleas from the two individuals.
Kumar still faces possible civil charges from the Securities and Exchange Commission.