Risk Management

Former CA Sales Exec Gets Seven Years

In connection with his role in the revenue-backdating scheme, Richards earlier pleaded guilty to conspiracy, securities fraud, making false filings...
Stephen TaubNovember 14, 2006

Stephen Richards, CA’s former head of sales, was sentenced on Tuesday to seven years in prison after pleading guilty to taking part in a scheme to backdate some of the software giant’s sales contracts in order to boost the company’s quarterly revenue figures, according to the Associated Press. He will also be subjected to three years supervised release.

The former sales exec was contrite before the judge. “I fully accept responsibility for the actions I’ve taken and regret those actions,” Richards said in court, according to the wire service. “I only hope to reunite with my family as soon as possible.”

In April, Richards pleaded guilty to conspiracy, securities fraud, making false filings with the Securities and Exchange Commission, obstruction of justice, and perjury, according to the report.

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Earlier this month, CA’s former chief executive Sanjay Kumar was sentenced to 12 years in prison for his role in the same scheme. “The culpability of Mr. Richards, though not insignificant, is of a different order than the culpability of Sanjay Kumar,” Judge Glasser reportedly said before sentencing.

The scheme that involved Richards, Kumar, and others has come to be known as the “35-day month” because it involved artificially extending the month in which they posted revenues, according to the AP.

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