Computer associates backdating
In November 2006, a two billion two hundred million dollar fraud scheme was uncovered.
The grant date was changed to April 14, 2000, with a new exercise price of US.75.The stock has risen slightly since Newsday reported in early September that the company was close to a deal for a deferred prosecution. Richards by name, but they included references to two unidentified senior executives who participated in the conspiracy. The practice of backdating sales is generally viewed as less serious than frauds like booking fake sales. Prosecutors said they considered indicting the company this year after the extent of its effort to obstruct their investigation became apparent. Zar, the former chief financial officer, have depicted a widespread conspiracy at Computer Associates to lie about the practice of backdating sales. But current and former Computer Associates employees have said that backdating was one of many accounting tactics used in the 1990's to overstate profits and inflate the company's growth rate. Kumar was the second-ranking executive, behind Charles B. Steven Woghin, the former general counsel of Computer Associates, will plead guilty today in Federal District Court in Brooklyn to criminal charges stemming from a two-year investigation into the company's accounting practices, people close to the case said yesterday. Woghin is expected to clear the way for prosecutors to move against Sanjay Kumar, the company's former chief executive, and Stephen Richards, its former vice president for sales, who have been the focus of the federal investigation. The company and prosecutors have also reached a deal under which Computer Associates will temporarily accept an outside monitor and pay restitution to shareholders in return for the resolution of the investigation. Woghin would join several other former Computer Associates executives who have pleaded guilty this year to charges of obstruction of justice or securities fraud and have agreed to cooperate with prosecutors to avoid lengthy prison terms. In the earlier pleas, former executives depicted a wide-ranging conspiracy at the company to backdate contracts so that Computer Associates, the world's fourth-largest software company, would meet Wall Street's forecasts for profit. Computer Associates will also continue to cooperate with the government as it investigates Mr. If the monitor finds that Computer Associates has not kept its promises, prosecutors have the right to move forward with an indictment, these people said yesterday. Richards are expected to be indicted shortly, lawyers involved in the case said yesterday. said in a civil complaint that he had told another employee to respond "with half-truths and vague answers" to lawyers from Wachtell, Lipton, Rosen & Katz, the law firm hired by Computer Associates to investigate its accounting practices. In return, Computer Associates has agreed to pay more than 0 million in restitution to shareholders who lost money because of the fraud and to accept outside monitoring of its accounting practices for about two years, these people said.