Sanjay Kumar, the former CEO of Computer Associates, was sentenced to 12 years in prison for his part in the accounting scandal that shaved billions of dollars from the company’s market cap.
He plead guilty for his part in masterminding a 35–day accounting month that also allowed for software sales to occur during a given quarter, but allowed the customer to return products or not pay for the transaction. In effect, the company’s performance was artificially inflated to achieve revenue targets. Meanwhile, he personally profited from the company’s perceived strong performance.
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