Computer Associates ex-CEO pleads guilty

The former CEO of US company Computer Associates International has pleaded guilty to obstruction of justice and securities fraud…

The former CEO of US company Computer Associates International has pleaded guilty to obstruction of justice and securities fraud charges.

According to a 2004 indictment, Sanjay Kumar was so involved with adding false revenue to a financial quarter even after it closed that he flew on a corporate jet to Paris in July 1999 to finalise a $19 million deal and signed a contract that had been backdated.

The company's former head of worldwide sales, Stephen Richards, pleaded guilty to the same charges in federal court in Brooklyn. He and Kumar left the courthouse without speaking to reporters.

The indictment also charged that executives instructed salespeople to complete deals after the quarter had closed - a practice known within the company as the "35-day month" - and "cleaned up" contracts by removing time stamps from faxes.

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"Your honor, my conduct was wrong. I take responsibility for participating in this practice, and I apologise for my actions," Kumar told the judge.

Five other top executives had previously pleaded guilty.

Kumar (44) and Richards (41) remain free on $5 million bond while awaiting their September 12th sentencing. The law allows a maximum sentence of 20 years in prison for the offenses, but the term could be substantially less under federal sentencing guidelines.