Sanjay Kumar

Sri Lankan-born Sanjay Kumar was originally hired as a software developer in 1987 by Computer Associates International, Inc., a Long Island, New York - based software development and consulting firm. By 2002, Kumar had risen to the level of Chairman and CEO of the publicly-traded company. However, in early June 2004, Kumar left the company amid financial statement fraud allegations and, in mid-September 2004, Kumar was indicted on charges of securities fraud, conspiracy, perjury and obstruction of justice in connection with an alleged scheme to inflate the company’s financial results. At the same time, the company agreed to pay $224 million in restitution to settle fraud charges against its self. On April 24, 2006, Kumar pleaded guilty to all 8 felony counts in a federal court in Brooklyn, New York. Another defendant, Stephen Richards, Computer Associates’ former worldwide head of sales, also plead guilty to the charges. Prosecutors alleged that the Kumar and several of his colleagues had conspired to inflate revenues to the tune of $2.2 billion by improperly booking software license revenue and backdating contracts. Kumar had also reportedly erased his computer hard drive in an effort to conceal evidence. On November 3, 2006, Kumar was sentenced to 12 years in prison for his role in the fraud and ordered to pay an $8 million fine. On April 27, 2007, Kumar was further ordered to pay nearly $800 million in restitution. Kumar blamed the company’s founder and former chairman, Charles Wang, as the architect of the pervasive financial fraud scheme at Computer Associates. Nevertheless, Kumar lost his appeal in August 2010 to have his 12 year sentence reduced and is currently serving his term at the federal prison in Fairton, New Jersey.