Three former CA executives have admitted that they fraudulently recorded hundreds of millions of dollars worth of contracts to inflate the company's quarterly earnings," the paper said.Comey, chair of the president's Corporate Fraud Task Force, in a statement.The Financial Times described the significance of the case: "The fraud charges, which include accusations against CA, cap the most widespread case of alleged accounting fraud to emerge from the technology bubble." "The indictment came as CA, one of the country's largest software makers, was also charged with obstruction and securities fraud but avoided an indictment after reaching a deferred-prosecution arrangement with the Justice Department. Kumar was named, along with former head of sales Stephen Richards, in a 10-count indictment yesterday. District Court in Brooklyn," the Wall Street Journal said, noting that through their lawyers, Kumar and Richards denied any wrongdoing.
Waksal -- former head of biotech company Im Clone -- and domestic diva Martha Stewart, who will go to jail next month.USA Today has more details on the accounting problems at CA."The defendants are accused of perpetrating a massive accounting fraud that cost public investors hundreds of millions of dollars when it collapsed.Then they allegedly tried to cover up their crimes by lying," said Deputy Attorney General James B.
It's fall and the leaves aren't the only things starting to drop -- so are more executives who are falling from grace as swashbuckling accounting methods of the 1990s continue to come under the microscope of Uncle Sam.The latest tech star-turned-federal target Sanjay Kumar, the former leader of Computer Associates International Inc., was charged by federal prosecutors with securities fraud, conspiracy and obstruction of justice in connection with a multibillion-dollar accounting fiasco at the Islandia, N. The company's former head of sales was also indicted.