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CA's ex-CEO Kumar pleads guilty to securities fraud

Written by: Staff
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NEW YORK, Apr 24 (Reuters) Sanjay Kumar, the former chief executive of CA Inc., pleaded guilty on Monday to securities fraud and obstruction of justice charges related to a NEW YORK, Apr 24 (Reuters) Sanjay Kumar, the former chief executive of CA Inc., pleaded guilty on Monday to securities fraud and obstruction of justice charges related to a $2.2 billion accounting fraud at the software company.

Kumar, who left Computer Associates International Inc., the company's former name, in June 2004, acknowledged his role in improperly booking revenue at the company to meet Wall Street expectations.

In a written statement that Kumar read in court, the former CEO said: ''I know my conduct was wrong ... I apologize for my actions.'' Stephen Richards, the former head of sales at Computer Associates also pleaded guilty to securities fraud and obstruction of justice charges at a hearing before Judge Leo Glasser in U.S. District Court in Brooklyn.

In a hearing lasting more than two hours, the judge read out the more than 40-page long indictment.

Kumar and Richards were both named in a nine-count indictment with eight charges against each executive. The charges range from conspiracy to commit securities fraud, conspiracy to obstruct justice, obstruction of justice.

Richards was also charged with committing perjury and Kumar was charged with making false statements.

Both men initially pleaded not guilty to criminal charges in September 2004.

CA shares closed down 25 cents, or around 1 percent, at $25.51 in Monday trading on the New York Stock Exchange.

REUTERS OM RAI0208 .2 billion accounting fraud at the software company.

Kumar, who left Computer Associates International Inc., the company's former name, in June 2004, acknowledged his role in improperly booking revenue at the company to meet Wall Street expectations.

In a written statement that Kumar read in court, the former CEO said: ''I know my conduct was wrong ... I apologize for my actions.'' Stephen Richards, the former head of sales at Computer Associates also pleaded guilty to securities fraud and obstruction of justice charges at a hearing before Judge Leo Glasser in U.S. District Court in Brooklyn.

In a hearing lasting more than two hours, the judge read out the more than 40-page long indictment.

Kumar and Richards were both named in a nine-count indictment with eight charges against each executive. The charges range from conspiracy to commit securities fraud, conspiracy to obstruct justice, obstruction of justice.

Richards was also charged with committing perjury and Kumar was charged with making false statements.

Both men initially pleaded not guilty to criminal charges in September 2004.

CA shares closed down 25 cents, or around 1 percent, at .51 in Monday trading on the New York Stock Exchange.

REUTERS OM RAI0208

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