Company Frauds So Terrible You Won’t Believe They Actually Happened

Computer Associates Defers Prosecution

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After being charged with securities fraud, conspiracy and obstruction of justice in connection with a multi-billion dollar accounting scandal, Computer Associates Chairman Sanjay Kumar had his prosecution deferred. The deferment came about after the company agreed to pay shareholders $225 million as part of a settlement.

In 2006, when Kumar finally was prosecuted for overstating $2.2 billion in revenue, he pleaded guilty to all charges. At the end of the trial, he was sentenced to 12 years in prison and fined $8 million. He was released from federal prison in 2017.

Joe Nacchio probably wishes he only got 12 years after his sentence came down!