The disgraced ex-CEO of CA, Sanjay Kumar, begins his 12-year prison sentence for accounting fraud tomorrow.
The jail-term is in addition to $798-million in restitution that Kumar has been ordered to pay investors. A restitution fund of $1-billion has already received $225-million from CA and Kumar has been ordered to pay an additional $52-million by the end of next year. The balance will be paid in monthly installments deducted from Kumar's future salary.
Kumar's attorney, Lawrence McMichael told Computerworld that Kumar would report on Tuesday "as per our agreement with the government." He adds that the location of Kumar's imprisonment is confidential, but a June order by District Court Judge I. Leo Glasser sent Kumar to a minimum security federal prison camp in Fairton, New Jersey.
Glasser wrote in the June order that "there is no need for Mr Kumar to be designated to a facility with greater than a minimum security designation," and waived a Bureau of Prisons policy that requires any sentence of more than 10 years to be served in a more secure prison.
Computerworld goes on to report that while Kumar readies himself for prison, CA is awaiting federal court permission to sue CA co-founder Charles Wang for damages related to accounting fraud started at the company (then Computer Associates) in the late 1980s through to 2004. In April, a Special Litigation Committee at CA advised suing Wang, saying CA was embedded with a culture of fraud instilled by Wang, and that CA should seek court permission to move forward.
Wang, who mentored Kumar and retired from CA in 2002, has denied any wrongdoing and has rejected the Committee's recommendation.