A Special Litigation Committee at CA released a report on Friday blaming the co-founder of the company, Charles Wang, for accounting fraud and recommending he be sued for damages and the value of the stock he received.

Wang, according to various reports, has vehemently denied any charges of misconduct, blaming former CEO Sanjay Kumar for the $2.2-billion fraud which rocked the company.
The Committee's Bill McCracken says in a statement released by CA: "We conducted an independent, in-depth and extensive factual investigation, which included 90 interviews and the review of millions of pages of documents. We believe that we have reached the right conclusions regarding settlements, claims and dismissals."
IDG reports that the Committee was formed to investigate "a massive accounting fraud perpetrated by the Company's senior-most executives from as far back as the late 1980s through 2001, and their cover-up of that fraud, which lasted through mid-2004."
The Committee's report charges a "profound failure of leadership" and says it never outgrew a "start-up mentality… that was incompatible with a publicly-traded, multi-billion dollar, international software enterprise." Furthermore, the report stated, "The fraud pervaded the entire CA organisation at every level, and was embedded in CA's culture, as instilled by Mr Wang, almost from the Company's inception."
The committee charged Wang with causing additional harm to CA by creating a "culture of fear" and surrounding himself with young executives whom he and Kumar could easily dominate.
As an example, the Committee pointed to Ira Zar, who was named CFO in June 1998, a 36-year-old at the time who had no professional experience outside of CA, and was not a certified public accountant. Zar "lacked the stature and experience to recognise, and prevent, the serious ramifications of the 35-day month practice" the report says.