WSJ: Ex-CA Sales Chief Richards Resentenced To Time Served
14 Octobre 2010 - 11:13PM
Dow Jones News
The former sales chief for CA Inc. was resentenced to time
served Thursday after he had pleaded guilty four years ago in a
scheme to artificially boost the software maker's quarterly revenue
through backdated sales contracts.
Stephen Richards, 45, had served 44 months in prison after
pleading guilty to conspiracy, securities fraud and other charges
in April 2006. He is at Taft Correctional Institution in Taft,
Calif.
"We are absolutely ecstatic that the judge reduced Stephen
Richards's sentence and he will be reunited with his family," said
David Zornow of Skadden, Arps, Slate, Meagher & Flom LLP, which
represented Mr. Richards.
Mr. Richards started at CA, formerly known as Computer
Associates, at age 23 and worked for the company in Australia and
in New Zealand prior to 1999. He was originally sentenced to seven
years in prison in November 2006. In August, a federal appeals
court ordered that he be resentenced because the district judge
failed to give him credit for accepting responsibility for his
actions. On Thursday, U.S. Judge I. Leo Glasser in Brooklyn
resentenced him.
Mr. Richards, a New Zealand citizen, is expected to be deported
when released, a process that could take as long as 12 weeks, Mr.
Zornow said. Mr. Richards plans to relocate to Australia to be with
his family after his release, Mr. Zornow said.
Prosecutors had alleged that former CA Inc. Chief Executive
Sanjay Kumar and other executives engaged in a scheme to
artificially boost the company's quarterly results by backdating
software contracts to make it appear that the license agreements
had been signed during the quarter.
The practice was referred to internally as the "35-day month"
because it involved artificially extending reporting months,
usually the last month of a fiscal quarter, prosecutors said.
Mr. Kumar was sentenced to 12 years in prison after he had
pleaded guilty to securities fraud, obstruction of justice and
other charges in 2006. The U.S. Second Circuit Court of Appeals
upheld his sentence in August.
The Islandia, N.Y., company agreed to pay $225 million in
restitution to shareholders as part of a deferred-prosecution
agreement reached with prosecutors in September 2004. Criminal
charges were dismissed against the company in 2007.
-By Chad Bray, The Wall Street Journal; 212-227-2017;
chad.bray@wsj.com
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