Former Computer Associates CEO to pay $800 million restitution James M Yoch Jr at 2:12 PM ET
[JURIST] Former Computer Associates (CA) [corporate website] CEO Sanjay Kumar [Wikipedia profile] will pay almost $800 million in restitution over his lifetime for his role in the accounting fraud in which CA swapped revenues of $2.2 billion with another company in 1999 and 2000, according to a settlement approved Friday in the US District Court for the Eastern District of New York [official website]. Kumar, who pleaded guilty [JURIST report] to charges of securities fraud and obstruction of justice in April 2006 and was sentenced [JURIST report] to a 12-year prison sentence and an $8 million fine in November 2006, is required to sell personal property to pay $52 million of the total restitution amount by the end of 2008. Although the agreement does not mandate the liquidation of his family's home, it does require Kumar to turn over 20 percent of his annual income for the rest of his life.
Kumar, who has not served any prison time yet, also faces a lawsuit filed by CA seeking repayment [JURIST report] of $14.9 million it fronted for Kumar's legal defense. The settlement comprises part of the over $1 billion in restitution due to victims of the CA revenue-swapping scheme. Reuters has more.
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