The Daily Caveat is written by Michael Thomas, a recovering corporate investigator in the Washington, DC-area.

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11/16/2006
CA Associates Salesman Gets 7 Years in Fraud Connection
Stephen Richards, formerly Computer Associates chief salesman, was sentenced to seven years in prison in relation to his role in the $400 million fraud perpetrated at the business software maker. Richards entered a guilty plea back in April on a variety of charges, including: securities fraud, obstruction of justice and perjury.

A handful of other former CA execs including CEO, Sanjay Kumar and General Counsel, Stephen Woghin have also plead guity and are awaiting sentencing With Richards' help, CA artificially inflated its revenue by some $2 billion over 1999 and 2000 resulting, ultimately, in a $400 million loss for shareholders. CA itself has avoided criminal charges in the case by willingly setting up a $225 million restitution fund and cooperating with federal investigators.

-- MDT
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