Computer Associates International Inc. has agreed to pay more than $200 million to avoid criminal prosecution in a massive accounting scandal, a federal law enforcement source told The Associated Press on Wednesday.
In addition, the company’s former general counsel, Steven Woghin, is expected to plead guilty in Brooklyn federal court Wednesday to securities fraud, conspiracy and obstruction of justice, according to the source, speaking to the AP on condition of anonymity.
The settlement was expected to be announced in Washington.
News source: eWeek The New York Post and New York Times reported Wednesday that the company’s former chairman and chief executive, Sanjay Kumar, also was expected to face criminal and civil charges, which would include securities fraud.
In April, the companyâ€”the country’s fourth-largest software makerâ€”restated its financial results from 2000 and 2001 to reflect $2.2 billion in revenue that was improperly booked.
Also that month, three former Computer Associates executives admitted that they fraudulently recorded hundreds of millions of dollars worth of contracts in a broad conspiracy to inflate the software company’s quarterly earnings.
The executives entered guilty pleas under cooperation agreements that prosecutors called an important move toward indicting other high-ranking company executives.