Former CA Chief Alleges Cover-Up by Board

Sanjay Kumar

Former CA Inc. CEO Sanjay Kumar, already in prison on a 12-year sentence for his role in the company’s accounting fraud (and the famous “35-day month”),  now alleges that CA co-founder Charles Wang personally pressured him to close contracts after a quarter closed to meet earnings estimates.  Kumar also alleges that several longtime CA board members “took steps to protect Wang and conceal the facts.”

Newsday reports that in connection with a civil lawsuit, Kumar filed a 27-page affidavit claiming a cover-up by board members Lewis Ranieri and Alfonse D’Amato, who he says “had knowledge of” the accounting fraud for which he went to prison.

Among other claims, Kumar alleges that at Wang’s direction he closed a $32-million deal with GIE Informatique, $19 million of which was improperly recognized nine days after the quarter’s close.

Wang, D’Amato and Ranieri all denied Kumar’s allegations.

Read the Newsday article