Islandia, N.Y. (April 9, 2004) -- Three former executives of software provider Computer Associates have reportedly settled with the Securities and Exchange Commission over allegations of accounting fraud.
Former chief financial officer Ira Zar, former vice president of finance David Rivard, and former senior vice president of finance David Kaplan, were also expected to plead guilty to charges of securities fraud and obstruction in federal court in Brooklyn according to published reports.
The three neither admitted nor denied wrongdoing and agreed to a permanent bar from serving as an officer or director of a public company. The SEC said fines against them will be assessed at a later date, The Wall Street Journal reported.
The trio were accused of booking software contracts after the quarter end, which subsequently led to the company prematurely recognizing roughly $1 billion in revenue.
In October, Zar, Rivard and another executive, Lloyd Silverstein, were dismissed. Kaplan exited the company two months later. Silverstein subsequently pleaded guilty in January to obstruction of justice.
-- WebCPA staff
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