Sanjay Kumar, the former chief executive of Computer Associates International Inc., was indicted on charges of securities fraud, conspiracy and obstruction of justice just as the company announced that it had reached agreements with the Department of Justice and the Securities and Exchange Commission in connection with an accounting scandal that caused it to restate $2.2 billion in revenue.
According to the 10-count grand jury indictment, Kumar and other CA executives, including former head of worldwide sales Stephen Richards, "engaged in a systemic, company-wide practice of falsely and fraudulently recording and reporting within a fiscal quarter revenue associated with certain license agreements, even though those agreements hadn't been finalized and signed during that quarter," in a practice, known as the "35-day month" or the "three-day window," which involved artificially extending months.
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