The chairman and chief executive of Computer Associates has stepped down, as the software company's long running...
accounting scandal finally reached the top.
After heading up CA for four years, Sanjay Kumar resigned from his executive positions and the board of directors. He will take a new position of chief software architect. The chief executive officer position is temporarily remaining open.
CA is being investigated by federal prosecutors and the Securities and Exchange Commission for misrepresenting the timing of contracts in order to meet Wall Street's quarterly expectations.
"We believe the decisions we have made today are fair and responsive to the situation and in the best interests of CA's customers, shareholders and employees," said CA director Lewis Ranieri, who is taking over as chairman.
"The changes in Sanjay [Kumar]'s role are not based on the conclusion that he engaged in any wrongdoing. Nonetheless, the conduct in question occurred during his tenure, and the board felt this action was appropriate."
Four former finance executives have pleaded guilty to fraud or obstruction of justice charges, including Ira Zar, the former chief financial officer.
Zar implicated two other high-ranking executives and although their names were not disclosed, prosecutors noted that Zar reported to Kumar.
In January, a former senior vice-president who pleaded guilty said, CA had a "widespread practice" of inflating revenue by closing the books on a quarter a few days late.