US IT pro pleads guilty in stock fraud scandal
A former executive with Computer Associates International Inc pleaded guilty to obstructing justice by trying to buy the silence of potential witnesses in a stock fraud scandal at one of the world's largest software companies, prosecutors said.
By Agencies |
NEW YORK: A former executive with Computer Associates International Inc pleaded guilty to obstructing justice by trying to buy the silence of potential witnesses in a stock fraud scandal at one of the world's largest software companies, prosecutors said.
Thomas Bennett, 50, faces up five years in prison at sentencing on Oct 12. A call to his attorney was not immediately returned.
Bennett was senior vice president in charge of business development for Computer Associates, which since has become known as known as CA Inc.
Federal prosecutors in Brooklyn alleged that Bennett conspired with other executives to secretly manipulate over $2 billion (now euro1.6 billion) in revenue in 1999-2000 to prop up the company's stock price.
When the scheme began to unravel, Chief Executive Sanjay Kumar authorized Bennett to pay millions of dollars to clients to stop them from reporting the accounting fraud to the FBI and the Securities and Exchange Commission, prosecutors said.
In April, Kumar and the company's former head of worldwide sales, Stephen Richards, pleaded guilty to obstruction of justice and securities fraud charges. They face up to 20 years in prison at sentencing on Sept 12, their terms are likely to be less.
With 15,000 employees worldwide, CA Inc is the world's fifth-largest software provider.
Thomas Bennett, 50, faces up five years in prison at sentencing on Oct 12. A call to his attorney was not immediately returned.
Bennett was senior vice president in charge of business development for Computer Associates, which since has become known as known as CA Inc.
Federal prosecutors in Brooklyn alleged that Bennett conspired with other executives to secretly manipulate over $2 billion (now euro1.6 billion) in revenue in 1999-2000 to prop up the company's stock price.
When the scheme began to unravel, Chief Executive Sanjay Kumar authorized Bennett to pay millions of dollars to clients to stop them from reporting the accounting fraud to the FBI and the Securities and Exchange Commission, prosecutors said.
In April, Kumar and the company's former head of worldwide sales, Stephen Richards, pleaded guilty to obstruction of justice and securities fraud charges. They face up to 20 years in prison at sentencing on Sept 12, their terms are likely to be less.
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With 15,000 employees worldwide, CA Inc is the world's fifth-largest software provider.
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