The agreement, reached late last week in US federal court, orders Kumar to pay US$52 million to a government restitution fund by the end of next year – including US$40 million of it by the end of this month. He will be forced to liquidate his and his family’s assets to make the payments.
After he completes his prison term, scheduled to begin this month, Kumar will be required to pay 20 percent of his annual income to cover the remainder of the restitution.
Kumar, the former head of the Islandia, US-based software giant, was also fined US$8 million after pleading guilty to conspiracy, securities fraud and obstruction of justice.
He improperly stated company revenue, specifically software license profits, from 1999 to 2000 to meet investors' expectations and then lied to investigators, according to the charges against him.
Former CA CEO to pay US$800mn in fraud restitution to investors
By Dan Kaplan on Apr 17, 2007 6:51AM
Embattled former CA CEO Sanjay Kumar, who was sentenced to 12 years in prison after bogusly inflating the company's stock price to meet Wall Street's expectations, has agreed to pay about US$800 million to victims he helped defraud.
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