Computer Associates Co-Founder Led $2.2 Billion Accounting Fraud

Computer Associates is a well known computer software company that was established in 1976 by Charles Wang and a few others. However, Charles Wang and a few other former executives participated in a $2.2 Billion accounting fraud against Computer Associates. How did they do this? Wang and the others inflated the profit margin of the company to raise the company's stock.

Computer Associates, the company that was hurt in this fraud, is going to pursue civil actions against Wang and the others. Computer Associates is seeking $500 Million against Wang and his circle of criminals. Wang also has to repay Computer Associates money he earned in stock while he was in the management of the company.

Other executives that were involved in the scheme were Sanjay Kumar, former CEO; Petere Schwartz, former chief financial officer; David Kaplan, former head of financial reporting; Stephen Richards, former head of worldwide sales; David Rivards, former head of sales organization; Steven Woghin, former general counsil; and Ira Zar, former chief financial officer. Sanjay Kumar, the former CEO of Computer Associates, is already facing prison time for such accounting fraud. (Newsday)

Charles Wang himself had this to say about the situation at hand:

"This fallacious report does not serve the best interest of shareholders, customers, and employees." Charles Wang also noted that he was appalled at the situation."

Also:

"As the founder of CA (Computer Associates), I am devastated by what has happened to the company and feel personally wronged by Sanjay Kumar and the management team he installed."

It is a sad to see that greed is truly getting to the heads of such people with high power in such highly regarded technological software companies such as Computer Associates. Where power is gained by an individual in a company, the more chances they have to gain extra revenue for their own personal use. When someone abuses their power to such a high degree to steal millions of dollars for their own use, you can tell that the greed has corrupted their mind.

Since it has been found by the committee that Mr. Wang was the leader in this corrupt accounting fraud, many people are celebrating by saying "I told you so". (Newsday). Such people as this include William Brewer, a lawyer that defended Sam Wyly, a stock holder for Computer Associates.

Questions/comments? E-mail me at chem1calburn@yahoo.com or simply message me via Associated Content.