| By Maureen O'Gara |
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| April 2, 2004 12:00 AM EST |
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15,683 |
Computer Associates has taken its long-time general counsel off the case that the government's interminable investigation of CA's accounting and revenue recognition practices has been building for going on three years.
The company, which has been seriously distracted by the probe, is now looking for a new general counsel.
According to an internal memo circulated by CA CEO Sanjay Kumar last Friday Steven Woghin is tried and wants to work elsewhere in the company. According to a story in Newsday, CA's local paper, which CA subsequently denied, the company's board asked for Woghin's resignation.
As the Wall Street Journal pointed out, denying Woghin was asked to resign from the company is not the same as denying that he had been asked to resign his post.
In January, CA's former senior VP of finance Lloyd Silverstein admitted CA's books were cooked and pleaded guilty to lying to government investigators on orders from above and obstructing justice.
The chief federal prosecutor for Long Island called his plea "the first step in uncovering a corrupt conspiracy" at CA.
The company fired Silverstein along with its former CFO Ira Zar and VP of finance David Rivard after an in-house probe initiated by CA's board discovered $1 billion in prematurely recognized revenues in fiscal 2000.
The company evidently hoped to contain the damage to that year, but when Silverstein copped a plea and started cooperating with authorities he pushed the date back to 1998, suggesting that Kumar, CA founder Charles Wang and executive VP Russell Artzt inflated revenues to qualify for a $1.1 billion bonus.
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