|By Maureen O'Gara||
|June 7, 2004 12:00 AM EDT||
Sources say Kumar finally pulled the ripcord because the government is preparing to indict him in the next week or two, capping the twin investigations into CA's books that the SEC and the Justice Department have been conducting for over two years.
The parallel investigations uncovered billions in prematurely booked revenues that inflated CA's stock price.
The government is reportedly finally ready to move against Kumar now that it has dealt with Long Island-based Symbol Technologies Inc.
The same federal offices have been handling both the Symbol and CA cases and their plate has been kind of full, but last week 11 of Symbol's former executives were charged with fraud, and criminal indictments were handed down against eight former Symbol officials including its president and chief executive officer.
Despite the reports of Kumar's imminent indictment, CA Friday stonewalled and refused to discuss the issue, or anything else for that matter beyond its canned statement. The government is also mum.
The official statement CA issued Friday had Kumar explain his departure by saying, "It has become increasingly clear to me in the past few days that my continued role at CA is not helping the company's efforts to move forward. I understood that my stepping down as chairman and CEO represented a break with the past, but I have reluctantly concluded that as long as I hold any position, focus on past issues and my current role will continue."
Kumar said in the statement that he hoped his departure "will permit CA to move forward" and from a canned quote added to the press release by CA's recently installed new chairman Lewis Ranieri, one of its board of directors, it's transparent that Kumar's departure is meant to appease the government prosecutors, who have publicly branded CA a "corrupt culture " and have wanted Kumar out for months.
The CA board, Ranieri said, "is committed to reaching a settlement of the government's investigation into the company's past accounting practices as quickly as possible. We are working hard to take the remedial steps necessary to put this entire matter behind CA. Sanjay's decision to leave CA was made in that spirit."
CA, of course, is trying to avoid getting hauled into court itself as the government has threatened.
Sources claim that Kumar blew any chance to cop a plea by not throwing himself on the tender mercies of the government prosecutors a year ago. Subsequently, CA and Kumar's reactions have been a series of too-little-too-late concessions reportedly driving the chief prosecutor to remark a few days ago that she was "done with them f@*king with me."
Kumar stepped down as chairman and CEO of CA six weeks ago, but was believed to be still running the company through a puppet regime consisting of Ranieri, interim CEO Ken Kron, another CA board member, and HP émigré Jeff Clarke, who was brought in recently to replace CA's ousted CFO Ira Zar, the first CA executive to fall to the government probe last October.
Clarke was made COO as well as CFO when Kumar styled himself chief software architect.
The government reportedly saw through Kumar's governance ploy, and its desire to hang Kumar's scalp from its lodge pole, already finely honed by the fact that CA's internal audit committee's investigation of the fraud absolved Kumar of any wrong-doing or responsibility, sources say, was further exercised when Kumar was lauded at CA World and in the press days after he gave up his CEO title.
Heck, the government was ticked that Kumar even showed up at the user conference and its mood didn't improve when CA subsequently let it out that it had offered to buy the government off with a measly $10 million fine to keep the company out of court.
Apparently CA was supposed to keep that offer, which it described as an "initial" one, to itself and didn't have to take a reserve to cover it like it did. Taking the reserve in the financial statement CA filed with the SEC covering its fiscal fourth quarter a few days ago made the offer grist for the press mill.
The government, however, reportedly thought it was exactly the wrong message to send to the market. Presumably one of the reasons the government felt it was inappropriate was the fact that CA was offering to pay for the sins of its officials with stockholder money. In addition, the size of the offer in no way mirrors the size of CA's fraud and it did not accomplish the government's goal of ousting Kumar.
Kumar's ultimate departure - despite the fact that he'll be using up vacation time until the end of the month, according to Newsday - makes him something of a Robespierre figure.
Since last October, CA has thrown most of its senior managers, one by one, to the government probe, hoping to placate the righteous blood lust of the federal prosecutors and save Kumar.
In the long run, the stratagem failed to protect Kumar and not only prolonged CA agonies, but also backfired in Kumar's face.
So far four former CA executives, including its ex-CFO and three other financial guys, have pleaded guilty to charges of securities fraud and obstructing justice. The testimony they gave to the court implicated a high-ranking grey eminence publicly identified so far only as "Executive A" widely identified as Kumar.
Meanwhile, CA's battered executive ranks have retracted again. The company's senior VP of corporate communications Charlie Holleran has reportedly bailed out to go to Ford.
|bentover 06/10/04 10:43:44 AM EDT|
This is the perspective of an ex-CA employee. This company stinks from the top to the bottom. Questionable practices abound. Marginal employees are commended while those who threaten others professionally are ousted. Old-timers advise new blood to shut up and put up with questionable activities. CA should be indicated as a corporation. Let the carnival begin.
|Nivlem 06/08/04 09:41:16 AM EDT|
I remember S. Kumar form the mid 80s in SC. He was a scheming person then. Finally, the evils of his ways has caught up with him. Time to pay the piper.
|Tim 06/08/04 06:51:24 AM EDT|
Could it be true Kumar miss that the stock values were inflated? We haven’t been able to get a true financial picture of our operation since we instituted Computer Associates (CA) LMP programs. Why should we believe their financial records are better than ours?
|Anthony Friday 06/08/04 02:15:19 AM EDT|
I am surprised at the level of vehemence in some of the feedback to this forum. To all of CA's detractors who "hope they go bust" - perhaps they should consider the millions of dollars poured into community relations programmes around the world, consider the sponsorship of the Smile Train, consider the KaBoom playgrounds, and consider the robust software driving many of the Fortune 1000 companies. CA is more than a set of accounting practices. It is a thriving company with a solid and ethical "employee" culture that strongly focuses on delivering real value for both its clients and the community in which it operates. In case you haven't already guessed - I am a CA employee - and proud of it.
|Ray Mossom 06/08/04 12:16:45 AM EDT|
As an ex employee of the Legent Corporation who CA bought in 1995. All I can say is that I am pleased to see CA finally get their just desserts. Good riddance to them is all I can say I hope they go bust.
|Just Desserts 06/07/04 10:30:36 PM EDT|
The shenanigans of CA and its executives finally caught up with them. It's been 13 years since I met Sanjay Kumar and I've waited patiently and hopefully to see him get what he deserved. I, for one, will be in the courtroom for his sentencing and expect to be tossed out because of my cheering.
|TheTruth 06/07/04 08:16:39 PM EDT|
All of these clowns that game the market should be forced into bankruptcy and locked away for a long, long time. People are trying to build retirements by investing in these companies run by deceit and inflated earnings They're much worse than common criminals. Take them down.
|David 06/07/04 01:35:25 PM EDT|
Shouldn't it be "CA Finally Abandons Kumar"?
|CAproblems 06/07/04 11:16:23 AM EDT|
So now we know he meant it when last week he wrote, in his last official e-mail to CA's 15,000 employees:
"I was getting in the way of progress."
|FallFromGrace 06/07/04 11:03:46 AM EDT|
yet just a few days ago he still had his feet firmly under the desk:
Kumar, whom the board in April awarded three-year stock grants valued at $8 million and a half-million options, does not appear to have significantly altered his daily routine since stepping down last month. He still jets around the world to visit with clients, plays ambassador to the new executive team with its biggest international clients and partners, and remains a regular fixture at CA, occupying in his old office. In an interview Sunday he spoke of the "moral obligation" he felt toward CA, which he called "part of my DNA...It's 17 years of what's in my head."
Kumar said while he's no longer involved in the company's financial affairs, his other responsibilities keep him as busy as ever. "If I wasn't so busy I'd probably miss a lot of things," he said.
SYS-CON Events announced today that SoftLayer, an IBM company, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015 at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place November 3–5, 2015 at the Santa Clara Convention Center in Santa Clara, CA. SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from ...
Apr. 19, 2015 08:45 AM EDT Reads: 2,389
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
Apr. 19, 2015 08:30 AM EDT Reads: 5,616
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
Apr. 19, 2015 08:15 AM EDT Reads: 3,699
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
Apr. 19, 2015 08:00 AM EDT Reads: 4,870
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
Apr. 19, 2015 08:00 AM EDT Reads: 1,610
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
Apr. 19, 2015 07:00 AM EDT Reads: 2,286
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
Apr. 19, 2015 07:00 AM EDT Reads: 2,314
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
Apr. 19, 2015 06:45 AM EDT Reads: 2,533
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
Apr. 19, 2015 06:30 AM EDT Reads: 2,197
SYS-CON Events announced today that On the Avenue Marketing Group, a sales and marketing firm that utilizes events to market and sell products to consumers, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. On the Avenue Marketing Group (OTA) is a sales and marketing firm that utilizes events to market and sell products to consumers. On behalf of our clients, we attend thousands of fairs, festivals, expos, concerts, conferences, and sporting events annually, helping them reach millions of individuals ...
Apr. 19, 2015 06:30 AM EDT Reads: 3,169
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that prevent them from doing so. The Company is uniquely positioned to help address these challenges thro...
Apr. 19, 2015 06:15 AM EDT Reads: 2,772
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Apr. 19, 2015 06:00 AM EDT Reads: 2,444
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® and DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Apr. 19, 2015 05:45 AM EDT Reads: 1,777
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Things. Akana enables enterprises to share data as APIs, connect and integrate applications, drive part...
Apr. 19, 2015 05:00 AM EDT Reads: 1,816
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and sim...
Apr. 19, 2015 04:45 AM EDT Reads: 1,753
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
Apr. 19, 2015 04:30 AM EDT Reads: 1,859
SYS-CON Events announced today that StorPool Storage will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. StorPool is distributed storage software that allows service providers, enterprises and other cloud builders to run data storage on standard x86 servers, instead of using expensive and inefficient storage arrays (SAN).
Apr. 19, 2015 04:00 AM EDT Reads: 1,990
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carriers, thus providing a global perspective of the end-user experience. Site24x7 supports monitoring H...
Apr. 19, 2015 02:30 AM EDT Reads: 1,832
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-critical systems. ISS has completed many successful projects in Healthcare, Commercial, Manufacturing, ...
Apr. 19, 2015 02:15 AM EDT Reads: 2,400
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
Apr. 19, 2015 02:00 AM EDT Reads: 1,016