Over the next two years the former chief executive of Computer Associates International Inc. has agreed to pay at least $52 million (38.43 million EUR) to victims of a huge accounting fraud at one of the world's largest software companies.
Sanjay Kumar, who was sentenced to 12 years in prison in November for his role in the scandal, has signed off on a restitution agreement that would theoretically make him liable for as much as $798.6 million (590.16 million EUR) in payments to people who lost money on the company.
Prosecutors acknowledge, though, that Kumar and his family will probably never have enough money to pay that amount.
The deal, which was filed earlier this month and is expected to be considered by a federal judge in Brooklyn on Friday, calls for Kumar to instead make installment payments of $40 million (29.56 million EUR), $10 million (7.39 million EUR) and $2 million (1.48 million EUR) by December of 2008, then pay 20 percent of his annual income once he is released from prison.
Those payments would continue for the rest of his life.
Kumar pleaded guilty a year ago to obstruction of justice and securities fraud in connection with his actions at the company, which since has become known as CA Inc.
Prosecutors said Kumar plotted to report more than $2 billion in false revenue between 1999 and 2000, and was the architect of an elaborate fraud and cover-up that included backdating contracts, lying under oath, and trying to buy the silence of a potential witness.
As part of the agreement, the government agreed not to pursue certain assets held by Kumar's relatives. It also waived an $8 million (5.91 million EUR) fine that was imposed at sentencing, with the intent of making more money available to fraud victims.
With 15,000 employees worldwide, CA Inc., based in Long Island, New York, is now the world's fifth-largest software provider.