Ex-CA chief pleads not guilty to fraud
Sanjay Kumar and another former Computer Associates executive fight charges stemming from accounting practices.
Kumar's arraignment in U.S. District Court in Brooklyn, New York, came a day after the company agreed to pay $225 million to past and current shareholders to settle charges that the company improperly booked $2.2 billion in revenue.
Stephen Richards, the former global head of sales for the company, also pleaded not guilty to fraud and obstruction charges.
The two former executives were charged in a 10-count indictment returned by a grand jury on Friday and unsealed Wednesday.
Kumar denied wrongdoing in a statement issued by his attorneys Wednesday and said he expects to be exonerated.
A U.S. district court judge Wednesday approved an agreement that allows the company to avoid prosecution if it pays a fine and puts a number of remedial policies in place within 18 months.
Shares of Computer Associates were up $1.67, or 6.6 percent, to $26.97 in midday trade on the New York Stock Exchange.
Story Copyright © 2004 Reuters Limited. All rights reserved.