Friday, April 13, 2007

2007-04-13 The High Cost of Backdating

For those who have steadfastly stated to me during the past 10 years that there is no way to quantify losses or potential risk of liability for time-based data manipulation, I offer the restitution arrangement agreed to by Sanjay Kumar, former CEO of Computer Associates and now convicted felon. He agreed to repay 800 million (that an 8 with 8 zeroes after the digit) for his acts, which included backdating contracts and cost Computer Associates (now CA) a bundle in earnings restatements. He actually has only $52 million to pay at the moment, but those funds are coming from his, and from his family's assets.

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