133:("Securities Act"), Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder. The Commission's complaints against defendants Kumar, Richards and Woghin allege that, based on this conduct, they violated Section 17(a) of the Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act, and Rules 10(b)-5 and 13b2-1 thereunder. The complaints further allege that under Section 20(e) of the Exchange Act, Kumar, Richards and Woghin aided and abetted Computer Associates' violations of Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder."
215:, Richards was initially placed in a minimum security prison – which would have been appropriate given the charges, except that he was not a US citizen – meaning he was not eligible for minimum security regardless of the crime. He was then placed in solitary confinement for 6 weeks whilst the paper work was processed, after which time he was released into general population with the low security prisoners.
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as a
Telephone Support Technician in 1988, Post-Sales Technician in 1989, Pre-Sales Consultant in 1990, Sales Executive in 1991, State Manager (Queensland) 1992, Managing Director (New Zealand) 1993, Managing Director (Australia and New Zealand) 1995, Senior Vice President – Sales (North East, South
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In August 2010 a federal appeals court ordered that he be re-sentenced because the district judge failed to give
Richards credit for accepting responsibility for his actions, and in October 2010 his lawyers successfully appealed his original convictions, with Judge Leo Glasser re-sentencing him to
121:
filed securities fraud charges against
Computer Associates International, Inc., and three executives; Sanjay Kumar – CEO and Chairman, Stephen Richards – Executive Vice President, Ira Zar – Chief Financial Officer and Steven Woghin – General Counsel. Although widely blamed, no charges were ever
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The most extreme incident was the second quarter of 2000, when the company reported $ 557 million in revenues beyond the $ 1.047 billion it could properly claim. The company thus reported 60 cents in earnings per share, beating the consensus Wall Street forecast of 59 cents. Without the padded
155:, or GAAP, which state that revenues should not be counted until both parties have properly signed a contract. During the four quarters of fiscal 2000, for example, the practice improperly inflated revenues by 25%, 53%, 46% and 22%, respectively. The
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East, South
Central US and Pacific Rim) 1998, Senior Vice President – Sales North America 1999, and Executive Vice President responsible for Worldwide Sales in New York in 2000. He remained in that position until his resignation in 2004.
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In April 2004 Computer
Associates International restated $ 2.2 billion in sales that had improperly during 1999 and 2000. The restatement did not change the company’s overall past financial results or current sales and profits.
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The SEC said the scheme began in 1998, possibly earlier, and continued through
September 2000. In all, the company prematurely reported $ 3.3 billion in revenues from 363 software contracts. This violated
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dictated a life sentence for
Stephen Richards if found guilty; a spokesman for the U.S. Attorney's Office for the Eastern District of New York said that he "could have faced 100 years in prison."
37:
curriculum, A Letter from Prison by
Professor Eugene Soltes briefly details the history of the case and Stephen Richards insights into the financial management practices that saw him imprisoned.
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On April 24, 2006 - two weeks before a scheduled trial, Stephen
Richards pleaded guilty to eight felonies, including securities fraud, obstruction of justice and perjury.
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368:"Computer Associates International, Inc., Sanjay Kumar and Stephen Richards, and Steven Woghin : Lit. Rel. No. 18891 / September 22, 2004"
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said the goal was to meet or beat per-share earnings estimates of Wall Street analysts, a key to keeping a company’s stock price rising.
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129:"The Commission's complaint against Computer Associates alleges that, based on this conduct, the company violated Section 17(a) of the
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https://www.bloomberg.com/news/articles/2010-10-14/ca-s-richards-s-sentence-cut-by-judge-to-time-served-for-securities-fraud
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Richards was subsequently sentenced to seven years in jail plus three years supervised release by U.S. District Court Judge
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a scheme to inflate sales and profits by pretending lucrative contracts were signed earlier than, in fact, they had been.
147:", involved backdating of contracts to prop up quarterly revenues and earnings figures to meet market expectations.
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http://www.infoworld.com/article/2641878/techology-business/former-ca-sales-exec-gets-seven-years-in-jail.html
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He was released from Taft
Correctional Institute in October 2010. He was immediately taken into custody by
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http://www.itbusinessedge.com/cm/blogs/tennant/as-charles-wang-s-world-crumbles-justice-is-served/?cs=44601
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accounting scandal led to his resignation; he was the second CA executive to be indicted and sentenced.
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101:, he was subsequently sentenced to seven years in jail in 2006. Beginning in 2007 he spent 44 months in
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revenue, earnings would have been a mere 5 cents per share and the stock price might well have fallen.
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26:, to become the Executive Vice President responsible for Worldwide Sales. His role in the company's
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http://www.nbr.co.nz/article/nz-s-biggest-white-collar-crim-wins-early-release-la-jail-131831
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He was subsequently CEO of MetiLinx and then Vertigo Software in California from 2004-2006.
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is a New Zealand-born technology industry business leader who rose through the ranks of
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49:, New Zealand on February 7, 1965 and is the oldest of three siblings. He attended
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81:), and then began his career at Computer Associates beginning at the helpdesk in
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New Zealand Herald: New Zealand's Biggest White Collar Crim Wins Early Release
303:"A Letter from Prison - Case - Faculty & Research - Harvard Business School"
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with a degree in Business Administration he spent a short period of time at
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where he works with a technology company and speaks about his experiences.
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http://investor.ca.com/secfiling.cfm?filingID=356028-04-74&CIK=356028
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http://amlawdaily.typepad.com/stephen%2520richards%2520--%2520letter.doc
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The fraud, "what came to be known by Computer Associates employees as a
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IT Business Edge: As Charles Wang's World Crumbles, Justice is Served
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Indicted on fraud charges in 2004, along with Computer Associates CEO
328:"Eugene F. Soltes - Faculty & Research - Harvard Business School"
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Services and held for a month whilst they processed his deportation.
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degree. Richards has been married twice, and has five children.
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AM Law Daily Memorandum Re: Re-Sentencing of Stephen Richards
544:"Computer Associates Restates Timing of $ 2.2 Billion in Sales"
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Bloomberg: CA's Richards' Sentence Cut by Judge to Time Served
268:"Computer Associates Restates Timing of $ 2.2 Billion in Sales"
492:"Former IT boss jailed for 12 years over '35-day month' scam"
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https://www.sec.gov/litigation/litreleases/2006/lr19912.htm
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InfoWorld: Former CA Sales Exec Gets Seven Years in Jail
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where he studied business. He graduated in 1987 with a
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518:"How Serious Was the Fraud at Computer Associates?"
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593:"Former CA sales exec gets seven years in jail"
394:"2 Years in Prison for Ex-Software Executive"
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179:United States Federal Sentencing Guidelines
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234:U.S. Immigration and Customs Enforcement
153:Generally Accepted Accounting Principles
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211:. Due to an error on the part of the
680:People educated at Upper Hutt College
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45:Stephen Donald Richards was born in
591:China Martens (November 15, 2006).
503:from the original on May 25, 2022.
473:"CA's ex-CEO is indicted on fraud"
392:Jones/Ap, Dow (January 17, 2007).
122:filed against the founder and CEO
119:Securities and Exchange Commission
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670:New Zealanders convicted of fraud
542:Berenson, Alex (April 27, 2004).
428:"CA Says Its Founder Aided Fraud"
426:Berenson, Alex (April 14, 2007).
24:Computer Associates International
266:Alex Berenson (April 27, 2004).
245:Stephen Richards now resides in
291:. November 6, 2006. p. 15.
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205:Taft Correctional Institution
103:Taft Correctional Institution
117:On September 22, 2004, the
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285:"Kumar Gets Hard Time".
575:SEC Filing Restatement
203:He was incarcerated at
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685:People from Lower Hutt
131:Securities Act of 1933
69:After graduating from
479:. September 22, 2004.
247:Queensland, Australia
41:Early life and family
522:Knowledge at Wharton
499:. November 3, 2006.
59:Bachelor of Business
75:Ernst & Whinney
20:Stephen D. Richards
609:SEC Release 19912
548:The New York Times
432:The New York Times
398:The New York Times
272:The New York Times
51:Upper Hutt College
497:independent.co.uk
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224:time served.
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144:35-day month
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28:35 day month
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372:www.sec.gov
332:www.hbs.edu
307:www.hbs.edu
659:Categories
253:References
241:Later life
188:Sentencing
173:Punishment
47:Lower Hutt
597:InfoWorld
556:0362-4331
440:0362-4331
406:0362-4331
501:Archived
477:CNN.com
229:Release
93:Charges
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65:Career
77:(now
563:2022
552:ISSN
529:2022
447:2022
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314:2022
177:The
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