Computer Associates Officials Plead Guilty
Rivard admitted to obstructing the government’s investigation of accounting irregularities at the company and conspiring to commit securities fraud, the New York Times reported.
David Kaplan, a former senior vice president, and Ira H. Zar, the former chief financial officer, were expected to plead guilty to similar charges later yesterday afternoon, the Times reported.
Their troubles were compounded when the Securities and Exchange Commission charged all three with accounting fraud.
The three were compelled to resign in October when questionable accounting practices came to light via a board investigation.
Zar had spent 21 years with the company. The three were in charge of sales accounting in fiscal 2000 when sales were booked as revenue before contracts were actually signed, the inquiry determined.
CA, headquartered in Islandia, NY, instituted a new accounting practice in October 2000, just after the alleged incident occurred.
In court yesterday, Rivard admitted to conspiring with other unnamed company employees to lie to lawyers hired by the company to investigation allegations of overstating revenues, the Times reported
"I knew at the time what I was doing was wrong," Rivard said, according to Bloomberg News.