NEW YORK -- A judge has signed off on a restitution agreement requiring the former chief executive of Computer Associates International Inc. to pay at least $52 million -- including proceeds from the sale of his yacht and pair of Ferraris -- to victims of a huge accounting fraud at one of the world's largest software companies.
US District Judge Leo Glasser approved the deal yesterday after a brief hearing in Brooklyn at which a special master overseeing a restitution fund said that tens of thousands of people who lost money on the company would recover only a small fraction of their investments.
The agreement with Sanjay Kumar, who was sentenced to 12 years in prison in November for his role in the scandal, would theoretically make him liable for as much as $798.6 million in payments to investors.
Prosecutors acknowledge, though, that Kumar and his family will probably never have enough money to pay that amount.
Also yesterday, founder and former Computer Associates chairman Charles Wang was accused of directing and participating in fraudulent accounting, according to The Wall Street Journal.
A special committee of the firm's board of directors made the accusations in a court filing in Delaware, the paper reported.
Wang said in a statement he is "appalled" by the report. "I intend to vigorously defend my good name and fight any and all efforts to place the crimes of Kumar and his management team at my feet," he said.
Wang stepped down as chief executive in 2000 and resigned as chairman in 2002, the paper said.
The company formed a committee in 2005 to investigate accusations and recover funds for the company.
In addition to Wang, the committee named a number of executives and directors from past years for possible legal action.