SUBSCRIBE E-NEWSLETTERS AWARDS COLUMNS MULTIMEDIA CONFERENCES ABOUT US RESEARCH
Timeline

Friday, June 16, 2006
Write To The Editor Reprints

Here are some key stops along the route from the founding of Computer Associates through its recent travails and ongoing turnaround.

1976

* Computer Associates International Inc. is founded by Charles B. Wang and Russell Artzt.

1987

* Sanjay Kumar becomes a CA employee when CA acquires Texas-based software company UCCEL, which employed him.

July, 1999

* Kumar becomes aware of a "35-day month" accounting practice at CA involving keeping the books open several days after the end of each quarter to inflate reported software licensing revenue. The scheme ultimately resulted in premature booking of revenue totaling $2.2 billion. CFO Ira Zar is also aware of the practice.

July, 2000

* Kumar named CEO. Wang stays on as board chairman.

Early 2002 

* Several class-action lawsuits challenge CA's accounting practices.

* Federal investigators also begin looking into questions about accounting practices at CA.

July, 2002

* Andy Goodman joins CA as Senior Vice President of Human Resources.

Late 2002

* Wang retires as Chairman of the Board; Kumar assumes Chairman title, in addition to CEO.

Oct. 8, 2003

* CA's audit committee publicly announces a determination that CA had prematurely recognized revenue in fiscal 2000. CA begins cooperating with federal investigation into CA's accounting practices.

* Zar and financial executives David Kaplan and David Rivard are fired.

* CA reveals that the fired financial executives had falsely denied to CA's audit committee their participation in the manipulation of financial records.

April 8, 2004

* Zar, Kaplan and Rivard plead guilty to financial fraud charges.

April 21, 2004

* Amid deepening turmoil over accounting issues, Kumar leaves CA's board, but is named to a new position, Chief Software Architect.

* Lewis Ranieri, a CA board member since 2002, replaces Kumar as Chairman of the Board.

* Kenneth D. Cron, a director of CA since 2002, is named interim CEO.

June 4, 2004

* Kumar resigns as Chief Software Architect and leaves CA.

Sept. 21, 2004

* Kumar and former head of worldwide sales, Stephen Richards, are indicted on charges of securities fraud and obstruction of justice.

Newsletter Sign-Up:

Benefits
HR Technology
Talent Management
HR Leadership
Inside HR Tech
HRENow
Special Offers

Email Address



Privacy Policy

* Former CA General Counsel Stephen Woghin pleads guilty to similar charges.

* Woghin and Richards leave the company.

Sept. 22, 2004

* CA announces its agreement to pay $225 million in restitution to fraud victims, and was placed on a strict 18-month probation agreement to avoid further charges.

November, 2004

* Former IBM executive John Swainson named President and "CEO-elect."

February, 2005

* Interim CEO Cron leaves; Swainson becomes CEO.

July, 2005

Goodman is promoted to Executive Vice President of Human Resources

April 24, 2006

* Kumar and Richards plead guilty to securities fraud and obstruction of justice charges. U.S. Attorney Roslynn Mauskopf said the pleas were the culmination of an investigation into "a culture of corruption and fraud" at CA.

Spring, 2006

* Swainson tells CA shareholders in the company's annual report that "despite the management turmoil of the last few years, [CA employees] have stayed focused on their jobs and their customers and deserve an enormous amount of credit for the company's survival."

Sept. 12, 2006

* Scheduled sentencing date for Kumar and Richards.

Copyright 2014© LRP Publications