US firm headed by Lankan charged with fraud
NEW YORK - A multi-billion dollar New York-based computer software company, headed by a Sri Lankan, is under federal investigation for fraudulent accounting practices.

Last week, three of its former executives pleaded guilty to one count of conspiracy to commit securities fraud and one count of conspiracy to obstruct justice.

According to the New York Times, federal prosecutors are now zeroing in on the company's chairman and chief executive Sanjay Kumar, a native of Sri Lanka who migrated to the US in the 1970s.

The company, Computer Associates, is accused of accounting tricks to overstate its sales and profits. In 1998 Kumar and two other senior executives received a $1.1 billion bonus linked to the performance of the company's stock. The three men who pleaded guilty face up to 10 to 20 years in a federal prison.

According to the Times, federal prosecutors have indicated they hope to frame charges against Kumar soon.

Top

Back to News

| Front Page | | News | | Editorial | | Columns | | Sports | | Plus | | Financial Times | | Mirror Magazine | | TV Times | Funday Times |

Copyright © 2001 Wijeya Newspapers Ltd. All rights reserved.