Computer Associates

1347 Words6 Pages
Computer Associates Ethics Paper Brief Summary: Based in Islandia, N.Y., Computer Associates dominated the market for mainstream utility software, programs that helped the computers used by big companies run more efficiently. The company also offers security & storage software. Computer Associates used variety of tricks to inflate its reported profits during the 1990’s. In October 2000, the company changed the way it sold software and the way it reported its sales. The Securities and Exchange Commission announced securities fraud charges against Computer Associates International, Inc. and three of the company 's former top executives -- Sanjay Kumar, former CEO and Chairman, Stephen Richards, former Head of Sales, and Steven…show more content…
• Richards (1) participated with other Computer Associates executives in the practice of extending Computer Associates ' fiscal quarters; (2) instructed and allowed subordinates to negotiate and obtain contracts after quarter end while knowing, or recklessly disregarding the fact that, Computer Associates would improperly recognize the revenue from those contracts; and (3) failed to alert Computer Associates ' Finance or Sales Accounting Departments that Computer Associates salespersons that reported to Richards were obtaining contracts with backdated signature dates after quarter end. • Woghin (1) signed a Form S-4 and a Form S-4 amendment that Computer Associates filed with the SEC in February and March 2000, while knowing, or recklessly disregarding the fact that, those filings contained materially false and misleading information
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