Stephen richards computer associates. How Serious Was the Fraud at Computer Associates? 2022-12-07

Stephen richards computer associates Rating: 6,2/10 173 reviews

Stephen Richards was a prominent figure in the world of computer science and technology. He is best known for his work at Computer Associates (CA), a global software company that he co-founded in 1976.

Richards was born in New York City in 1949 and showed an early aptitude for math and science. He attended Stony Brook University, where he studied computer science and earned his bachelor's degree in 1971. After graduation, he worked for a few years in the computer industry before co-founding CA with Charles Wang and Russell Artzt in 1976.

At CA, Richards played a key role in the company's growth and success. He helped develop and market a range of software products, including the popular CA-Sort and CA-Audit products. He also served as the company's chief technology officer and was responsible for leading the company's research and development efforts.

In addition to his work at CA, Richards was active in the larger computer industry. He served on the board of directors for the Software and Information Industry Association (SIIA) and was a member of the Computer Science and Telecommunications Board (CSTB) of the National Research Council. He was also a frequent speaker at industry conferences and events, sharing his knowledge and insights on the latest trends and technologies in the field.

Stephen Richards made significant contributions to the world of computer science and technology through his work at Computer Associates and his many other professional endeavors. His innovative and visionary approach to software development helped shape the industry and left a lasting legacy in the field.

Computer Associates' Former CEO Is Charged

stephen richards computer associates

The contracts that were backdated by a few days were real. Retrieved September 9, 2022. If the monitor finds Computer Associates is in compliance with its agreement with the Justice Department, the company will face no prosecution. Richards, 45, a native of New Zealand, pleaded guilty in November 2006 to taking part in a fraud to artificially boost quarterly revenues. Due to this allegation the company has faced much criticism that greatly impact the standing of the Computer Associates CA and requires other ways to make investigation done efficiently so, the company hire the prestigious law firm in order to investigate more aggressively. This allegation also gets the attention of the federal investigators who showed dissatisfaction with the internal investigation of the company.


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Stephen Richards former Computer Associates sales executive, exits... News Photo

stephen richards computer associates

An attorney for Richards said his client was innocent. They paid more than they should have for the stock, or kept in when, had they known the truth, they would have sold. CA is a "dramatically different organization" than it was over two years ago when Richards left the company, she added. The settlement allows Computer Associates to defer criminal prosecution. Increasingly, experts are blaming inventory fraud. Reporting by Grant McCool; editing by Andre Grenon.

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A Letter from Prison

stephen richards computer associates

Under the new model it is a time frame of one month to a maximum of three years. The company showed huge growth during the 1990s, even with the challenges and pressures. Moreover, executives at Computer Associates were big shareholders themselves, and many held enormous blocks of stock options. These shareholders suffered enormous losses once the practices were revealed. The company recorded its NPVof the licensing contract in the quarter when the revenue recognition criteria are met in accordance with the GAAP regulations.

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Former CA sales exec gets seven years in jail

stephen richards computer associates

The government also alleges top executives clearly knew what they were doing was wrong and went to great lengths to cover up. Attorney's Office has concluded its investigations into Computer Associates, which changed its name to CA Inc. Computer Associates executives are not accused of reporting nonexistent deals or hiding major flaws in the business. The New York Times. The sales managers and salespeople were used as enablers to negotiate and finalize additional license agreement while keeping the accounting books open after the end of the fiscal quarter.


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The Accounting Fraud Case At Computer Associates

stephen richards computer associates

Fraud always involves deception, confidence, and trickery. Throughout all of the major corporate frauds committed over the past 15 years, the underlying red flags and symptoms are the same. Moreover, the company offers a variety of products that include database, application and financial management software in order to meet the computing necessities of the businesses. Earlier this month, Glasser Richards is due to report to prison Feb. District Court for the Eastern District of New York, No. Retrieved September 9, 2022. Retrieved September 9, 2022.

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Financial Fraud Case Study: Stephen Richards

stephen richards computer associates

The triple Fraud Examination Chapter 1 Discussion Questions 1. Management has the ability to make choices that can opportunistically lead to higher or lower reported earnings. Computer Associates executives are accused of something far more prosaic: keeping the books open a few days after the end of the reporting period so revenues could be counted a quarter earlier than it ought to have been. The entries are distributed and cryptographically sealed and would prove very difficult to fabricate or destroy. Under Generally Accepted Accounting Principles GAAP , four conditions were required to be met in order for revenue associated with a software license agreement to be recognized: 1- persuasive evidence of an arrangement was required to have existed, 2- delivery of the licensed products was required to have occurred, 3- the license fee was required to have been fixed or determinable, 4- the collectability of the license fee was required to have been probable.

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How Serious Was the Fraud at Computer Associates?

stephen richards computer associates

Synopsis Similar to most financial frauds, the Livent, Inc. Case Analysis The case analyzes the overall situation of the Computer Associates International Inc. I would not have extended the fiscal quarters of knowingly or encourage the backdating of agreements, regardless of the overwhelming pressures by the Wall Street estimates which Richard points to analyst community in his letter. The management of the company found it hard to forecast accurate results for the revenues and earnings for each quarter in the year. Retrieved September 9, 2022.

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Stephen Richards (business executive)

stephen richards computer associates

This violated Generally Accepted Accounting Principles, or GAAP, which state that revenues should not be counted until both parties have properly signed a contract. But in practice, investors tend to focus on the quarterly revenue and earnings targets. Sentencing Richards was subsequently sentenced to seven years in jail Incarceration He was incarcerated at Re-sentencing In August 2010 a federal appeals court ordered that he be re-sentenced because the district judge failed to give Richards credit for accepting responsibility for his actions, and in October 2010 his lawyers successfully appealed his original convictions, with Judge Leo Glasser re-sentencing him to time served. Additionally, Computer Associates provides the software updates and technical support to its clients during the period of licensing. The New York Times. CA regularly issued public predications at the outset of each fiscal quarter of the revenue and earnings it expected to earn during that quarter.

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U.S. judge cuts New Zealander executive's sentence

stephen richards computer associates

How does a clearly improper practice become so firmly rooted? Both men were forced to resign in April, about two years after the scandal broke. Background Several years after Enron and its subsequent landmark regulation Sarbanes-Oxley, significant frauds in the corporate environment are still occurring. District Court Judge I. How would you handle the situation differently? As requested I have completed an analysis of the accounting fraud case at Computer Associates CA in preparation of your speech at the American Accounting Associations annual meeting. Chief Executive Sanjay Kumar was charged Wednesday with securities fraud conspiracy and obstruction of justice in connection with a multibillion-dollar accounting scandal at the software company. Moreover, Stephen Richards joined the Computer Associates, Inc. Due to the decrease in the revenue of the Computer Associates affected the stock price of the company that reduced the Computer Associates stock by 42%.

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stephen richards computer associates

The company thus reported 60 cents in earnings per share, beating the consensus Wall Street forecast of 59 cents. Richards could have faced 100 years in prison, according to a spokesman for the U. As, the company finds it more difficult to accurately forecast the revenues as well as earrings for each quarter of their sales targets. And ultimately this led to "overly aggressive accounting practices" to boost their reported earnings. Table of Contents Questions A letter from prison Executive summary This case study is about the former global head of sales Stephen Richards at the Computer Associates, Inc. Richardson argues that boards of directors and their compensation committees in particular should be careful not to inadvertently give executives incentives to cook the books. Company overview Computer Associates International, Inc.

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