Securities Exchange Act of 1934
Release No. 34-50597 / October 27, 2004

Accounting And Auditing Enforcement
Release No. 2129 / October 27, 2004

Admin. Proc. File No. 3-11721


In the Matter of

David Kaplan, CPA,

Respondent.



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ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS, PURSUANT TO RULE 102(e) OF THE COMMISSION'S RULES OF PRACTICE, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against David Kaplan ("Kaplan" or "Respondent"), pursuant to Rule 102(e)(3)(i) of the Commission's Rules of Practice.1

II.

In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.3 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.

III.

On the basis of this Order and Respondent's Offer, the Commission finds that:

1. Kaplan, 38, resides in Melville, New York and has been a certified public accountant licensed to practice in the State of New York. He served as a Divisional Vice President in charge of the Financial Reporting Department of Computer Associates International, Inc. ("CA") during the relevant period, from April 1999 through April 2000.

2. CA was, at all relevant times, a Delaware corporation headquartered in Islandia, New York. CA licenses software for computer mainframes and client server systems. At all relevant times, CA's common stock was registered with the Commission pursuant to Section 12(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and traded on the New York Stock Exchange.

3. On April 8, 2004, the Commission filed a complaint against Kaplan in SEC v. David Kaplan, (Civil Action No. 04 Civ. 1465 (I.L.G.)). On April 13, 2004, the court entered an order permanently enjoining Kaplan, by consent, from future violations of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, and aiding and abetting violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder.

4. The Commission's complaint alleged, among other things, that Kaplan engaged in a fraudulent scheme which resulted in CA improperly recording revenue and filing materially false and misleading financial statements on CA's Form 10-K for the fiscal year ended March 31, 2000, and in CA's quarterly reports on Form 10-Q for the first three quarters of fiscal year 2000. The complaint alleged that Kaplan engaged in a number of improper accounting practices that fraudulently increased CA's annual and quarterly revenue and net income in a departure from generally accepted accounting principles ("GAAP"). These practices included, among other things, prematurely recognizing revenue from software license contracts. In addition, the complaint alleged that Kaplan failed to disclose to CA's independent auditors certain of the Company's fraudulent revenue recognition practices and also failed to disclose information about these practices in response to questions by CA's outside counsel.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanction agreed to in Respondent Kaplan's Offer.

Accordingly, it is hereby ORDERED, effective immediately, that:

Kaplan is suspended from appearing or practicing before the Commission as an accountant.

By the Commission.

Jonathan G. Katz
Secretary


Endnotes

The Commission, with due regard to the public interest and without preliminary hearing, may, by order, . . . suspend from appearing or practicing before it any . . . accountant . . . who has been by name . . . permanently enjoined by any court of competent jurisdiction, by reason of his or her misconduct in an action brought by the Commission, from violating or aiding and abetting the violation of any provision of the Federal securities laws or of the rules and regulations thereunder.