Securities Exchange Act of 1934
Release No. 50598 / October 27, 2004

Accounting And Auditing Enforcement
Release No. 2130 / October 27, 2004

Admin. Proc. File No. 3-11722


In the Matter of

David Rivard, 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 Rivard ("Rivard" 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. Rivard, age 36, resides in East Setauket, New York and has been a certified public accountant licensed to practice in the State of New York. He served as Divisional Vice President and head of the Sales Accounting Department of Computer Associates ("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 Rivard in SEC v. David Rivard, (Civil Action No. 04 Civ. 1464 (I.L.G.)). On April 12, 2004, the court entered an order permanently enjoining Rivard, 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 Rivard 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 Rivard 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 Rivard failed to disclose information in response to questions by CA's independent auditors about certain of the Company's fraudulent revenue recognition practices.

IV.

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

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

Rivard 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.