Litigation Release No. 19730 / June 19, 2006

Accounting and Auditing Enforcement Release No. 2442 / June 19, 2006

SEC v. Sanjay Kumar and Stephen Richards, 04 Civ. 4104 (E.D.N.Y.)(Glasser, I.L.)

Judgments Imposing Permanent Injunctions and Officer and Director Bars Entered Against Defendants Sanjay Kumar and Stephen Richards

The Securities and Exchange Commission announced that on June 14, 2006, the United States District Court for the Eastern District of New York entered partial judgments on consent against Sanjay Kumar and Stephen Richards, respectively the former CEO and Head of Sales at Computer Associates International, Inc., ("CA"). Previously, on April 24, 2006, Kumar and Richards each pleaded guilty to eight felony criminal charges in a related criminal case brought by the United States Attorney's Office for the Eastern District of New York.

Kumar and Richards consented, without admitting or denying the allegations against them, to a judgment that imposes permanent injunctions prohibiting Kumar and Richards from violating Section 17(a) of the Securities Act of 1933, Sections 10(b), 13(a) and 13(b) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-13, and 13b2-1 promulgated thereunder. In addition, the court permanently barred both Kumar and Richards from serving as an officer or director of a publicly held company.

On September 22, 2004, the Commission filed complaints alleging that Kumar and Richards violated the anti-fraud and other provisions of the federal securities laws. The Commission alleged that from 1998 to 2000, CA routinely kept its books open to record revenue from contracts executed after the quarter ended in order to meet Wall Street quarterly earnings estimates. In total, CA prematurely recognized over $3.3 billion in revenue. In addition, Kumar and Richards obstructed the Commission's investigation into the company's accounting practices.

The Commission's claims for disgorgement and civil penalties against Kumar and Richards remain pending.

The SEC acknowledges the assistance and cooperation of the United States Attorney's Office for the Eastern District of New York and the Federal Bureau of Investigation in this matter.

For further information see Litigation Releases No. 18552 (January 22, 2004), No. 18665 (April 8, 2004), No. 18891 (September 22, 2004), and No. 18954 (November 2, 2004).