The water is getting hotter for a couple of former executives at CA who are awaiting trial on charges of fraud and obstruction of justice in a $2.2 billion accounting scandal.
Federal prosecutors filed a letter earlier this month with the U.S. District Court accusing former CEO Sanjay Kumar of wiping out his laptop's memory--and potential evidence--by reformatting its hard drive to run Linux. The government also says former sales executive Stephen Richards created a directory labeled "incinerate" on his computer soon after receiving a subpoena from the Securities and Exchange Commission. Kumar's defense attorney called the charges "baseless" and said his client looks forward to an opportunity to clear his name in court.
Although Kumar and Richards were both ousted in 2004, Kumar is still a top shareholder in the company. The charges and impending April trial could prove distracting for a company trying to improve its reputation and transform its operations under new management.
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