Thomas Bennett, 50, pleaded guilty in U.S. District Court in Brooklyn, N.Y., and is scheduled to be sentenced on Oct. 12. Bennett, a former CA senior vice president in charge of business development, faces a maximum sentence of up to five years in prison and up to a US$250,000 fine.
Bennett joins Sanjay Kumar, CA's former chief executive, who pleaded guilty in April regarding his role in the case, as did Stephen Richards, former sales executive for CA, who made his plea in April.
Bennett, a 16-year CA employee who resigned in 2004, is said to have participated in a scheme to prop up the company's financial quarterly performance to meet analysts' estimates, according to court filings.
Bennett, Kumar and other CA executives were accused of conspiring to have the company pay cash and goods to Enterprise Management Systems, which in turn would allegedly provide similar payments to CA. Revenue swapping occurs when companies exchange cash or products that they would not otherwise exchange.
As the Securities Exchange Commission and law enforcement agencies began to investigate CA's accounting practices, Bennett and other CA executives allegedly bribed an executive with Enterprise Management Systems to keep him quiet about the alleged revenue swapping. Kumar and Richards will both be sentenced on Sept. 12.
Shouldn't the title of the story have read "Former CA Executive Pleads Guilty".
I think it's very careless as I thought a current executive was in trouble with the courts.