The Securities and Exchange Commission is investigating whether top executives at Computer Associates, which is based in Islandia N.Y., inflated the company’s sales and profits during the late 1990’s to reach a $1.1 billion payday that was tied to the performance of the company’s stock. Prosecutors are also looking into an accounting change that Computer Associates made in 2000 that effectively allowed the company to count some of its sales and profits twice.
Dan Kaferle, a spokesman for Computer Associates, said the company was cooperating with the investigation. Neither Computer Associates nor any of its current executives have received any subpoenas, Mr. Kaferle said. “We have voluntarily provided documents,” he said. “All we know is that it’s ongoing.”.
(via New York Times)
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