CA said yesterday that it has revoked its agreement to provide Kumar with an office, an administrative assistant, telephone and network services and support, and certain home security services, as a result of his indictment.
The perks were among several detailed in an August letter from the company to Kumar’s lawyer, following his resignation. The deal gives CA the right to terminate these post-employment benefits after giving 60 days notice.
CA said it has not revoked part of the deal that has the company pay for medical insurance and the associated tax liability for the whole Kumar family. That expires in 20 years, or when Kumar dies, or when he gets a new job.
Kumar is pleading not guilty to charges of conspiracy to commit securities fraud and obstruction of justice that came at the end of a two-year investigation government into the now-acknowledged accounting fraud at the company.
It appears that Kumar’s defense will argue that any accusations of his involvement in the scam come from former CA employees who have already cut plea deals with the government. He faces up to 100 years in jail if convicted on all counts.
CA has admitted that its employees cooked the books in its fiscal 2000 by keeping sales accounts open after legal reporting periods had ended. The practice, known as the 35-day month, led to $2.2bn being incorrectly accounted for.
