Saturday, April 14, 2007
A report by a special litigation committee at Computer Associates, Inc., described a "culture of fear" under founder and chair Charles Wang, who the report says oversaw the decades-long accounting fraud that was the subject of a recently concluded federal investigation. According to the report, Wang put inexperienced managers in charge and fired those who disagreed with him. In addition the company lacked internal controls. The report, which was in response to a shareholders' derivative suit, says that the corporation should take steps to recover at least $500 million from Wang and that the derivative action should be dismissed. Wang took issue with the report and blamed the company's troubles on Sanjay Kumar, who this week agreed to pay $800 million and is going to prison to serve a 12-term sentence. Wang himself was never charged. See NYTimes, CA Says Its Founder Aided Fraud; WSJ, Directors' Probe Ties CA Founder To Massive Fraud.