Computer Associates set to appear in court
Published: 22 Sep 2004 14:00 BST
Computers Associates International is facing arraignment in federal court on Wednesday on criminal charges stemming from a two-year investigation into the software company's accounting practices.
Also on the court calendar, CA's former general counsel, Steven Woghin, is scheduled to make a plea in the US criminal case against him. The charges against Woghin include securities fraud conspiracy and obstruction of justice, according to one person familiar with the case.
Judge Leo Glasser is presiding over both the criminal charges made against CA and Woghin's plea at a federal court in Brooklyn, N.Y., according to the court calendar. Computer Associates is based nearby in Islandia, N.Y.
The Justice Department has agreed to defer prosecution of CA, several publications reported on Wednesday, citing unnamed sources.
According to a source, a press conference led by US Deputy Attorney General James Comey detailing the charges against the company and the deferred prosecution agreement is scheduled to take place in Washington, D.C., later on Wednesday.
The probe centres on allegations that CA, the world's fourth-largest software maker, improperly booked $2.2bn in revenue. Earlier this week, the company said it hoped to soon resolve the two-year probe.
Citing unnamed sources, The Wall Street Journal said prosecution would be deferred if CA makes certain changes to the way it does business, but the paper did not give details.
Meanwhile, the New York Post reported that the company, when it is arraigned Wednesday, is set to pay $225m to settle charges that it improperly booked sales.
Representatives of CA declined to comment on Wednesday.
Woghin's cooperation could bolster the government's case against other executives being investigated for possible involvement in fraud or its cover-up, the Journal said.
Computer Associates previously offered to pay the government $10m to settle the probe, though the company has said the actual fine could be much higher.
Reuters contributed to this story.
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