No Word Yet on Charging CA's Wang
The U.S. federal attorney's office and CA Inc. officials aren't saying whether they’ll pursue legal action against CA founder Charles Wang for alleged accounting fraud, InfoWorld reports.
A CA board report released last week accuses Wang, who stepped down as the company’s chief executive officer in 2002, of accounting fraud that led to a steep decline in the company’s stock. Wang’s successor, Sanjay Kumar starts this month a 12-year sentence in federal prison and has agreed to pay restitution to stockholders.
The board report recommended suing Wang for damages, but CA didn't comment on its plans, in the InfoWorld article. Likewise, the “U.S. Attorney's Office for the Eastern District of New York also had no comment on whether it was pursuing charges against Wang,†the article states.
Norman Berle, a criminal defense lawyer who teaches white-collar crime at Fordham University's business school, says a civil action against Wang is likely, but that a criminal action by the federal attorney is less likely.
NEXT STORY: Busting the Myth of the Superhacker