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The former general counsel of US software giant Computer Associates (CA) could face 25 years in prison after pleading guilty to securities fraud.
Following a two-year investigation, Steven Woghin is one of three former CA executives facing criminal charges brought by the Department of Justice after a massive accounting fraud was discovered at the software group. Former chief executive Sanjay Kumar and former head of sales Stephen Richards are also facing charges.
Woghin pleaded guilty to one count of securities fraud and one count of conspiracy to obstruct justice. The Securities and Exchange Commission alleged that CA prematurely recognised $2.2bn worth of revenue between 2000 and 2001 and $1.1bn in prior quarters. CA has agreed to pay $225m to settle federal accounting fraud charges.
The former general counsel has been released on $500,000 bail and is due to be sentenced in December where he could face a 25-year jail term.