Financial Times

Sri Lankan entrepreneur faces jail term in US
Sanjay Kumar, 44 and probably the most successful Sri Lankan-born entrepreneur in the United States, faces up to 90 years in a US jail after he pleaded guilty last week to securities fraud and obstructing justice.

Mr. Kumar, who moved to the US with his family when he was 14 and became the first Sri Lankan to head a major US company, pleaded guilty to fraud and obstruction of justice charges in New York, according to reports from the US. Mr. Kumar, whose net worth is over $500 million may have to pay a hefty fine in addition to facing a lengthy jail term.

The cases stem from a scheme that used backdated contracts to falsify the software company’s earnings. Mr. Kumar, the former CEO of Computer Associates, and Stephen Richards, the company’s former top salesman, confessed to a wide-ranging conspiracy to inflate the company’s sales in 1999 and 2000 and then interfered with the subsequent federal inquiry.

According to the indictment, the men repeatedly lied to their lawyers and to federal investigators. It added that Mr. Kumar even authorised paying $3.7 million to buy the silence of a potential witness. "I take full responsibility for my actions, and I apologize," Mr. Kumar was quoted as saying, during his plea.

Back to Business