New Zealander ordered by court to repay $40 million from scam

By NZPA

Thursday 14th June 2007

New Zealander Stephen Richards has been ordered by an American court to repay $US29.7 million ($NZ40 million) to shareholders of the CA software company who were defrauded in a $US2.2 billion accounting scam.

Richards, 41, formerly of Upper Hutt, is serving a seven-year prison sentence for his part in the fraud, and it was reported today that when he is released he will have 15% of his gross annual salary deducted for restitution each year.

He pleaded guilty last year to conspiracy, securities fraud, making false filings with the Securities and Exchange Commission, obstruction of justice and perjury.

Richards was one of seven former executives at the company to plead guilty to criminal charges in a scheme to artificially increase the software maker's quarterly revenue through backdated sales contracts.

The New York Times reported that at a hearing in the US District Court in Brooklyn, New York Judge Leo Glasser approved an agreement between Richards, his wife and US prosecutors over restitution

Of the $US250,000 that Richards posted for bail while awaiting sentencing, $US200,000 will go toward the restitution fund, while $US50,000 will be returned to his second wife, currently living in Australia.

Richards started working for CA as a customer service at age 23. He rapidly rose through the ranks of the company's sales division, taking over as regional managing director of Computer Associates in Sydney in 1995. He was named head of worldwide sales in April 2000 and resigned in April 2004.

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