A federal judge signed an order Friday requiring former CA chief executive Sanjay Kumar to pay US$52 million in restitution by the end of 2008 out of the $US798 million still owed to investors over a CA accounting fraud scandal dating back to 1999.
Kumar, 45, who appeared before the judge, was also given an extension until Aug. 14 to report to prison to begin serving a 12-year sentence. The extension is intended to give Kumar time to liquidate his assets and pay the first $US50 million in restitution, according to the order signed by U.S. District Court Judge I. Leo Glaser in Brooklyn, New York.
An earlier provisional fine against Kumar of $US8 million was dismissed in the order as a condition of the restitution.
The "appropriate" amount of restitution in the case is $US1.023 billion, according to the order, but CA paid $US225 million of that total, leaving about $US798 million of restitution against Kumar. It is not clear whether Kumar will ever pay close to the $US798 million because he is only required to pay $US52 million, plus 20% of his total annual income upon release from incarceration. Kumar's combined assets are not described in the order.
The order was signed by Kumar and his attorney, Lawrence McMichael, of Dilworth Paxon in Philadelphia, as well as by members of U.S. Attorney Roslynn Maskopf's office in Brooklyn. The order affects Kumar's family and was signed by his wife Sylvia Kumar, listed as guardian for their two children, as well as a trustee of the Kumar Kids Real Estate Trust and the Kumar Family Trust.
Kumar pleaded guilty last April to a conspiracy to improve CA sales in 1999 and 2000 and of interfering with a federal investigation in the matter. In November, he was sentenced to 144 months in prison, and was due to report Feb. 27, but that date had been extended until the restitution order was made.