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Kumar's Bad Day in Court

6:05 PM -- Another bad day for Sanjay Kumar. Back in November, the former CA Inc. (NYSE: CA) CEO was sentenced to 12 years in prison and fined $8 million fine for masterminding a major accounting fraud at the software vendor. (See Down Is Not Out, CA Delays Earnings Report, and Bye Bye BrightStor.)

Today a court in New York slammed the exec in an attempt to recoup some of the $800 million losses suffered by the firm's investors. Kumar must pay $40 million into a restitution fund by the end of the month, an additional $10 million by the end of July, and another $2 million by the end of next year, according to reports.

Talk about downward mobility: The Washington Post reports that poor Sanjay has already had to sell two Ferraris and is now planning to liquidate real estate, a yacht, and more luxury cars.

Still, even $52 million is a drop in the ocean compared to the $800 million owed to investors. With this in mind, the court also ordered Kumar to pay 20 percent of any income he earns after his release until the debt is paid.

Will this money ever appear? Sadly, unless Kumar (a) wins the lottery or (b) lives until the ripe old age of 483, it seems unlikely that investors will recoup their losses. Sure, the accounting scandal did little for CA's reputation, but these are the real victims of Kumar's fraud.

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