caCA, Inc. has reached an $11-million settlement to resolve claims that the Islandia-based technology company defrauded 179 government agencies in New York, eight states and the federal government, prosecutors said.

CA, formerly known as Computer Associates, double-billed government customers when the entities renewed annual computer-software maintenance and service plans that CA sold from 2001 to 2009, according to the New York State Attorney Genera’s office.

“This agreement reimburses … government entities for years of overcharges,” said Attorney General Eric Schneiderman, “money that will go toward valuable services for taxpayers at a time when budgets are stretched thin.”

New York State will receive a total of $708,795, which will be distributed to overcharged government entities, including the MTA, Nassau County, as well as East Williston, Plainview-Old Bethpage and South Country school districts.

Those and other agencies will be reimbursed between $155 and $75,344, by far the largest sum statewide recouped by New York City.

The settlement stemmed from a 2006 lawsuit filed in Central Islip federal court under the False Claims Act by CA whistleblower employee Ann-Marie Shaw, who will receive $141,759, or 20 percent of New York’s recovery.


The fraud began a year after CA founder and New York Islanders owner Charles Wang quit as CEO, a year before he resigned as chairman of the company’s board and in the midst of a tumultuous period for the company when Wang’s successor, Sanjay Kumar, pleaded guilty to securities fraud, for which he’s serving 12 years in prison.

CA, a four-decade-old Fortune 500 company that has about 14,000 employees in more than 100 offices worldwide, reported $4.6 billion in revenue this year.


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Timothy Bolger is the Managing Editor for the Long Island Press who’s been working to uncover unreported stories since shortly after it launched in 2003. When he’s not editing, getting hassled by The Man or fielding cold calls to the newsroom, he covers crime, general interest and political news in addition to reporting longer, sometimes investigative features. He won’t be happy until everyone is as pissed off as he is about how screwed up Lawn Guyland is.