Veritas Software Corp.s chief financial officer resigned today because he lied about having a masters degree in business administration from Stanford University, officials said.
"I regret this misstatement of my educational background. Under the circumstances, I believe my resignation is in the best interests of both the company and myself," Ken Lonchar, the outgoing CFO of the Mountain View, Calif., company, said in a statement released today.
Gary Bloom, the companys chairman, president and CEO, said in the statement that the news has no effect on Veritas historical financial results or procedures.
Numerous financial firms changed their recommendations of Veritas stock from buy to hold or to neutral today as a result of the news. The stock price, as of 2 p.m., had fallen more than 17 percent from Wednesdays $14.50 closing price.
Veritas officials were not available for comment.
"It appears that the guy was not out to cause damage, he was just out to gain position for himself," said analyst Nitsan Hargil, of Friedman, Billings, Ramsey Group Inc. "He was a very good CFO. He was one of the better CFOs that Ive known." No background check was done because Lonchar joined when Veritas acquired his prior employer, OpenVision Technologies, in April 1997, he said.
"The guy was working for several million a year," Hargil added.