NEW YORK (Reuters) - Federal prosecutors have opened a preliminary inquiry into whether Computer Associates International Inc. (CA.N) deliberately overstated its profits to inflate its stock price and enrich its senior executives, the New York Times reported on Wednesday.

Since October 2000, the Islandia, N.Y.-based software company has reported its financial results using a nonstandard "pro forma" accounting practice that makes its profits and sales seem much larger than under standard accounting rules, the Times said.

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Tech issues suffered deep losses as investors continued to dump shares of IBM and Nvidia Corp. over their accounting woes. And a downgrade of Sun Microsystems (NasdaqNM: SUNW - news) by SoundView Technology added to the market's grim tone.

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NORTHVILLE, Mich., Feb 19 (Reuters) - Automotive wheel and parts maker Hayes Lemmerz International Inc. (NYSE:HAZ - news) said Tuesday it restated financial results for its 1999 and 2000 fiscal years and the first quarter of fiscal 2001, reducing net income by $218.0 million.

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-- Anonymous, February 20, 2002