The company’s ex-VP of sales is said to have carried out a series of fraudulent transactions where software was parked with Peregrine resellers. The move is claimed to have generated $20m worth of bogus revenue that helped the company meet fiscal targets between December 1999 and March 2001.
In March, Peregrine wiped out $509m of revenue for its 2001 and 2000 fiscal years when it filed restated financial results. The company’s total revenue for the period was originally reported as $1.34bn.
The software company, which has undergone major reorganization as part of Chapter 11 proceedings, detailed a series of accounting irregularities during the period ranging from the timing of transactions to reciprocal transactions to underestimating the total cost of acquisitions.
Steven Spitzer, who is said to have made $5.2m selling Peregrine stock, has pleaded guilty to a charge that carries a maximum of five years in prison. Peregrine’s former CFO, Matthew Gless, also faces up to 15 years in prison.
Source: Computerwire
