Feeds

Peregrine execs charged by FBI

'Multi-billion dollar securities fraud'

  • alert
  • submit to reddit

New hybrid storage solutions

Eight former executives of Peregrine Software have been charged with conspiracy to commit fraud. An external Arthur Andersen auditor and two business partners of Peregrine face the same charges.

The eleven are accused of manipulating accounts between March 1999 and May 2002 and deceiving the public and investors about the true state of the company. They are accused of: “improperly booking software license revenue on backdated, impaired or sham transactions...fraudulently deceiving financial institutions into extending credit based on false financials [and] concealing Peregrine's mountain of uncollectible accounts”.

Attorney General John Ashcroft said: “The indictment charges these defendants with a massive conspiracy that had at its core one corrupt goal: to hit the numbers quarter after quarter, no matter what. The betrayal of the public trust alleged in this indictment extended from the Chief Executive Officer who headed the scheme to the independent auditor who knowingly certified the company's false financial statements and allegedly made the continuing fraud possible.”

Three former Peregrine executives have already pleaded guilty.

Between its IPO in 1997 and March 2000 Peregrine shares rose from $2.25 to $79.50. Its subsequent collapse saw the loss of $4bn of equity value.

The FBI thanked the Securities and Exchange Commission for its co-operation. The SEC is conducting a parallel civil action against Peregrine. The FBI press release is here. ®

Related stories

Peregrine ready to emerge from Chapter 11
Scandal-hit Peregrine appoints new CFO and auditors
Peregrine top two quit after $100m hole uncovered

Providing a secure and efficient Helpdesk

More from The Register

next story
Quit drooling, fanbois - haven't you SEEN what the iPhone 6 costs?
How keen will buyers be when exposed to the real price?
Ex-Autonomy execs: HP's latest wad blows apart fraud allegations
Top bods claim IT titan's latest court filing is smoking gun of 'reckless aggression'
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Elon Musk says Tesla's stock price is too high ... welp, NOT ANY MORE
As Nevada throws the SpaceX supremo a $1.25bn bone
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.