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About a year after Peregrine Systems Inc. first disclosed accounting irregularities, former CFO Matthew Gless pleaded guilty to two federal felony counts in connection with a orchestrated conspiracy to artificially enhance the San Diego software firm's revenues and earnings.
Gless, 37, who entered the guilty plea before U.S. District Court Judge Thomas Whelan April 16, faces a maximum prison sentence of 15 years and a fine of $500,000, but his sentencing was postponed until federal authorities continue their investigation into the case.
Last May, Gless and former Chairman and CEO Steve Gardner resigned from their positions after the firm revealed accounting irregularities that could result in possible reductions to revenues by $100 million. Later the figure was adjusted to as much as $250 million.
When Peregrine finally released its restated financial results for nearly three fiscal years from 1999 to 2001, the amount of inflated sales was more than $500 million, and its total...