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At the heart of the felony admitted by a former Peregrine Systems assistant treasurer is the troubled San Diego software company's strategy of keeping the time period when it received payment for its software below a certain number of days.
According to the plea agreement by Ilse Cappel, a former assistant treasurer for Peregrine Systems, the company was intent on maintaining its revenues growth while it kept its DSO, or days sales outstanding, to a low number.
Knowing that DSO number was rising, Cappel turned to selling Peregrine's accounts receivables to a bank with the knowledge those accounts were invalid, according to Cappel's plea agreement with federal prosecutors.
Cappel, who resigned from Peregrine in June, is facing a maximum five years in prison and $250,000 for bank fraud. Neither the U.S. Attorney's Office nor Peregrine Systems would comment on the action, but legal documents describe the fraud and why it...