Saturday, December 13, 2008

Former Peregrine CEO Sentenced To 97 Months For Financial Statement Fraud

Stephen Parker Gardner, 54, the former CEO of Peregrine Systems, Inc., was sentenced Friday to serve 97 months in federal prison for his role in perpetuated a financial statement fraud at the company between 1999 and 2002. Gardner pleaded guilty in March 2007 and cooperated with authorities in their case against his co-defendants. According to prosecutors, Gardner and his co-conspirators concealed from investors the fact that millions in accounts receivables had not been collected. Gardner also provided false testimony to the SEC about certain barter transactions, according to authorities. Gardner plead guilty to one count each of conspiracy, securities fraud and obstruction of justice. Prior to the company's stock collapse in 2002, Gardner earned in excess of $9 million in options transactions and bonuses. Shareholders claims losses at $3 billion. The company filed for bankruptcy and Gardner was forced to resign at that time. Other Peregrine officers prosecuted in this case include: Gary L. Lenz, former COO; Douglas S. Powanda, former EVP of Sales; Berdj J. Rassam, former controller; Joseph G. Reichner, former SVP for Alliances and Business Development; and Peter J. O'Brien, former director of Strategic Alliances.

Read the story here, here, here and here.

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