Xconomy | Seattle - Business + Technology in the Exponential Economy

Ex-Entellium Execs Charged With Fraud By Feds

Entellium’s former CEO, Paul Thomas Johnston, and former CFO Parrish L. Jones, have been arrested and charged with wire fraud, according to this story in the Associated Press. The fraud was uncovered late last month when an employee found evidence that Entellium, a Seattle software company, inflated its revenues to attract investors, according to the U.S. Attorney’s Office. Both Johnson and Jones were scheduled to make appearances in U.S. District Court this afternoon, the AP said. Venture capital reporter John Cook notes on a blog that Seattle-based Ignition Partners, Sigma Partners (which has offices in Boston and California), and others invested $50 million in the company.

Luke Timmerman is the National Biotechnology Editor for Xconomy. You can e-mail him at ltimmerman@xconomy.com, call 206-624-2374, or follow him on Twitter at http://twitter.com/ldtimmerman.

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greenberg
10/8/08 3:13 pm

Wow. So Entellium is a big lier with all the fancy numbers and growth…i doubt they will keep the business running. Clearly Entellium customers should be thinking about leaving to new more reliable vendors such as Salesboom.com or Netsuite.