SAN DIEGO, Dec. 18 (UPI) -- Two ex-officers of former software firm Peregrine Systems Inc. have received federal prison sentences and await orders of restitution, a U.S. attorney said.
Matthew Gless, 43, Peregrine's former chief financial officer, was sentenced Wednesday to 5 1/4 years and Douglas Powanda, 52, one-time vice president of worldwide sales, received 6 1/2 years, U.S. Attorney Karen Hewitt said.
Both were convicted of conspiracy and securities fraud following an accounting scandal and bankruptcy.
Former Peregrine Chief Executive Officer Stephen Gardner was sentenced Friday to eight years and one month for his role in the massive fraud, the San Diego Union-Tribune reported.
The three are among 18 former Peregrine executives who prosecutors accuse of falsifying sales, exaggerating revenue, concealing debts and then covering up the scheme by hiding losses as "goodwill costs relating to acquisitions."
As with the Enron Corp. scandal, the fraud eventually led to many outside investors and Peregrine employees, who invested their earnings in Peregrine's internal stock plan, losing thousands of dollars, documents show.
U.S. District Judge Thomas Whelan, who sentenced Gless and Powanda, set a restitution hearing for both men for Feb. 23, 2009.
Peregrine filed for Chapter 11 protection in 2002 after laying off most of its employees. Hewlett Packard Co. bought the company and made it part of its Software Global Business Unit in 2005.
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