The Entellium story has generated plenty of buzz in the Seattle technology community in the past 24 hours following the arrests of executives Paul Johnston and Parrish Jones on charges of wire fraud.

People have been left wondering how the alleged fraud could go on so long without the board, employees or others knowing anything about it. Here's some of the reaction I've gathered over the past day. More to come.

Barry Abraham, former director of sales operations at Entellium and its first U.S. employee: "It was like a snowball... The board never followed their fiduciary responsibility and now we are stuck holding a bag of crap. The responsibility was to dig deeper. That is why you sit on the ... board."

Bill Bryant, venture partner at Draper Fisher Jurvetson: "It is a black mark for Ignition. It would be a black mark for any venture fund, but they will recover from it... It is not the board's responsibility to review the deposits at the bank and check the ledgers. That would be inappropriate ... If management is going to cook the books, they can do it... Entellium should have at least had a review, but that may not have caught the fraud. Enron and Worldcom had full audits and people still didn't catch on to what was going on for a number of years."

Dave Scott, former senior vice president of sales and marketing at Entellium: “Parrish and PJ kept the financials very close to their chest. We thought they were just being cautious. The management team trusted that the numbers were accurate. I’ve spoken to a number of Entellium’s past employees and we’re all absolutely shocked by the news. Obviously, I nor anyone else knew that this was going on. Our hearts go out to PJ and Parrish’s families. ”

Dan Barr, Entellium investor: "I was an early investor in Entellium and met PJ once or twice. Over the (years) it has always bothered me that there were so few shareholder updates in fact in the last few (years) there were none, there was always the promise of one and I emailed PJ many time regarding that. However being a private company I am aware of no other recourse to take to get information. To a large degree I was relying on the media articles and with all the awards for their product I felt absolutely certain they were legitimate, and especially once Ignition became involved I was certain that any concerns I had would be more than cared for by someone investing such large amounts of money. How this got past a firm that has some of America's who's who of business execs running it is beyond me. I agree that there had to be more people aware of this than just PJ and Parrish..."