Ex-Entellium CFO Parrish Jones pleads guilty, faces 33 to 41 months in prison |
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Ex-Entellium CFO Parrish Jones pleads guilty, faces 33 to 41 months in prison
Former Entellium Chief Financial Officer Parrish Jones today pleaded guilty to one count of wire fraud in U.S. District Court in Seattle, a plea agreement that could land him in prison for two years and seven months to three years and five months.
"The judge could go lower or he could go higher," said Emily Langlie, a spokeswoman for the U.S. Attorney's Office. He faces a maximum of 20 years in jail.
Jones and former Entellium Chief Executive Paul Johnston were charged with inflating revenue at the Seattle maker of customer relationship management software.
Jones and Johnston kept one set of books that they showed the board, which tabulated false revenue of $15.4 million from 2006 to 2008. In fact, federal prosecutors allege that actual revenues stood at $3.7 million for that period.
Johnston (who pleaded guilty last week) is facing between four to five years in prison, though his prison sentence also could be altered at the sentencing hearing. Both Jones and Johnston are set to be sentenced March 13.
Entellium raised more than $50 million from Ignition Partners, Sigma Partners and others before the company hit the wall in early October after the fraud came to light.
UPDATE: Colette Tvedt, an attorney for Jones, declined to comment and said her client would not be made available to the media at this time. She said they plan to make a statement at the sentencing in March.
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John Cook is co-founder and executive editor of TechFlash. He has been covering the technology beat for nearly a decade, writing about startups, entrepreneurs and venture capital, most recently serving as a reporter/blogger at the Seattle Post-Intelligencer.
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