United States District Court Judge Thomas J. Whelan sentenced Stephen Parker Gardner, former CEO of Peregrine Systems, Inc., today in San Diego to 97 months in prison. Gardner was convicted on charges of conspiracy, securities fraud, and obstruction of justice related to an alleged scheme to manipulate Peregrine’s revenue and earnings figures.
According to an article in the Imperial News, Gardner participated in a scheme that involved
(1) improperly keeping Peregrine’s books “open” past the end of the fiscal quarter and deceptively including in the prior fiscal period backdated contracts that had actually closed in later periods; (2) improperly recording revenue on contracts that were subject to oral and written side agreements and promises; and (3) concealing from Wall Street the fact that Peregrine counted revenue on “barter deals” – that is, sales that were dependent on Peregrine’s providing the purchaser with cash, equity, or orders for products or services.
The court further ordered Gardner to forfeit to the United States the proceeds from the sale of three parcels of real estate in Maine, approximately $970,032 from the sale of a fourth parcel of real estate, plus approximately $384,652 seized from his brokerage accounts.
Gardner also allegedly gave false and misleading testimony to the SEC about a series of barter deals booked by Peregrine.