Former Peregrine CFO Pleads Guilty to Fraud

The former chief financial officer of San Diego-based software firm Peregrine Systems Inc. on Wednesday pleaded guilty to conspiracy and securities fraud.

Matthew Gless is the second former Peregrine executive to admit to wrongdoing as part of a federal probe into the company’s accounting practices. Gless pleaded guilty to one count of conspiracy and one count of securities fraud, the U.S. attorney’s office for the Southern District of California said.

Also on Wednesday, the Securities and Exchange Commission said it filed civil fraud charges against Gless for his participation in a financial fraud that regulators allege continued for almost three years.

“Matt has, in the context of his plea, acknowledged certain mistakes he’s made. He has indicated he’s prepared to accept the consequences of his mistakes,” said Michael Perlis, Gless’ attorney in the civil case.

Peregrine, which sells software to help companies track their physical assets, admitted in May 2002 to massive accounting irregularities.

Prosecutors said Gless admitted that he and others met at the end of most quarters to decide how much revenue Peregrine needed to show to meet or exceed securities analysts’ earnings expectations. They then created false or misleading transactions to ensure that the needed revenue was booked.