SEATTLE (AP) - Two former software executives have been sentenced in federal court to prison time for inflating revenue numbers to attract venture capital.
Paul Johnston, chief executive of Entellium and the scheme’s architect, received three years _ splitting the difference between what prosecutors and defense attorneys requested.
Parrish Jones, Entellium’s CFO, got two years.
The two pleaded pleaded guilty in December to fraud charges, admitting they inflated revenue figures to secure more than $50 million from investors, much of it from the well-known local venture capital firm Ignition Partners. Prosecutors noted that even after he was charged, Johnston fraudulently sold some of his stock in the company to 14 other investors for $645,000.
The Seattle company made software to help businesses track sales. It filed in December for Chapter 11 bankruptcy protection.
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