Entellium’s former CEO, Paul Thomas Johnston, and former CFO Parrish L. Jones, have been arrested and charged with wire fraud, according to this story in the Associated Press. The fraud was uncovered late last month when an employee found evidence that Entellium, a Seattle software company, inflated its revenues to attract investors, according to the U.S. Attorney’s Office. Both Johnson and Jones were scheduled to make appearances in U.S. District Court this afternoon, the AP said. Venture capital reporter John Cook notes on a blog that Seattle-based Ignition Partners, Sigma Partners (which has offices in Boston and California), and others invested $50 million in the company.
Author: Luke Timmerman
Luke is an award-winning journalist specializing in life sciences. He has served as national biotechnology editor for Xconomy and national biotechnology reporter for Bloomberg News. Luke got started covering life sciences at The Seattle Times, where he was the lead reporter on an investigation of doctors who leaked confidential information about clinical trials to investors. The story won the Scripps Howard National Journalism Award and several other national prizes. Luke holds a bachelor’s degree in journalism from the University of Wisconsin-Madison, and during the 2005-2006 academic year, he was a Knight Science Journalism Fellow at MIT.
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