Gless, Powanda Sentenced for Roles in Peregrine Systems Fraud

Matthew Gless, former chief financial officer of Peregrine Systems, was sentenced today (Dec. 17) to 63 months in custody for his role in the massive fraud. Former international sales director Douglas S. Powanda was sentenced to 78 months. Gless and his wife had worked at BMC Software, which was founded by John Moores, former chairman. When Gless joined Peregrine in 1996, his wife worked at JMI Services, controlled by Moores. Gless was always close to Moores. A lawyer representing a defendant in one of the Peregrine criminal cases reported that Gless admitted that a study by Latham & Watkins, spearheaded by Moores's then-personal attorney Charles La Bella, "was designed to cover for the board of directors." Both Gless and Powanda admitted to being involved in such crimes as recording sales long after a quarter ended to pump up earnings for Wall Street. Powanda would joke about the practice. He dumped $25 million of his Peregrine stock during the fraud period (nothing next to Moores's jettisoning of $487 million during that period) and sold his Rancho Santa Fe house for $2.5 million to former Congressman Randy (Duke) Cunningham, now spending time in the kind of institution to which Powanda and Gless are headed.


But still there is no talk of prosecuting John Moores; these dupes go to jail and he walks free, sells his ballclub, and continues to hobnob with the politically well-connected movers in the state. Priceless!

Response to post #1: Tragically, that is how the system works. The SEC, for example, only goes after big fish when publicity forces it to do so -- Madoff is a case in point. The agency looked the other way until the case blew up. Worldcom and Enron are other examples. The same is true with the Justice Department -- certainly, it has been glaringly true under Bush. The major law firms run the big government agencies -- holding out the possibility of fat jobs for bureaucrats -- and the major law firms rake in their biggest fees representing big-time crooks. Sorry to be so blunt about the truth. Best, Don Bauder

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