10:55 p.m., Aug. 31
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.