Peregrine’s former president pleads guilty in fraud case
Former Peregrine Systems Inc. President Gary Lee Lenz, whose fraud trial ended in a deadlocked jury, pleaded guilty Tuesday to making false statements in a case that charged him with helping destroy the once-$4.7-billion company.
Lenz entered the plea before U.S. District Judge Thomas Whelan in San Diego. Lenz, 60, faces as many as five years in prison and a fine of $250,000.
“Mr. Lenz wants to put this behind him,†Lenz’s attorney, Thomas Bienert, said after the hearing. “He has been under tremendous stress and expense for almost three years, and wants to move forward with his life.â€
Prosecutors charged 18 people in the fraud that sent the software maker into bankruptcy. Ex-Chief Executive Stephen P. Gardner and ex-finance chief Matthew Gless previously pleaded guilty.
Whelan allowed Lenz to remain free on $500,000 bail until his April 8 sentencing.
During Tuesday’s hearing, Lenz admitted lying to the FBI in July 2004 when he was questioned during a criminal probe of Peregrine employees. He said he lied about whether contracts were backdated and about quarterly revenue projections. In return, prosecutors dropped multiple conspiracy and fraud charges.
