The former chief executive officer and former chief financial officer at Seattle-based Entellium will be sentenced today in federal court at 2 p.m. Paul Johnston and Parrish Jones -- who were accused of cooking the books at the company -- pled guilty in December to wire fraud.
Johnston is looking at four to five years. Jones is facing a possible prison sentence for two years and seven months to three years and five months, though it is up to the discretion of the judge in both sentencings.
Philip Kim, who lost his job at the heavily-funded company in early October, said he hopes they receive the maximum sentence.
"I feel like justice is being done. I hope they get the maximum sentence because they displaced so many people and the consequences of their actions still have a ripple effect on many," said the 26-year-old. "I do feel sorry for their families but they should have thought about their actions and who it would affect. This has been a long day coming for ex-employees and I am sure most will feel that some justice has been done."
Jones and Johnston kept one set of books that they showed the board, which tabulated false revenue of $15.4 million from 2006 to 2008. In fact, federal prosecutors allege that actual revenues stood at $3.7 million for that period. Entellium raised more than $50 million from Ignition Partners, Sigma Partners and others before the company hit the wall in early October after the fraud came to light.
[I will be at the court house covering the events, so check back here for more details throughout the day. Let me know if there is anything you want me to ask the attorneys or pursue.]
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