Former KPMG Consultant Pleads in Conspiracy Case
In a case of aiding and abetting a corporate fraud, former KPMG consultant Larry Alan Rodda pleaded guilty to federal fraud charges Tuesday, admitting he signed phony contracts with Peregrine Systems intended to boost Peregrine's earnings, the San Diego Union-Tribute reported.
The contracts, worth $25 million, were part of an elaborate accounting fraud that was uncovered in 2002. Eleven people were indicted last month and Rodda, 54, is the sixth person to plead guilty on federal charges, the Union-Tribune reported.
His attorney, Craig C. Allison, did not return calls from the Union-Tribune. When sentenced, Rodda faces a prison term of 41 to 51 months and a maximum fine of $250,000. He has agreed to cooperate with the government.
According to the indictment, eight former Peregrine executives and three others close to the company conspired to falsely inflate the company's financial results. The company develops software.
Rodda acknowledged to U.S. Magistrate James F. Stiven that he signed the bogus contracts knowing that Peregrine executives would fraudulently report the transactions as authentic sales. At the time he was a principal with KPMG's consulting division, now known as BearingPoint, and worked with Peregrine as a software sales partner, the Union-Tribune reported.
"The corporate outsiders who knowingly aided and abetted the massive fraud at Peregrine share the criminal responsibility for that fraud," said U.S. Attorney Carol C. Lam. "This plea demonstrates that they will be held to account for their criminal actions."
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.