Roundup: Spam bounces back, angel investors balk, Entellium bigwigs go to jail and more
Bebo caught in Irish conflict — The video sharing site has become an unexpected platform for both Irish Catholics and Protestants to hurl insults and violent threats at each other. The BBC has the story.
Downturn puts drag on angels — The Center for Venture Research reports that angel investors put less money into each of their startups in 2008 than in years previous, noting a drop of 26 percent from 2007.
Encarta buckles under Wikipedia’s weight — Microsoft will… Continue Reading
Entellium chief executive pleads guilty to fraud
Paul Johnston, former chief executive of management software provider Entellium, has pled guilty to wire fraud. He is expected to serve three to six years in prison for egregiously fabricating the company’s earning figures to lure more venture capital.
Seattle-based Entellium officially filed for bankruptcy earlier this month and is in the middle of selling its assets to Intuit for a reported $7.66 million.
Johnston resigned from the company at the end of September, along with former… Continue Reading
Roundup: Dow drops 680 points, Palm revenues crater, Trutap shutting
Here’s the latest action:
The Dow drops 680 points: The U.S. stock market tanked on Monday as concerns mounted about the global economic crisis. The Dow closed at 8149.09, down 7.7 percent. With oil down below $50 a barrel and markets worldwide suffering the jitters, investors are running out of places to run. The Wall Street Journal has more.
Palm’s revenues crater: The maker of Treo smart phones reports that its revenues will be $190 million to $195 million,… Continue Reading
Due diligence, recession style
[Editor's Note: One little-discussed byproduct of the economic downturn may be a bump in cases of corporate corruption and financial fraud. Not because companies are under more pressure to hit their targets, but rather because VCs -- jolted awake by losses -- are suddenly aware of situations they overlooked during fatter times. Below, Silicon Valley investigator Justin Hibbard explains how due diligence on all sides of funding deals can help prevent sticky situations going forward.]
When… Continue Reading
Entellium execs fudge the numbers, face fraud charges
Two top executives at management software provider Entellium Corp. were arrested Tuesday for allegedly exaggerating the company’s revenue in order to attract more private funding.
We’re not talking about a little white lie. Former chief executive Paul Johnston and former chief financial officer Parris Jones are accused of cooking the books to show 400 percent more revenue than was actually brought in over the last three years. In 2006, they reported $3.95 million in revenue, when… Continue Reading