SEATTLE — Two former Seattle software executives have been arrested and charged with wire fraud. Prosecutors say they falsely inflated the company’s revenue to attract venture capital.
Paul Thomas Johnston, the former chief executive of Entellium Corp., and Parrish L. Jones, its former chief financial officer, were scheduled to make initial appearances in U.S. District Court this afternoon.
The U.S. Attorney’s Office says the fraud was uncovered late last month when a human resources worker was cleaning out a desk and found evidence that in the past three years, Entellium dramatically overstated its revenue to attract $50 million in private investment.
Entellium’s legal counsel brought the matter to the attention of prosecutors. Entellium makes Web-based programs that help companies track sales and customer information.
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