Techstartup RIP 10.10.08: Entellium
Source: http://openwebdeveloper.sys-con.com/node/705650
Entellium Duo Charged with Cooking Books, Ripping Off VCsSeems they kept two sets of books: one that they allegedly used to con about $50 million from investors like Ignition Partners and Sigma Partners and the real ones that weren't anywhere near as bonnie.
According to the FBI and the U.S. Attorney's Office, a set of books marked "board books" was discovered a couple of weeks ago by the company's HR VP when she was cleaning out the desk of the start-up's former VP of sales. They wound up with the company's controller, then the board and its legal counsel, who blew the whistle and called the cops.
The fake books show that the board was told the company had revenues of $4 million in 2006 when they were in fact $582,789; that the revenues last year were $6.7 million when they were really $1.4 million; and that they were $5.2 million this year when they were only $1.7 million, according to the U.S Attorney."
