Entellium

Entellium's products include two customer relationship management applications and an issue tracking system:

Rave, a smart client CRM application built on the Windows Presentation Foundation

eSalesForce, a web-based CRM application built on the ASP.NET Framework

eCustomerCenter, a web-based issue tracking system

Wire fraud scandal

On October 7, 2008, Paul Thomas Johnston, the former chief executive officer (CEO) of Seattle-based Entellium Corp., and Parrish L. Jones, the former chief financial officer (CFO), were arrested and charged with wire fraud for lying to investors in U.S. District Court in Seattle.

According to the FBI, the two software executives “devised a scheme to defraud investors in the company by representing that company revenues far exceeded the actual figures.”

The government alleges that actual 2006 revenues were $582,789 but the pair inflated the revenues to nearly $4 million; actual 2007 revenues were $1.4 million inflated to $6.2 million; and actual 2008 revenues were $1.7 million inflated to $5.2 million.

The false revenue numbers, according to the government, were used by the pair to attract millions of dollars in private investment, including $19 million from Ignition Partners, of Bellevue. Two Ignition partners told government investigators that they never would have made such an investment had they known the actual revenue figures.

Forty Entellium staff were laid off after the arrests.