Seattle Based Entellium Corp. Filing for Chapter 11 Bankruptcy
Posted on Dec 2, 2008 11:24am PST
News sources are reporting that Entellium Corp., a well known computer company, is planning to file for
Chapter 11 Bankruptcy protection. The news is very unsettling especially since just two months ago, two top executives at the company were arrested and charged with wire fraud and lying to investigators.
On October 8, 2008, Paul Thomas (former CEO of Entellium) and Parrish L. Jones (former CFO of Entellium) were arrested for white collar crimes. The FBI claims that the two executives "devised a scheme to defraud investors in the company by representing that company revenues far exceeded the actual figures."
Reports indicate theta the Seattle based company is claiming $37.7 million in assets and liabilities of up to $12.7 million. They plan to file for bankruptcy in the U.S. Bankruptcy Court for the Western District of Washington.
Several creditors have listed themselves as holding claims against Entellium in the Chapter 11 filing. These companies include Ignition Managing Directors Fund II of Bellvue, which claims that it has $3.5 million claim against Entellium. The company also claims that it invested $19 million into the computer company in October. Two Ignition partners told government investigators that they would have never made such an investment into Entellium Corp. if they had access to the actual, true revenue figures.
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