Federal Contractor Misconduct Database (FCMD)
Aiding and Abetting Financial Fraud
BearingPoint was named as a defendant in several civil lawsuits regarding certain software resale transactions with Peregrine Systems, Inc. from 1999 to 2001. Peregrine overstated its revenue by $509 million during that period, when BearingPoint was a reseller of Peregrine’s software. A former BearingPoint employee pled guilty in 2004 to signing phony contracts for Peregrine. Purchasers of Peregrine stock alleged BearingPoint participated in or aided and abetted a fraudulent scheme by Peregrine to inflate its stock price. In September 2006, BearingPoint settled the lawsuits for approximately $36.9 million. See related BearingPoint instances, “Criminal Conspiracy” and “SEC v. Gardner, et al. (Aiding and Abetting Financial Fraud)."
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement (approx.)