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Cognos reassigns new exec after indictment

Cognos has announced that Andrew Cahill, who was a senior vice-president at the company, has been reassigned to other duties at Cognos after being indicted by the US Department of Justice in connection with activities at his previous employer.
 
Cahill was indicted in connection with activities that led to financial restatements at Peregrine Systems for the period of April 1999 to end of December 2001.

In the interim, Tony Sirianni, Cognos senior vice-president of worldwide operations, will assume Cahill's duties. Cahill joined Cognos in May. He has held leadership positions at IBM, Candle Software and Peregrine, said Cognos.

The DOJ on Wednesday announced that a federal grand jury had handed up an indictment charging eight former executives of Peregrine, one former outside auditor, and two outside business partners of Peregrine with conspiracy to commit a multi-billion dollar securities fraud involving the company's performance.

Additionally, a former Peregrine sales executive pleaded guilty to obstruction of justice, joining several others who agreed to cooperate in the government's ongoing investigation.

The indictment alleges that during its IPO in 1997 through 2002, Peregrine reported 17 consecutive quarters of revenue growth that met or exceeded Wall Street analysts' expectations.

In May 2002, the company announced it was conducting an internal investigation into potential misstatements in its prior reports, and then filed for bankruptcy in September 2002, eventually canceling its common stocks leading to the loss of more than $4bn (£2.2bn) in shareholder equity.

"These indictments stem from historical events that took place nearly two and a half years ago, and none of the individuals indicted are current employees of the company," said John Mutch, who joined Peregrine's board in April 2003 and was appointed as president and CEO in August 2003. "The company has fully cooperated with the government in its investigations and will continue to do so."

Paul Krill writes for InfoWorld


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