Here’s the full text of Entellium Chief Executive Paul Johnston’s resignation message, which he sent to Jonathan Roberts of Ignition Partners and Pete Solvik of Sigma Partners. This message was disclosed today in a complaint alleging wire fraud against Johnston and former Chief Financial Officer Parrish Jones.
From: Paul Johnston [mailto:firstname.lastname@example.org]
Sent: Tuesday, September 30, 2008 11:08 AM Pacific Standard Time
To: Pete Solvik; Jonathan D. Roberts
Jonathan and Pete
This is a very difficult email to write but effective immediately both Parrish and I are tendering our resignation.
We have both made a grave mistake to misrepresenting our revenue reporting to the board. Looking back at the time we thought we would be able to right the wrong and correct our representation, but we have not been able to do this. Revenues have been overstated since 2004 with a delta of approximately $400k a month. All other representations are accurate and no one else in the company was aware of this.
Clearly this is devastating news and something we are both regret and are deeply sorry for. Our families are not aware of this and we are telling them now. Clearly this is going to be a very difficult period all around for everyone.
My recommendation is that payroll is funded and that you work with the management team in place to conduct a transition and continue to build the business. We will do what we can to ensure a level of continuity.
Parrish and I will work through the process to ensure that all investors can continue to protect downside and right the ship. As I said, all other representations are accurate and the business has traction.
For the next 24 hours we need to discuss the consequences of our actions with family members and ensure we do what we can to make the best of a terrible situation for everyone concerned.
Deeply shamed and sorry.