Where are John and Todd?

A number of companies are trying to feed off the corporate detritus left by the Entellium mess.
So far this week, I’ve seen two three press releases from companies looking to pick up Entellium’s customers following wire fraud charges last week for the Seattle company’s top two executives.
Here’s how one started from Vancouver, B.C.-based Maximizer Software:
Help [...]

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The jazz band was playing. The sun was setting over Elliott Bay. And the lawyers, accountants, entrepreneurs and venture capitalists all appeared to be having a good time last night as Fenwick & West celebrated the opening of their spectacular new office in downtown Seattle.
But as I made the rounds at the party, two topics [...]

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Former Entellium Corp. CEO Paul Johnston was deemed a flight risk and ordered to remain in detention Friday afternoon after a federal prosecutor revealed new details about his alleged financial misdeeds, saying Johnston used the company as his “personal piggy bank.”
Investigators have not been able to account for about $9.6 million in Entellium funds that [...]

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Former Entellium Chief Executive Paul Johnston is scheduled to appear at a detention hearing in U.S. District Court in Seattle this afternoon on charges of wire fraud. I’ll be attending the hearing, so check back later for all the details.
Meanwhile, Entellium’s Web site has been down most of the day. Representatives of the company were [...]

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PeHub.com today has an interesting read on the Entellium situation, reporting that, in addition to the venture backers, firms such as Cascadia Capital and Silicon Valley Bank appear to have been “snowed.”
The story notes that several of the players involved were “asleep at the wheel” and some steps were missed in the due diligence process, [...]

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In every bad situation, there’s opportunity.
Halifax, Nova Scotia-based Salesboom.com, which like Entellium offers hosted customer relationship management software, is trying to pick off customers of the embattled Seattle software startup. It is calling the effort the “Entellium Rescue Initiative.”
“Salesboom.com’s Entellium Rescue Initiative offers current Entellium customers a safe haven during these rocky times by offering [...]

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The allegations of overstated revenue and financial fraud at Entellium are sparking a debate in the Seattle technology community about board oversight and the role of audits at venture-backed companies.
Now we’ve learned this: Moss Adams, the accounting firm for Entellium, says it never completed a full audit of the Seattle software startup. The information [...]

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The Entellium story has generated plenty of buzz in the Seattle technology community in the past 24 hours following the arrests of executives Paul Johnston and Parrish Jones on charges of wire fraud.
People have been left wondering how the alleged fraud could go on so long without the board, employees or others knowing anything about [...]

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Dressed in prison khakis, two former Entellium Corp. executives made their initial court appearances this afternoon on charges of wire fraud, as prosecutors pressed ahead with an investigation into the Seattle-based company’s finances.
“We haven’t tracked down all the money,” said Carl Blackstone, the assistant U.S. attorney leading the case, outside the Seattle courtroom. “We are [...]

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Venture capital firm Ignition Partners of Bellevue is reacting to the news that two former executives at its portfolio company Entellium Corp. have been arrested and charged with wire fraud. An Ignition spokeswoman provided the following statement this afternoon:
This news is obviously a jolt to Ignition and other investors who invested in Entellium based on [...]

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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:pj@entellium.com]
Sent: Tuesday, September 30, 2008 11:08 [...]

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Two top executives at Entellium have been indicted arrested for wire fraud, a charge that comes less than a week after the Seattle software company hit the wall. Former Chief Executive Paul Johnston and former Chief Financial Officer Parrish Jones — who abruptly resigned last week — could face up to 20 years in prison.
The [...]

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The Chief Executive of Avidian, a 6-year-old maker of customer relationship management software, said his Redmond company would consider purchasing some of the assets of Seattle-based Entellium if they became available at the right price.
“If it makes sense, we are open to it,” said James Wong, the co-founder and CEO of Avidian. Wong has already [...]

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Entellium today laid off its sales and marketing staff, a move that comes just a few days after the Seattle software company’s chief executive and head of finance unexpectedly stepped down.
The 8-year-old company is now evaluating options, with a board meeting set for Oct. 6.
“It has been a long hard day for people and a [...]

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After a series of layoffs, Seattle-based Entellium has now lost its CEO and top finance executive in an unexplained shakeup.
Chief Executive Paul Johnston and Senior Vice President Parrish Jones are no longer with the company. Entellium issued this short statement on the departures:
Entellium’s Chief Executive Officer and its SVP of Finance & Operations have resigned from [...]

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