Peregrine Trial Blog

  1. Peregrine Criminal Trial Sentences

    Comments by Bob Grimes and Dana Grimes   Stephen Gardner, former CEO of Peregrine Systems who was sentenced to 97 months in the custody of Federal Bureau of Prisons, died on July 17, 2013.  He is survived by his wife, Dorothy Flavin Gardner, his sons, Brendan T. Gardner, and Christopher P Gardner, and his granddaughter, || Continue reading…

  2. Peregrine Trial – Week 31

    Comments by Bob Grimes and Dana Grimes March 30, 2009 Assessing guilt and innocence can be difficult in a white collar case; it’s not like a bank robbery. When someone is doing business with others who are engaged in a fraud, and may or may not have some knowledge of some fraudulent conduct, it can || Continue reading…

  3. Peregrine Trial – Week 30

    Comments by Bob Grimes and Dana Grimes March 13, 2009 – 8:45 a.m. to 1:30 p.m. Government Closing Argument Just after 9:00 a.m., AUSA Bill Narus began his closing argument for the Government. His argument went over the highlights of the Government’s case, and lasted just over an hour. The courtroom was so full that || Continue reading…

  4. Peregrine Trial – Week 29

    Comments by Bob Grimes and Dana Grimes March 6, 2009 – 9:00 a.m. to 1:00 p.m. John Benjamin AUSA Narus resumed his direct examination of John Benjamin this morning. Throughout his testimony, Benjamin was composed and forthright. A number of jurors took notes while he testified, and they appeared to find him credible. (The jury || Continue reading…

  5. Peregrine Trial – Week 28

    Comments by Bob Grimes and Dana Grimes February 21, 2009 A new surrender date was ordered for Stephen Gardner – he must report to the Bureau of Prisons by noon on April 6, 2009, to begin serving his 97 month sentence. This new date was selected to make him more readily available to testify against || Continue reading…

  6. Peregrine Trial – Week 27

    Comments by Bob Grimes and Dana Grimes December 30, 2008 – 9:20 a.m. to 9:50 a.m. BJ Rassam was sentenced today to 24 months in the custody of the Bureau of Prisons. The recommendation from the Federal Probation Department was 120 months (they do not take cooperation into consideration), and the recommendation of the Government || Continue reading…

  7. Peregrine Trial – Week 26

    Comments by Bob Grimes and Dana Grimes March 18, 2008 – 9:00 a.m. to 3:30 p.m. The jury deliberated today without reaching a verdict. This may be an indication of a division of opinion amongst the jurors, if initial balloting has not yet resulted in unanimity. However, it is possible that the jurors have not || Continue reading…

  8. Peregrine Trial – Week 25

    Comments by Bob Grimes and Dana Grimes March 11, 2008 – 9:00 a.m. to 3:20 p.m. After nineteen days of testimony, closing arguments began today. One juror was excused due to illness, and an alternate was seated in her place. The replacement juror was the only one taking notes throughout argument today. The juror who || Continue reading…

  9. Peregrine Trial – Week 24

    Comments by Bob Grimes and Dana Grimes March 4, 2008 – 9:45 a.m. to 3:45 p.m. Today was the eighteenth day of the retrial. Judge Whelan heard oral argument this morning regarding Defendant Gardner’s attempt to invoke his Fifth Amendment privilege to remain silent, and the Government’s support of his invocation. Although it was the || Continue reading…

  10. Peregrine Trial – Week 23

    Comments by Bob Grimes and Dana Grimes February 26, 2008 – 9:30 a.m. to 3:00 p.m. At the start of this fourteenth court day of the retrial, the attorneys discussed several issues outside the presence of the jury. AUSA Beste indicated that he was planning to ask Witness Kevin Ortzman questions pertaining to the Peregrine || Continue reading…

  11. Peregrine Trial – Week 22

    Comments by Bob Grimes and Dana Grimes February 19, 2008 – 2:15 p.m. to 3:20 p.m. MOTION HEARING – DELLER, CROOK, AND NELSON Although the retrial of Stulac and Towle was not in session, Judge Whelan heard oral argument today on various motions filed by counsel for defendants Jeremy Crook, Richard Nelson, and Eric Deller. || Continue reading…

  12. Peregrine Trial – Week 21

    Comments by Bob Grimes and Dana Grimes February 12, 2008 – 9:30 a.m. to 3:35 p.m. This morning, outside of the jury’s presence, Attorney Mike Attanasio moved to preclude Nevanna Sacks from testifying regarding statements allegedly made by Stulac to Arthur Andersen counsel. The government argued that Ms. Sacks’ testimony would not be cumulative of || Continue reading…

  13. Peregrine Trial – Week 20

    Comments by Bob Grimes and Dana Grimes February 5, 2008 – 10:00 a.m. to 3:30 p.m. Testimony resumed this morning after motions were ruled upon outside of the jury’s presence. As it turns out, the next government witness, Bob Austrian, is an economist. He was a securities analyst who researched Peregrine stock for his clients. || Continue reading…

  14. Peregrine Trial – End of January to February 1st

    Comments by Bob Grimes and Dana Grimes January 23, 2008 Having previously pled guilty to Conspiracy to Commit Securities Fraud and Wire Fraud, Larry Rodda was sentenced today. Mr. Rodda’s family was present in the courtroom. Attorney Craig Allison appeared on his behalf, and AUSA Eric Beste appeared on behalf of the Office of the || Continue reading…

  15. Peregrine Trial – January

    Comments by Bob Grimes and Dana Grimes January 8, 2008 GOVERNMENT WITNESS LIST FOR HEARING ON JANUARY 14, 2008, REGARDING BLOG-READING WITNESSES The defense has argued that any witness who has read this blog unknowingly violated the Court’s sequestration order which prohibited witnesses, other than the Government’s case agents and defendant’s families, from being present || Continue reading…

  16. Peregrine Trial – August to November

    Comments by Bob Grimes August 23, 2007 It is still not certain whether the Government will retry Defendants Lenz, Reichner, Towle and Stulac. The jury deadlocked on July 27, 2007, after three months of trial and two weeks of deliberations. The case is now in the somewhat unusual posture of the defendants stating that they || Continue reading…

  17. Peregrine Trial – Week 16

    Comments by Bob Grimes July 23, 2007 Today the jury deliberated from 8:30 a.m. to 1:30 p.m. They sent Judge Whelan a note requesting further explanation of the numbering system of the exhibits. The volume of e-mails, contracts, and other documentary exhibits in this case is overwhelming, and the jury apparently is still trying to || Continue reading…

  18. Peregrine Trial – Week 15

    Comments by Bob Grimes July 17, 2007 The jury is deliberating. They asked for an overhead projector, so that they can view any of the 1,300 exhibits. Some of the jurors took notes during the testimony and also during the final arguments, and there are some exhibits that are likely to be particularly important to || Continue reading…

  19. Peregrine Trial – Week 14

    Comments by Bob Grimes July 10, 2007 – 8:30 a.m. to 3:15 p.m. CLOSING ARGUMENT BY TOM BIENERT In his closing argument on behalf of Gary Lenz, Attorney Tom Bienert asked the jury to use their common sense when evaluating the charges against Gary Lenz. Bienert told the jury to follow the money, and to || Continue reading…

  20. Peregrine Trial – Week 13

    Comments by Bob Grimes July 5, 2007 – 8:30 a.m. to 3:00 p.m. GOVERNMENT’S CLOSING ARGUMENT AUSA Eric Beste gave a closing statement that focused on Gary Lenz and Joseph Reichner. Beste argued that Lenz and Reichner were part of senior management and therefore had to know about the sham deals, partner paper and barter || Continue reading…

  21. Peregrine Trial – Week 12

    Comments by Bob Grimes June 26, 2007 – 8:30 a.m. to 3:15 p.m. WITNESS BERDJ RASSAM Berdj (BJ) Rassam was hired as the Controller at Peregrine in November 2000, and was promoted to VP of Finance and Chief Accounting Officer in September 2001. BJ Rassam testified about CPA Patrick Towle’s duties as Peregrine’s Revenue Accounting || Continue reading…

  22. Peregrine Trial – Week 11

    Comments by Bob Grimes June 19, 2007 – 8:30 a.m. to 3:30 p.m. This was the seventh full day of testimony by Steve Gardner. At this point, the lawyers are bringing out points (sometimes subtle points) that they feel are necessary to clarify for their individual clients. Gardner appears even more subdued as the case || Continue reading…

  23. Peregrine Trial – Week 10

    Comments by Bob Grimes June 12, 2007 – 8:30 a.m. to 3:15 p.m. WITNESS STEPHEN GARDNER (continued) On direct examination, AUSA Beste asked Gardner questions that emphasized that Peregrine’s problems with getting some transactions to close before the quarter’s end were always discussed at management forecast meetings. Peregrine executives usually in attendance at the forecast || Continue reading…

  24. Peregrine Trial – Week 9

    Comments by Bob Grimes June 5, 2007 – 8:30 a.m. to 3:15 p.m. WITNESS WARREN DAVID ROUDEBUSH (continued) Attorney Thomas Bienert went over the details of Peregrine’s contract with Lee Kirby of Ranier Technology Group (RTG). Witness Roudebush testified that on December 27, 2001 when the contract between Peregrine and Kirby of Denali/RTG was entered || Continue reading…

  25. Peregrine Trial – Week 8

    Comments by Bob Grimes May 30, 2007 – 8:30 a.m. to 3:15 p.m. WITNESS ROSS BALDWIN (continued) Attorney Attanasio asked Mr. Baldwin questions designed to illustrate that auditors depend greatly on company management in the course of their audit. Mr. Baldwin testified that the more people there are in a conspiracy to commit financial fraud, || Continue reading…

  26. Peregrine Trial – Week 7

    Comments by Bob Grimes May 22, 2007 – 8:30 a.m. to 3:15 p.m. WITNESS PETER O’BRIEN (continued) AUSA Bhandari went over Friday’s testimony by witness O’Brien regarding the $250,000 marketing fund incentive that Peregrine gave to KPMG in the Honeywell/Boeing deal. AUSA Bhandari emphasized that nothing on the face of that Honeywell/Boeing contract (with KPMG || Continue reading…

  27. Peregrine Trial – Week 6

    Comments by Bob Grimes May 15, 2007 – 8:30 a.m. to 2:45 p.m. WITNESS PHILLIPP TUROWSKI Phillipp Turowski is a German accountant who was the Peregrine German division audit engagement partner for the 2001 AA audit of Peregrine Germany. AUSA Bhandari asked Mr. Turowski questions about the fact that Peregrine Germany was considered to be || Continue reading…

  28. Peregrine Trial – Week 5

    Comments by Bob Grimes May 8, 2007 – 8:30 a.m. to 3:15 p.m. WITNESS DENISE MASTRO Denise Mastro was the revenue account manager at Peregrine until she was replaced by Patrick Towle. Her second job title at Peregrine was Assistant Controller. Mastro testified on direct examination that while she was the Assistant Controller at Peregrine, || Continue reading…

  29. Peregrine Trial – Week 4

    Comments by Bob Grimes May 1, 2007 – 8:30 a.m. to 3:15 p.m. The new trial schedule will be Tuesday and Wednesday from 8:30 a.m. to 3:15 p.m., Thursday and Friday from 8:30 a.m. to 1:30 p.m. WITNESS STEVEN SPITZER (contined) AUSA Beste continued with the direct examination of Steven Spitzer. Spitzer testified that on || Continue reading…

  30. Peregrine Trial – Week 3

    Comments by Bob Grimes TRIAL April 24, 2007 – 8:30 a.m. to 1:30 p.m. WITNESS DOUGLAS POWANDA (continued) Once again, Attorney Iredale asked Doug Powanda many questions about his written plea agreement in his cross-examination. Mr. Powanda testified that under the Federal Sentencing Guidelines, his prison sentence should be set between 324-405 months (approximately 30 || Continue reading…

  31. Peregrine Trial – Week 2

    Comments by Bob Grimes TRIAL April 17, 2007 – 8:30 a.m. to 1:30 p.m. WITNESS MIMI LE In the continuing cross-examination of Mimi Le, Defense Attorney Iredale pointed out that not all positive press releases resulted in an increase in the value of Peregrine stock. The Government illustrated that one of Le’s charts did show || Continue reading…

  32. Peregrine Criminal Trial

    Comments by Bob Grimes I followed United States of America v. Stephen Gardner, et. al, the federal criminal trial of the former Peregrine employees who had been indicted for criminal activities  alleged to have occurred when they worked at Peregrine. The following is a summary of the four criminal trials in that case, held in front || Continue reading…

  33. Peregrine Trial – Week 1

    Comments by Bob Grimes TRIAL April 10, 2007 – 8:30 a.m. to 1:30 p.m. The attorneys for both sides were given questionnaires that have been filled out by the prospective jurors, to assist in jury selection. The jury panel was screened for a trial which could last three months or more. Judge Whelan allows attorney voir || Continue reading…