Former KPMG chief settles in Peregrine case

The Securities and Exchange Commission (SEC) yesterday filed a settled enforcement action against a Larry Rodda, a former KPMG Consulting principal and managing director, for his role in deceiving investors in a major corporate accounting fraud at the San-Diego, California-based Peregrine Systems.

Without admitting or denying the SEC's allegations, Rodda agreed to be enjoined from breaching the antifraud provisions of the securities exchange legislation in addition to paying the financial penalty for what has been termed the biggest accounting fraud in San Diego. He was charged by SEC in 2004 with aiding and abetting a massive financial fraud orchestrated by senior officers at the Peregrine Systems, software company, later acquired by Hewlett-Packard Company.

Rodda pleaded guilty in November 2004 to charges brought by the US Attorney's Office for the Southern District of California to one count of conspiracy to commit securities fraud, wire fraud, bank fraud and falsification of the books, records and accounts of a public corporation.

On January 23, Rodda was sentenced to six months in the custody of the Bureau of Prisons, six months of home detention and two years of supervised release. Twelve other executives - including Peregrine's former chief executive officer and chief financil officer – have pleaded guilty in the ongoing criminal case.

Further reading:

Former Peregrine exec facing US fraud charges