Washington (Sept. 12, 2002) -- Federal prosecutors in San Francisco have charged Yervant David Lepejian, the founder and former head of San Jose, Calif.-based HPL Technologies Inc., with faking sales before taking the software company public last year and fabricating more than 90 percent of its revenue.
Prosecutors allege that Lepejian inflated HPL's sales by 12 percent in fiscal 2001 and by 77 percent in fiscal 2002, booking more than $28 million of bogus sales, Dow Jones Newswires reported. In July, the company removed Lepejian and began an investigation into accounting irregularities. HPL also called off its pending acquisition of IDS Software Systems and postponed its annual shareholders meeting and the reporting of its fiscal 2003 first quarter results, according to filings with the Securities and Exchange Commission.
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