Richard T. Nelson, the former general counsel of Peregrine Systems Inc., admitted Thursday in U.S. District Court to inflating the company's revenue

Former executive for a San Diego-based software company who failed to correct false and misleading financial statements has pleaded guilty to bank fraud.
Richard T. Nelson, the former general counsel of Peregrine Systems Inc., admitted Thursday in U.S. District Court to inflating the company's revenue in statements to banks. Prosecutors say 18 Peregrine executives, including former Chief Executive Stephen Gardner, have been charged with overstating revenue from 1999 to 2001 to inflate the company's stock value. Gardner was sentenced last month to eight years in prison. Nelson admitted he got a $150 million line of credit for the company, even though he knew the company's financial statements were false. After Peregrine disclosed the improprieties, shareholders lost an estimated $3 billion. The company filed for bankruptcy and was eventually was sold to Hewlett-Packard.