U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20059 / March 29, 2007
Accounting and Auditing Enforcement Release No. 2586 / March 29, 2007
United States of America v. David McQuillin (United States District Court for the Southern District of New York Information No. 1:07-cr-00017-LMM - filed January 8, 2007)
Securities and Exchange Commission v. Lawrence B. Evans, et al., (United States District Court for the District of Massachusetts, Civil Action No. 07-10027-JLT - filed January 8, 2007)
Former Aspen CEO Pleads Guilty to Securities Fraud
The Securities and Exchange Commission ("Commission") announced today that on March 26, 2007, David McQuillin, the former chief executive of Aspen Technology, Inc., a Cambridge-based software company, pleaded guilty to one count each of conspiracy and securities fraud in connection with charges brought by the United States Attorney's Office for the Southern District of New York.
On January 8, 2007, the Commission filed a civil injunctive action against McQuillin and others, alleging that they engaged in a scheme to inflate revenue reported in Aspen's publicly-filed financial statements and in press releases. McQuillin's guilty plea relates to the same conduct alleged in the Commission's civil enforcement action. In particular, the Information to which McQuillin pleaded guilty charged that in July 2001, McQuillin signed a software license agreement with a Russian Oil Company and then (a) backdated it to June 2001 so that the revenue could be recognized in Aspen's fiscal year ending June 30, 2001, and (b) provided the Oil Company with a written side agreement that allowed the Oil Company to cancel some or all of the sales contract. The Information further charged that in August 2001, McQuillin and other senior Aspen officers falsely represented to Aspen's outside auditor that the Oil Company sales agreement was not subject to any side agreements.
McQuillin is scheduled to be sentenced on July 11, 2007.
The Commission's civil enforcement action is pending in United States District Court in Massachusetts.
For further information, please see: Litigation Release No. 19960 (January 8, 2007).