A man who allegedly leaked information about a nasty earnings surprise at Peregrine Systems (PRGN) has been arrested, according to law enforcement authorities.
Mark Rosenbaum, a former employee of the San Diego software firm, faces five felony counts related to his alleged posting of confidential company information on the Peregrine Systems section of the Yahoo! Finance message boards. A person familiar with Peregrine says Rosenbaum worked there as a network administrator and left last October amid the layoff of hundreds of workers. Rosenbaum couldn't be reached for comment.
reported last week, six hours before Peregrine issued a press release Jan. 2 saying it wouldn't hit financial targets for the third quarter ended Dec. 31, someone using the name "paragreen69" gave advance word of that shortfall in a message on Yahoo!'s boards.
That news hammered Peregrine's shares on Jan. 3, sending the stock down from $14.51 to $9.27. On Monday, Peregrine's shares were trading at $9.29, down 11 cents.
Rosenbaum, 51, made the Jan. 2 posting, plus another one on Jan. 8, by using the Internet accounts of other Peregrine Systems employees, according to the San Diego County district attorney's office. He faces five felony counts in all: two for unauthorized access to a computer system, two for "false personation" and one for possession of a firearm.
A specialized law enforcement group in the district attorney's office called Computer and Technology Crime High Tech Response Team executed a search warrant Thursday night at Rosenbaum's home in Poway, north of San Diego. The D.A.'s office says Rosenbaum made the postings using a computer in his home.
Rosenbaum, who may face additional charges, currently faces up to three years and eight months in state prison.
He was released from jail Friday after posting bail, according to the D.A.'s office, and faces arraignment on Friday.