EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

01.08.09

SEC Goes Hunting Microsoft Again, Violations Alleged

Posted in Finance, Fraud, Microsoft, Novell at 7:36 pm by Dr. Roy Schestowitz

“Microsoft’s perspective is best reflected by Bob Herbold, Chief Operating Officer, to whom the CFO reports. Bob very sincerely replied, “Bill, everyone is doing it.” My response was that Microsoft is a leader and that others are now seeking to emulate these fraudulent practices they have legitimized. Naturally Bob was not pleased by this perspective and that was our final conversation. A second informal response came when Microsoft asked PR Newswire to stop issuing my press releases.

“Microsoft is PR Newswire’s largest client.”

Bill Parish

IN THE WORDS of Yogi Berra, it’s deja vu all over again.

US ‘renews’ Microsoft share probe

The US financial watchdog, the Securities and Exchange Commission (SEC), has reopened an insider trading inquiry into Microsoft, reports say.

This is not the first time that the SEC steps in because of allegations of fraud against Microsoft (the company settled to escape this previous blunder). With Satyam all over the headlines for massive fraud, this sure could get interesting. Might Novell be next? The SEC doesn't spot it and it's already seen as fishy by some.

Related posts:

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

10 Comments

  1. The Mad Hatter said,

    January 8, 2009 at 11:25 pm

    Gravatar

    The SEC has over the last 8 years been somewhat toothless. It will be interesting seeing if anything changes with the change of administration in the US.

    That said, I don’t think that Microsoft is the only company doing this. Over the last 20 years I’ve noticed more businesses doing things that are legally questionable, and this seems to be a problem across a wide range of industries. It seems like the chase for profit has corrupted management.

    Of course this is only what I see. I know that the businesses in question will claim that they are acting legally, that everything they have done is proper, that they are only trying to protect shareholder equity, however it does not look like this to me.

  2. AlexH said,

    January 9, 2009 at 3:35 am

    Gravatar

    @Mad Hatter: in cases like this, which is insider dealing perpetrated by individuals, the SEC have generally had a decent track record.

    Institutional – and particularly multi-national – problems they’ve found harder, but then, they have a much better record than practically any other agency on earth because they reward tattle-tales with lenient treatment. See, for example, Enron, Virgin vs. BA, or any other numerous “big” frauds.

  3. Roy Schestowitz said,

    January 9, 2009 at 3:41 am

    Gravatar

    Even a Vice President at Microsoft was recently accused.

    Microsoft exec dumped stock prior to Red Ring announcement

    To make matters more murky, the sales were not registered with the Securities and Exchange Commission within the mandatory two days of the transaction, a result of an alleged “administrative error.” Microsoft has since remedied the issue by following the “procedures required of late-filers.”

    Microsoft’s Bach sold more stock before Xbox news

    Microsoft Corp. executive Robbie Bach sold $3 million more in company stock during the period leading up to an announcement about a costly flaw in its Xbox video game console than previously reported, according to a filing Monday with the Securities and Exchange Commission.

    Insider Trading Hasn’t Affect Microsoft Stock – Yet

    MarketWatch.com reports that Robbie Bach, president of Microsoft’s Entertainment and Devices division, sold $6.2 million of Microsoft stock just prior to announcing that Microsoft was going to have to extend XBox 360 warranties to three years because of extensive failures. The filings note that this was not part of any scheduled diversification or selling program; this was a conscious, unscheduled sale by the guy in charge of releasing news that could affect the value of Microsoft stock.

    [...]

    Insider trading is a very serious violation of the law; just ask Martha Stewart, who served five months in prison for avoiding losses of $43,000 through trades that just had suspicious timing (no insider trading was actually proven). This is $6.3 million that went straight into Robbie Bach’s pocket.

  4. AlexH said,

    January 9, 2009 at 4:00 am

    Gravatar

    @Roy: well, as your articles state, if he did it deliberately then they will catch him, because he has to register all his trades.

  5. Roy Schestowitz said,

    January 9, 2009 at 4:10 am

    Gravatar

    The SEC was asleep. I wrote about it extensively at the time and also addressed a a question at Bach (last week).

  6. AlexH said,

    January 9, 2009 at 4:26 am

    Gravatar

    Given they were the ones who found it, they were hardly asleep.

    What you mean is you wanted them to find him guilty.

  7. Roy Schestowitz said,

    January 9, 2009 at 4:43 am

    Gravatar

    I don’t think he was ever investigated or acquitted. I watched it closely.

  8. AlexH said,

    January 9, 2009 at 4:51 am

    Gravatar

    Difficult to see how you would know if the SEC investigated him or not.

    Also, you can’t be acquitted until you’re actually charged with something, and Bach was never charged with insider dealing. Selling shares in the company you work for isn’t automatically insider dealing.

  9. Roy Schestowitz said,

    January 9, 2009 at 4:53 am

    Gravatar

    Read the articles again, please.

  10. AlexH said,

    January 9, 2009 at 4:56 am

    Gravatar

    I’ve read the articles already, thanks. If you have a point, make it.

What Else is New


  1. South Korea's Government Will Show If Microsoft Loves Linux or Just Attacks It Very Viciously Like It Did in Munich

    Microsoft's hatred of all things GNU/Linux is always put to the test when someone 'dares' use it outside Microsoft's control and cash cows (e.g. Azure and Vista 10/WSL); will Microsoft combat its longstanding urge to corrupt or oust officials with the courage to say "no" to Microsoft?



  2. Links 19/5/2019: KDE Applications 19.04.1 in FlatHub and GNU/Linux Adoption

    Links for the day



  3. The War on Patent Quality

    A look at the EPO's reluctance to admit errors and resistance to the EPC, which is its very founding document



  4. Watchtroll, Composed by Patent Trolls, Calls the American Patent System “Corrupt”

    Another very fine piece from Watchtroll comes from very fine patent trolls who cheer for Donald Trump as if he's the one who tackles corruption rather than spreading it



  5. Unified Patent Court Won't Happen Just Because the Litigation Microcosm Wants It

    Unified Patent Court (UPC) hopefuls are quote-mining and cherry-picking to manufacture the false impression that the UPC is just around the corner when in reality the UPC is pretty much dead (but not buried yet)



  6. Links 17/5/2019: South Korea's GNU/Linux Pivot, Linux 5.1.3

    Links for the day



  7. Q2 Midterm Weather Forecast for EPOnia, Part 4: Happy Birthday to the Kötter Group?

    This year the Kötter Group commemorates the 85th anniversary of its existence. But is it really a cause for celebration or would a less self-congratulatory approach be more fitting? And does it create the risk that a routine tendering exercise at the EPO will turn into Operation Charlie Foxtrot?



  8. Links 16/5/2019: Cockpit 194, VMware Acquires Bitnami, Another Wine Announcement and Krita 4.2.0 Beta

    Links for the day



  9. The EPO's Key Function -- Like the UPC's Vision -- Has Virtually Collapsed

    The EPO no longer issues good patents and staff is extremely unhappy; but the Office tries to create an alternate (false) reality and issues intentionally misleading statements



  10. Stanford's NPE Litigation Database Makes a Nice Addition in the Fight Against Software Patent Trolls

    As the United States of America becomes less trolls- and software patents-friendly (often conflated with plaintiff (un)friendliness) it's important to have accurate data which documents the numbers and motivates better policy; The NPE (troll) Litigation Database is a move towards that and it's free to access/use



  11. Q2 Midterm Weather Forecast for EPOnia, Part 3: “Ein kritikwürdiges Unternehmen”

    A brief account of some further controversies in which the Kötter Group has been involved and its strained relations with German trade unions such as Verdi



  12. EPO Had a Leakage Problem and Privacy of Stakeholders Was Compromised, Affecting at Least 100 Cases

    The confidentiality principle was compromised at the EPO and stakeholders weren't told about it (there was a coverup)



  13. Links 15/5/2019: More Linux Patches and More Known Intel Bugs

    Links for the day



  14. False Hope for Patent Maximalists and Litigation Zealots

    Patent litigation predators in the United States, along with Team UPC in Europe, are trying to manufacture optimistic predictions; a quick and rather shallow critical analysis reveals their lies and distortions



  15. The Race to the Bottom of Patent Quality at the EPO

    The EPO has become more like a rubber-stamper than a patent office — a fact that worries senior staff who witnessed this gradual and troublesome transition (from quality to raw quantity)



  16. Q2 Midterm Weather Forecast for EPOnia, Part 2: Meet the Kötters

    An introduction to the Kötter Group, the private security conglomerate which is lined up for the award of a juicy EUR 30 million contract for the provision of security services at the EPO



  17. Links 14/5/2019: Red Hat Satellite 6.5, NVIDIA 430.14 Linux Driver and New Security Bug (MDS)

    Links for the day



  18. Links 14/5/2019: GNU/Linux in Kerala, DXVK 1.2, KDE Frameworks 5.58.0 Released

    Links for the day



  19. Q2 Midterm Weather Forecast for EPOnia, Part 1: Urgent Shitstorm Alert

    Experts at the European Patent Office's (EPO) weather observation station have just issued an urgent alert warning about a major shitstorm looming on the horizon



  20. Patents That Were Gleefully Granted by the EPO Continue to Perish in Courts

    The decreasing quality of granted European Patents already becomes a growing problem if not a crisis of uncertainty



  21. Links 13/5/2019: ExTiX 19.5 and GNU Radio Conference 2019

    Links for the day



  22. The Microsoft Guide to the Open Source Galaxy

    Thou shalt not...



  23. Microsoft Would Kill the Goose for Money

    Microsoft is just 'monetising' Open Source by using it as 'bait' for Microsoft's proprietary software; those who we might expect to antagonise this have effectively been bribed by Microsoft



  24. Links 13/5/2019: Nanonote 1.2.0, OpenMandriva Lx 4.0 RC, and GNUnet 0.11.4

    Links for the day



  25. Professionally Incompetent EPO Management

    The EPO remains an awful employer, with top-level management largely responsible for the loss of talent and even money



  26. Links 12/5/2019: Linux 5.1.1, GDB 8.3, KStars 3.2.2 Released

    Links for the day



  27. Did Battistelli 'Steal' ~$100,000,000 Euros From the EPO?

    While enjoying diplomatic immunity the thug from CEIPI (who is back at the EPO as a jurist) passed millions if not billions (over the long run) in liabilities; this was done with total and inexcusable impunity, no effective oversight



  28. The Biased EPO Does Not Want to Hear From Anyone Except Those Who Pay the EPO

    The EPO's corruption and violations of the law are a threat to everyone in the world; the EPO only ever listens to those who pay for "access" or those who embrace the "religion" of the EPO



  29. Team UPC Has Run Out of Arguments, So Now It's Just Writing Anti-Brexit Rants With Testicles in the Headlines

    Nothing has worked for firms that crafted and lobbied hard for the Unified Patent Court (UPC); after necrophilia a new low is being reached



  30. Making the Patent System About Productive Actors (Again), Not a Bunch of Law Firms and Trolls

    The US patent system is going out of shape and out of tune, just like the EPO when Battistelli came to it, dismantling the rule of law and even judges whom he did not like


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts