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. The EFF Back to Tackling Software Patents, Not Just Patent Trolls

    Electronic Frontier Foundation lawyers start targeting large companies that exploit patents for intimidation and extortion, not just patent trolling



  2. Microsoft Wants to Devour the Competition (Linux), Devour People's Data

    Refuting the "new Microsoft" propaganda and some ludicrous concept that Microsoft is now "playing nice"



  3. Benoît Battistelli Thinks 'President' is Above the Law, Decides to Ignore the Court's Ruling

    Staff of the EPO is given yet more reasons to protest tomorrow at the British Consulate, for the so-called 'President' of the EPO reminds everyone of the very raison d'être for the protest -- a vain disregard for the rule of law



  4. Links 24/2/2015: Xfce 4.12 a Week Away, GNOME 3.16 Previewed

    Links for the day



  5. Links 23/2/2015: Ubuntu Kylin 14.04.2 LTS, Cinnamon 2.6 Previews

    Links for the day



  6. IRC Proceedings: February 8th - February 21st, 2015





  7. The EPO's Sham 'Internal Investigation' of EPO Vice-President Željko Topić's Affairs

    The EPO never investigated the Željko Topić affair, it only pretends to have investigated (one small aspect, i.e. cherry-picking) using a Benoît Battistelli-controlled group



  8. Links 21/2/2015: GNOME 3.15.90, Google Wins Android Lawsuit

    Links for the day



  9. Microsoft AstroTurfing War on GNU/Linux is Still Going On, But Hidden Better, Uses API as Instrument of Lock-in

    The corruptible press continues to describe blatant attacks (Embrace, Extend, Extinguish) against GNU/Linux and Free software as Microsoft 'embracing' Open Source



  10. Lenovo's Superfish Scandal is Spyware on Top of Spyware (Microsoft Windows), the Problem is Inherently Proprietary Software

    Shifting focus to the root problem, which is neither Lenovo nor its laptops but the non-free programs installed on hardware



  11. Benoît Battistelli Once Again Threatens EPO Staff That 'Dares' to Protest, Battistelli Exploits Terror Attacks to Pretend to Respect Free Speech

    The European Patent Office (EPO) President, Benoît Battistelli, reportedly started threatening -- as before -- staff that decides to exercise the right to assemble and protest against abuses, including the abuses of President Battistelli himself



  12. Links 20/2/2015: Android Studio v1.1, GDB 7.9

    Links for the day



  13. Links 20/2/2015: Bloomberg Joins Linux Foundation, ClearOS Community 6.6.0

    Links for the day



  14. The Chartered Institute of Patent Attorneys Slams the European Patent Office for Structural Failings

    An important letter which we overlooked while writing yesterday's 4 articles about the European Patent Office (EPO); yet another key stakeholder complains



  15. Links 19/2/2015: Hewlett-Packard on Cumulus Linux, Previews of GNOME 3.16 Beta

    Links for the day



  16. Techrights Under Attack Again, Shortly After Important EPO Articles

    Techrights highlights a pattern that is months old; Site faces availability issues shortly after reports about the European Patent Office and its abuses



  17. EPO Staff Protests Against Benoît Battistelli’s Lowering of Patents Quality (Scope Expansion and Software Patents for Profit)

    A protest in Munich in less than 6 days will target Mr. Sean Dennehey, who has helped Battistelli cover up his abuses and crush legitimate critics, whom he deemed illegal opposition as if the EPO is an authoritarian regime as opposed to a public service which taxpayers are reluctantly (but forcibly) funding



  18. Breaking: European Patent Office Sued by Its Own Staff in The Hague, Must Unblock Staff's Voices

    The crooked management of the European Patent Office (EPO) gets in legal trouble after repeated attempts to cover up abuses and suppress criticism



  19. Željko Topić's History in SIPO Leaves a Legacy of Alleged DZIV Vehicles (Bribes), Authorship Abuses, and Intimidation Against Reporters

    Another deep look at Željko Topić's background in Croatia, preceding his very notorious appointment to the EPO where he now serves as Benoît Battistelli's most controversial attack dog



  20. The Old Obsession With Patent Trolls Continues to Distract From Debate About Software Patenting

    A roundup of recent coverage about monopolies on algorithms in the United States



  21. Links 19/2/2015: 64-bit ARM Linux, Chinese New Year

    Links for the day



  22. Links 18/2/2015: Linux Report, FlightGear 3.4

    Links for the day



  23. EPO Scandals: The Story So Far

    An overview of articles about mischief, misconduct and breach of laws at the EPO



  24. Links 17/2/2015: TripleO, Pivotal

    Links for the day



  25. Links 17/2/2015: SystemD 219, Frugalware 2.0 (Rigel) Released

    Links for the day



  26. Željko Peratović Slammed for Whitewashing Željko Topić After Publishing Important Piece on Behalf of Key Sources

    Response from Ivan Kabalin to Zeljko Peratovic's so-called "apology" which is both mysterious and seemingly inadequate as it does nothing to actually explain what was wrong (if anything)



  27. Benoît Battistelli Has Made Oversight of European Patent Office Absolutely Impossible





  28. Microsoft Already Killed Nokia, Don't Let It Kill Android Players Too

    Microsoft's strategy against Android mirrors the company's evil strategy that derailed MeeGo and Nokia



  29. Intel Continues to Attack Software Freedom Through UEFI

    The Trojan horse that Microsoft uses to cement its monopoly on desktops and laptops (making it hard or impossible to install and run GNU/Linux) is also being misused to block Coreboot



  30. Links 16/2/2015: Netrunner 15, Bridge Linux

    Links for the day


CoPilotCo

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

CoPilotCo

Recent Posts