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. More of Bill Gates' Investments in GMO and Mass Indoctrination Under the Disguise of 'Donations'

    Microsoft's arrogant and famously corrupt co-founder is taken to task by those whom he is trying to bamboozle for monopoly, unlimited cross-generational power, and never-ending profit without risk



  2. Home Depot Confirmed a Victim of Microsoft's Bad Security, Microsoft Lays Off Security-Related Staff

    News reports circulate showing that Home Depot was knowingly careless with its Windows dependency while Microsoft lays off staff focused on security



  3. European Patent Office/Organisation - Suspicion of Improper Collusion Between EPO President and Chairman of the Administrative Council: Part III

    A preliminary look at Battistelli's reign and how regulatory powers got abolished, leaving the EPO reckless and largely unaccountable



  4. Links 21/9/2014: xorg-server 1.16.1, Linux Kernel 3.16.3

    Links for the day



  5. Links 20/9/2014: GNOME 3.13.92, Android L

    Links for the day



  6. Scanning Patent Troll Implodes; Is the Podcasting Patent Troll Next?

    MPHJ loses and Personal Audio LLC perhaps wins for the last time since software patents are quickly losing legitimacy in the United States



  7. If CAFC is Not Above the Law, Then it Should be Shut Down Now

    A long series of abuses in CAFC may as well suggest that this court has become broken beyond repair



  8. The Latest From Microsoft Patent Trolls and Patent Partners

    Microsoft-linked and Linux-hostile trolls continue their relentless attacks (albeit with little or no success) while patents as a weapon lose their teeth owing to a Supreme Court ruling



  9. Microsoft Proves That Its Massive Layoffs Are Not About Nokia

    Microsoft is laying off a lot of employees who have nothing at all to do with Nokia



  10. Links 19/9/2014: Another Red Hat Acquisition, Netflix Dumps Microsoft Silverlight and Brings DRM to WWW

    Links for the day



  11. Links 18/9/2014: Windows Copying GNU/Linux, Germany Moves to Security

    Links for the day



  12. Web Site 'Patent Progress' Now Officially 'Powered by CCIA' (FRAND Proponent, Microsoft Front)

    After talking a job at CCIA, "Patent Progress" and its chief author should be treated as dubious on real patent progress



  13. Articles About the Death of Software Patents in the United States

    Recent coverage of software patents and their demise in their country of origin, where even proponents of software patents are giving up



  14. The Death of Software Patents is Already Killing Some Major Patent Trolls

    VirnetX seems to be the latest victim of the demise of software patents in the United States



  15. More Microsoft Layoffs

    More Microsoft layoffs go ahead as the company is unable to compete



  16. ODF on the Rise

    Milestones for OpenDocument Format (ODF) and the launch of FixMyDocuments



  17. Links 17/9/2014: CoreOS, ChromeOS, and systemd

    Links for the day



  18. Italy is Cracking Down on Microsoft's Monopoly Abuse While Gradually Moving to GNU/Linux

    Italy is not only moving to Free/Open Source software but also to GNU/Linux while at the same time barring Microsoft from forcibly tying Windows to new PCs



  19. OpenSUSE's 'Assurances' Are Classic MBA School Hogwash

    OpenSUSE is not part of any commitment, except for SUSE's; the impact of the Novell/SUSE acquisition casts uncertainty on the project's future



  20. Links 16/9/2014: Firefox OS Smartphones in Bangladesh, “Treasure Map” of the Internet

    Links for the day



  21. The United Kingdom Should Dump Microsoft For the Sake of National Security

    The UK has issues of Microsoft dependency and Windows viruses; its migration to Free software and GNU/Linux is not fast enough to guard its autonomy in the age of digital imperialism



  22. CBS Hires Even More Microsoft Staff to Cover Microsoft Matters

    CBS continues to be infested with Microsoft staff past and present (this time Dave Johnson) and the bias in output is quite revealing



  23. Microsoft Has Just Killed Minecraft for GNU/Linux and the Possibility of Free/Open Source Releases

    Persson sells out to Microsoft and lets the abusive monopolist destroy the popular cross-platform game that a community has been built around



  24. Another Reason to Boycott Intel UEFI

    More anti-competitive aspects are revealed inside UEFI, which helps merginalise GNU/Linux



  25. Quick Mention: Novell and SUSE Passed to Microsoft's 'Partner of the Year', Microsoft Focus

    Novell is changing hands again, and falling into the hands of even more Microsoft-friendly actors



  26. Links 16/9/2014: Linux 3.17 RC5, KDE Frameworks 5.2.0

    Links for the day



  27. Željko Topić, Benoît Battistelli, and the European Patent Office (EPO): Part II

    Part II of our look into the EPO appointment of Željko Topić and other matters showing the dubious integrity of the EPO



  28. Links 14/9/2014: Android-based Watches Earn Optimism

    Links for the day



  29. Links 14/9/2014: Eucalyptus Devoured

    Links for the day



  30. Links 11/9/2014: Linux Toilet Project, Linux-Based Wheelchair Project

    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