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

02.16.10

Did Microsoft Pay Millions of Dollars to Hide Information About Financial Malpractice?

Posted in Deception, Finance, Fraud, Microsoft at 8:07 am by Dr. Roy Schestowitz

Money on a dark desk

Summary: On the face of it, Microsoft essentially bribes its former CFO to keep quiet about what he knows; the mainstream press reveals some very damning information

THIS morning we wrote about Microsoft tax dodge/evasion which was facilitated by a former Microsoft general manager who is now working for the government. A couple of years ago we also wrote about Microsoft paying millions of dollars for a former employee to keep quiet about financial fraud that he exposed. Charles Pancerzewski was paid $4 million to keep quiet [1, 2]. If his allegations were flawed (which they were not, as there was concrete evidence that the judge accepted and the SEC then stepped in), why would Microsoft shell out so much money for his silence?

According to this new article from CFO.com, Microsoft’s previous CFO, who abruptly quit the company a few months ago, mirrors some of the above. Microsoft gave him a gift of $1.9 million. [via Joseph Tartakoff]

The sum, to be paid in two equal installments on December 31, 2009, and March 31, 2010, comes in exchange for promising not to sue or otherwise disparage Microsoft after his departure, the tech giant recently disclosed in its most recent quarterly filing with the Securities and Exchange Commission.

Such payouts are often written into employment contracts at the outset of a CFO’s tenure as protection from the career risks of making big gambles on corporate strategy. But some experts say Liddell’s was out of the ordinary since he did not have an employment contract or other explicit promise of such a sum. In fact, Microsoft’s most recent proxy, filed at the end of September, claims its top executives “are not entitled to any payments upon termination of their employment or following a change of control of Microsoft” except under certain conditions that did not apply to Liddell. (Speaking through a GM spokesperson, Liddell said he would have no comment.)

[...]

While that raises questions about why Liddell might have left Microsoft after four and a half years there, at least part of the “quo” is spelled out in the extremely detailed resignation letter Liddell signed, also filed with the SEC.

The letter contained all the standard promises, such as that Liddell would not sue or disparage the company or disclose any of its secrets, but with some language that is highly specific for such contracts.

Wow.

“No reporter worth there salt should have been reporting unaudited numbers. They should have learnt their lesson from Enron.”
      –Oiaohm
Microsoft essentially faked its financial results at the end of last month [1, 2, 3, 4]. This is something that we showed.

As our reader Oiaohm pointed out two weeks ago (in IRC), “Now I know what the problem is. (Unaudited) cannot be entered into sharemarket trackers… Now big question why in 31 days they could not got their reports Audited that is a big thing. I don’t know the USA sharemarket audit requirements… Here its use a government and asx approved firm for auditing. Does not cost much as long as you have all you paperwork in order… Problem I have with those MS numbers since they are not audited they can be doing a big E… No reporter worth there salt should have been reporting unaudited numbers. They should have learnt their lesson from Enron.”

It looks rather possible that Microsoft is still committing financial fraud. The article above confirmed a long-held suspicion backed by a lot of evidence. It’s not far fetched at all for a company that allegedly has orgies and drug parties these days [1, 2]. Perhaps it’s time for the SEC to pay Microsoft another visit (as it did some years ago after another case of financial fraud that Microsoft had paid to suppress).

A lot of people blew the whistle on Bernard Madoff but their complaints were repeatedly ignored for Madoff had the reputation of a rich man. Only when he turned himself in did regulators take this seriously. Given that a Microsoft shareholder compared Ballmer and Bill Gates to Bernard Madoff just a year ago, it’s probably time to investigate. The “shut up” money that Microsoft paid Chris Liddell ought to be overridden by the law’s needs.

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email
  • Slashdot

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

A Single Comment

  1. uberVU - social comments said,

    February 17, 2010 at 12:06 pm

    Social comments and analytics for this post…

    This post was mentioned on Identica by schestowitz: Did #Microsoft Pay Millions of Dollars to Hide Information of Financial Malpractice? http://ur1.ca/mhp0 seems possible…

What Else is New


  1. Links 30/9/2020: Nitrux 1.3.3, Tracker 3.0

    Links for the day



  2. [Meme] Is IBM's Proprietary Software Surveillance in the 2020 Election a Form of Corporate 'Meddling'?

    Called after an infamous recipient of a Nazi medal (Mr. Watson), an “app” with secret code and remote logging/recording will be used to determine whether the Orange One gets re-elected



  3. Learning to Say “No!” to Tyrants

    IBM continues with its old and oppressive/repressive agenda, even if this time around it's thinly disguised as "tolerance" and "ethics"



  4. Links 29/9/2020: Fedora 33 Beta, Krita 4.4.0 Beta 2, Stellarium 0.20.3 and Mesa 20.2 Released; 20 Million Downloads From the LVFS

    Links for the day



  5. Another Day of ZDNet Being ZDNet, Calling Windows “Linux” (to Confuse People and Help Microsoft Sell Vista 10)

    Microsoft propaganda site ZDNet is keeping up with the tradition of presenting Windows as "Linux" and promoting Windows even in the "Linux" section of the site



  6. [Meme] It's Crazy Not to Eliminate Lame Words That Might Offend Somebody

    If the word “stupid” offends you, then maybe programming isn’t for you, in the same sense that submitting patches with Git over E-mail shouldn't be hard if/when you can develop decent code with sanity checks



  7. IBM Fought for 'Master Race' and Now It's Banning the Word 'Master'

    A lot of the current push to ban the word "master" came from Red Hat (soon IBM, helped by Intel and Microsoft for the most part); we take a hard look at IBM's history to better understand the incredible double standards and what the real motivations might be



  8. IBM's Founder, Mr. Watson (Yes, That Watson), Had “Very Keen Sense of Public Relations”

    "Watson" is a lot more offensive than those supposedly offensive words IBM is working to purge; think about those hundreds of Red Hat workers who are black and were never told about ethnic purges of blacks facilitated by IBM (their new boss)



  9. Under IBM's Leadership Red Hat Becomes a SPAM Marketing Operation, Sending Mass Mails Without Authorisation and Making It Impossible to Unsubscribe

    Red Hat seems incapable of respecting people's inboxes; it subscribes people to things which they never ever subscribed to and makes it impossible to unsubscribe; what has Red Hat become or succumbed to?



  10. EFF: Sitting on a Massive Pile of Money and Members Are Less Than a Third of the Revenue

    As part of our series which explores non-profits turning against their goals (sometimes in pursuit of money, even if that means sellout) we take a good look at the EFF in this age of unprecedented consolidation of wealth and power



  11. IRC Proceedings: Monday, September 28, 2020

    IRC logs for Monday, September 28, 2020



  12. [Meme] Running Public (or Private) Interest Groups for Profit

    The Linux Foundation is picking up some more ‘surveillance capitalism’ money, in the name of… ‘helping’ Linux?



  13. The Concept of Martyrdom in Free Software and the Threat of Demonisation in the Media

    Leaders or figureheads of public interest advocacy are being dismissed as crazy and rude whilst corporations that maim and kill millions of people are spun as "professional" and even "altruistic"; don't fall for it



  14. More Money Does Not Necessarily Mean More Stable Organisations

    The corporate takeover of Free software (privatising the Commons) is a real problem that nobody in the media seems to be talking about, partly because this media is itself corporate and hence part of (participant in) the 'coup'



  15. EPO Management Looks for New and 'Innovative' Ways to Exploit Scientists and Distract From EPO Corruption

    EPO management is desperate for puff pieces, having just produced some greenwashing nonsense (about a dozen press items about this non-event) and now a bunch of self-promotional videos



  16. Before the New York Times Did a Number on Donald Trump It Changed Bill Gates' Tune

    When you speak strictly through a spokesperson it often means you're lying and/or hiding something; the Gates enigma remains unsolved more than a year later



  17. Links 28/9/2020: Linux 5.9 RC7, Review of Linuxfx 10.6, OpenSSH 8.4

    Links for the day



  18. Speaking Through Spokespeople is a Sign of Weakness, Such as Non-Denying and False Denials (or: Bill Gates Never Denied His Connections to MIT Through Jeffrey Epstein)

    Big liars lie shamelessly; the biggest liars lie through proxies and today we examine the evasive tactics of Bill Gates and his associates (who were closely connected to Jeffrey Epstein but refuse to even talk about that, except indirectly)



  19. IRC Proceedings: Sunday, September 27, 2020

    IRC logs for Sunday, September 27, 2020



  20. Accounting for Debconf 19 Travel... in 2020

    A deeper look or analysis of Debian expenditures, which grew more than twicefold for travel last year



  21. Don't Let Microsoft Make 'Open Source' Synonymous With Proprietary Monopoly GitHub

    Now that the OSI works for Microsoft instead of Open Source (no, GitHub isn’t Open Source; it’s inherently against Open Source) we need to understand the modus operandi and learn from old mistakes



  22. Links 27/9/2020: Puppy Linux 9.5, Nitrux 1.3.3

    Links for the day



  23. Public Relations and Tolerance Stunts Are Very, Very Cheap

    It's 2020 and people are asked to focus on superficial aspects of corporations rather than anything of substance (like the effects on society at large, notably exploitation and long-term harm)



  24. Open to Everything

    It always starts with good intentions...



  25. The OSI's President Apparently Does Not Know That His Own Employer (Salesforce) Works for ICE

    The hypocrisy (or double standard) of the OSI’s President is astounding; taking salaries paid in part by ICE budget (Salesforce works for ICE and similarly evil agencies) while protesting in a proprietary software platform of Microsoft (GitHub) about ICE (all this whilst actively participating in it regardless)



  26. [Meme] Communist Tactics

    To Microsoft, Linux is communism until Microsoft controls it (and then runs over it to crush it, the typical modus operandi)



  27. OSI President: Most or Half of the OSI's Money (Even Individual Donors' Money) Goes to a Microsoft-Led Initiative

    The OSI has turned from advocate of "Open Source" (a disingenuous attempt to set aside Free/libre software) to advocate of Microsoft and GitHub in just 3 years (since taking Microsoft's money/bribes)



  28. IRC Proceedings: Saturday, September 26, 2020

    IRC logs for Saturday, September 26, 2020



  29. The 24/7 'Tech' Worker (Babysitter of User-hostile Computing) and 'Expensive' Programmer

    The rights of workers are being reduced to nothing (many in their older years made redundant), even in an occupation that is indirectly responsible for automating and thus deprecating jobs in many other occupations



  30. Why Techrights is Totally Unexcited About the New Owner of Linux Journal

    Linux Journal might soon become an anti-Linux site (veiled hostility) if Slashdot's editorial preferences are anything to go by (Slashdot has just seized control of Linux Journal)


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