Bonum Certa Men Certa

Microsoft and Bribery, Fraud

Money on a dark desk



Summary: A look at some of Microsoft's latest bribes which are not a legal offence and some of the criminal acts of Microsoft and Bill Gates' Corbis

WHEN IT COMES to Microsoft, there ought to be a distinction between "bribery" in the legal sense and "bribery" in the more metaphorical sense. Microsoft does both. Many mainstream publications accused Microsoft of "bribery" or attempted bribery when it decided to simply buy some customers rather than earn any [1, 2, 3]. Having failed to achieve much with this strategy (billions are being lost in the process), Microsoft is rebranding the same efforts and marketing them differently, this time characterising them as "charitable". Yes, it's like charitable bribery. George Orwell would love it!



Well, there's a catch. In order to enable the $3 donation, users must set Bing as their default search engine.


It's self evident. Microsoft is becoming rather scummy. But it's marketed as a "charitable" endeavour, so how dare we criticise it? There are other miserable new attempts to crush Google's cash cow (because Google also competes against Windows and Office, which are Microsoft's cash cows).

“Rather sad when a company has to buy users of Bing and developers for Phone 7, don't you think?”
      --Pamela Jones, Groklaw
According to Microsoft Nick, Microsoft is now offering another type of bribe for potential Windows phones developers. We gave several other examples last month. Groklaw says: "Rather sad when a company has to buy users of Bing and developers for Phone 7, don't you think?" Groklaw also gives this example where Microsoft uses its employees to artificially inflate numbers.

Why can't Microsoft attempt to earn customers and developers without bribing them? It's a rhetorical question actually. How can Microsoft justify laying off more employees this month [1, 2]? Must it give their wages to people whom it tries to lure in?

Now we move on to some more serious charges where "bribery" means bribery in the legal sense. That's where prosecution and jail sentence happen to those who are not affluent enough to bail themselves out (or bribe officials). Last week we wrote about the Bill Gates-owned Corbis scandal [1, 2], which came to light [1, 2] at a time when corruption in Intel and Dell also came to light. Yesterday we wrote about it again [1, 2] (also the day before that), owing to the fact that Dell fraud teaches us something about its attitude towards GNU/Linux. As the SEC put it in its press release:

Christopher Conte, Associate Director of the SEC’s Division of Enforcement, added, “Dell manipulated its accounting over an extended period to project financial results that the company wished it had achieved, but could not. Dell was only able to meet Wall Street targets consistently during this period by breaking the rules. The financial results that public companies communicate to the investing public must reflect reality.”


It seems likely that Microsoft is doing the same thing and a few months ago we wrote about the Pequot case. Coverage about this can be found in:



According to this new report, the SEC does one thing right by giving "$1 million reward for information in Pequot insider trading case":

The money goes to Glen Kaiser and Karen Kaiser of Southbury, Conn. She’s the ex-wife of David Zilkha, a former Microsoft Corp. employee who had accepted a job at Pequot.


The SEC in general has decided to reward whistleblowers, which is the right thing to do.

The soon-to-be-signed financial reform package creates a new whistleblower program with potentially huge cash rewards for individuals who provide information about securities law violations to the U.S. Securities and Exchange Commission.


As a reminder, $4 million went to the Microsoft employee who exposed financial fraud inside the company and produced/shared documents as evidence. With the SEC's new rules in place, how long will it take for another person who works for Microsoft to report Microsoft fraud? Microsoft paid its former CFO millions of dollars to keep quiet.

"One strategy that Microsoft has employed in the past is paying for the silence of people and companies. Charles Pancerzewski, formerly Microsoft’s chief auditor, became aware of Microsoft’s practice of carrying earnings from one accounting period into another, known as “managing earnings”. This practice smoothes reported revenue streams, increases share value, and misleads employees and shareholders. In addition to being unethical, it’s also illegal under U.S. Securities Law and violates Generally Accepted Accounting Practices (Fink).

--2002 story about Charles Pancerzewski, Microsoft

Recent Techrights' Posts

Dr. Andy Farnell on Marketing Bad Things Like Slop Using FOMO (Fear of "Being Left Behind")
many of the same themes we often cover here
IBM Stock Compared to Bitcoin, Fake Articles About IBM Promote Myths About IBM
The stock moves based on false marketing
Oligarchs and States Always Attempted to Obstruct Efforts to Expose Their Corruption
We commend the administrator who consistently and adamantly defend the freedom of speech
 
LLM Slop Isn't Replacing Online News, It's Just a Pest That's Gradually Going Away as Money for Slop Runs Out
Slop likes to talk about itself (like some kind of 'web-cancer')
Not Journalism: Almost 80% of the 'Articles' We Saw About Torvalds and 'Vibe Coding' Are LLM Slop (Sometimes Slop Images)
The real issue is, Torvalds who created Git as a solution to proprietary prison is entertaining Microsoft's own proprietary prison
EPO People Power - Part XXXIII - Interest From Some European Media, For a Change
Without it, we'll become another Russian Federation
Just Another Reminder That Microsoft Didn't Deny Mass Layoffs
Remember that Microsoft never denied this
GNU/Linux Measured at 6% in Réunion This Year
Population sizes like a million people are nothing to sneeze at
Bluewashing Continues, Red Hat Onboarding Interns in Low-Paid Regions
It's the end of the second Monday of 2026
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, January 12, 2026
IRC logs for Monday, January 12, 2026
Gemini Links 13/01/2026: ScottoRang and Outage
Links for the day
GNU/Linux Exceeding 6% in Cape Verde
Windows is measured as down sharply
When It Comes to Health, Slop is a Flop and It Kills People
Chatbots will mostly die after many people die due to them
2026 Has Begun Well for GNU/Linux Users (and for Us)
A lot of the anti-Linux FUD we got accustomed to seeing some years ago became scarce
Links 12/01/2026: Vista 11 Exodus and Famicom/NES Game
Links for the day
Links 12/01/2026: Twitter (X) Being Blocked in More Countries, PTAB Besieged by Cheeto Appointees (Bad Patents Getting Through)
Links for the day
Links 12/01/2026: Brussels Plotting Exit From GAFAM (US), Carole Cadwalladr Explains "Peter Thiel's New Model Army"
Links for the day
Scheduled Maintenance Between 15th of January and Days to Follow, Free Software Foundation (FSF) Looking to Add 43 More Members by 16th of January
People who value Software Freedom should consider joining to support the FSF
Bracing for Microsoft Layoffs, Tired of Microsoft Lies, Microsoft Staff Wants Transparency, Not Face-Saving Coverup From Frank Shaw
totally made up stock price
GNU/Linux Estimated at Around 5% in Montserrat
another country where the "share" of GNU/Linux is now measured at 5%
GNU/Linux Exceeding 5% in Guadeloupe According to statCounter
GNU/Linux "share" estimates in Guadeloupe
Dr. Richard Stallman @ Georgia Tech Next Week
More Than One Week From Now
EPO People Power - Part XXXII - Little Hope That European Press Will Attempt to Expose Drug Abuse in Europe's Second-Largest Organisation
What does this tell us about the press in Europe?
Three most controversial Australian authors linked to St Paul's, Coburg
Reprinted with permission from Daniel Pocock
Links 11/01/2026: Data Breaches and Recent (Early 2026) Political Developments
Links for the day
Gemini Links 12/01/2026: Insomniacs After School and Boycotting Amazon
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, January 11, 2026
IRC logs for Sunday, January 11, 2026
Brett Wilson LLP 'Dropping' the LLP, Is This Rebranding?
It's not a coincidence or a glitch, there was a formal change somewhere in the system
Can IBM Still Control the Narrative?
We'll see what comes out through the grapevine later this week
IBM SkillsBuild as Microsoft Training, Microsoft Vendor Lock-in, Microsoft Surveillance
Microsoft benefits from IBM's "training"
EPO People Power - Part XXXI - Almost No Crime is Possible Without Enablers and Complicit Colleagues
By the middle of January 2026 we'll have taken things up another gear
Aruba's GNU/Linux Adoption Seems to Have Reach All-Time High This Year
ChromeOS rose by a lot too
After the LLM Slop Frenzy...
In every way, slop is no better than spam
Links 11/01/2026: 'Nothing to Lose' in Iran and Kyiv Restores Electricity
Links for the day
Gemini Links 11/01/2026: "Late To The Party" and "Thinking About Software Licences"
Links for the day
Links 11/01/2026: Bob Weir and Stewart Cheifet Perish
Links for the day
Higher Adoption Rates of GNU/Linux in Cyprus in Recent Years
there are some Cypriots who are championing Free software
Microsoft's linkedin.com is Shrinking, Expect LinkedIn Layoffs to Carry on in 2026
Expect the mass layoffs and office closures to carry on there, maybe as early as next week
Gemini Links 11/01/2026: Scott Morgan and 'The Unix Way'
Links for the day
IBM to Be 'Reorganised'
The rich look for ways to 'monetise' what's left IBM
Dr. Andy Farnell Explains Why He'll Stop Sending E-mail to Microsoft and Gmail Users
The article is long and well worth reading
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, January 10, 2026
IRC logs for Saturday, January 10, 2026