Bonum Certa Men Certa

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

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.

Comments

Recent Techrights' Posts

Microsoft-Connected Sites Trying to Shift Attention Away From Microsoft's Megabreach Only Days Before Important If Not Unprecedented Grilling by the US Government?
Why does the mainstream media not entertain the possibility a lot of these talking points are directed out of Redmond?
[Video] Microsoft's Attack on Education
Microsoft's cult-like activities and overt entryism
Microsoft Windows Used to Have Nearly 100% in China and Now Google Has 50% (With Android)
Will China bring about a faster "fall" for Microsoft?
GNU/Linux Growing Worldwide (the Story So Far!)
Microsoft is unable to stop GNU/Linux
 
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 21, 2024
IRC logs for Tuesday, May 21, 2024
Attempts to Sink the Free Software Movement (Under the Guise of Saving It)
We can see who's being drowned
Czech Republic: Windows Down From 98% to 43%, GNU/Linux Rises to Over 3%
modest gains for GNU/Linux
Links 22/05/2024: Pixar Layoffs and More Speculation About Microsoft Shutdowns/Layoffs (Ninja Theory)
Links for the day
Gemini Links 21/05/2024: Caesar II for MS-DOS and Reinventing the Assertion Wheel
Links for the day
Internal Memos/Communications Hinting at "a New, But Masked, Round of Layoffs" at Red Hat
A negative outlook heads of a long weekend
Nigeria: Windows Down to 6%, Android at All-Time High of 77%
Google is becoming the "new monopoly" in some places
[Meme] Money In, No Money Out (Granting Loads of Invalid European Patents)
EPO production?
Staff Representation at the EPO Has Just Explained to Heads of Delegations (National Delegates) Why the EPO's Financial Study is Another Hoax
Here we are again 5 years later
Canonical and Red Hat Are Not Competing With Microsoft Anymore
What a shame they hired so many people from Microsoft...
Links 21/05/2024: "Hating Apple Goes Mainstream", Lots of Coverage About Julian Assange Ruling
Links for the day
Gemini Links 21/05/2024: Losing Fats and Modern XMPP
Links for the day
Pursuing a Case With No Prospects (Because It's "Funny")
the perpetrators are taking a firm that's considered notorious
GNU/Linux in Honduras: From 0.28% to 6%
Honduras remains somewhat of a hotspot
Good News From Manchester and London, Plus High Productivity in Techrights
what has happened and what's coming
[Video] The 'Linux' Foundation Cannot be Repaired Anymore (It Sold Out)
We might need to accept that the Linux Foundation lost its way
Links 21/05/2024: Tesla Layoffs and Further Free Speech Perils Online
Links for the day
Gemini Links 21/05/2024: New Gemini Reader and Gemini Games
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, May 20, 2024
IRC logs for Monday, May 20, 2024
Red Hat Loves Microsoft Monopoly (and Proprietary Surveillance With Back Doors)
full posting history in RedHat.com
[Video] Just Let Julian Assange Go Back to Australia
Assange needs to be freed
The WWW declares the end of Google
Reprinted with permission from Cyber|Show
Gemini Links 20/05/2024: CMSs and Lua "Post to midnight.pub" Script Alternative
Links for the day
Windows Has Fallen Below 5% in Iraq, GNU/Linux Surged Beyond 7% Based on statCounter's Stats
Must be something going on!
Brodie Robertson - Never Criticise The Linux Foundation Expenses (With Transcript)
Transcript included
Links 20/05/2024: Protests and Aggression by Beijing
Links for the day
Can an election campaign succeed without social media accounts?
Reprinted with permission from Daniel Pocock
Read "Google Is Not What It Seems" by Julian Assange
In this extract from his new book When Google Met Wikileaks, WikiLeaks' publisher Julian Assange describes the special relationship between Google, Hillary Clinton and the State Department -- and what that means for the future of the internet
Fact check: relation to Julian Assange, founded Wikileaks at University of Melbourne and Arjen Kamphuis
Reprinted with permission from Daniel Pocock
Julian Assange: Factual Timeline From an Online Friend
a friend's account
Breaking News: Assange Wins Right to Challenge Extradition to the US
This is great news, but maybe the full legal text will reveal some caveat
Gambia: Windows Down to 5% Overall, 50% on Desktops/Laptops
Windows was measured at 94% in 2015
Links 20/05/2024: Microsoft Layoffs and Shutdowns, RTO as Silent Layoffs
Links for the day
The Issue With Junk Traffic in Geminispace (Gemini Protocol)
Some people have openly complained that their capsule was getting hammered by bot
Peter Eckersley, Laura Smyth & the rushed closure of dial-up Internet in Australian universities
Reprinted with permission from Daniel Pocock
Brittany Day, Plagiarist in Chief (Chatbot Slinger)
3 articles in the front page of LXer.com right now are chatbot spew
Guardian Digital, Inc (linuxsecurity.com) Has Resorted to Plagiarism by Chatbots, Flooding the World Wide Web With Fake 'Articles' Wrongly Attributed to Brittany Day
busted
[Meme] Bullying the Victims
IBM: crybully of the year 2024
Ian.Community Should be Safer From Trademark Censorship
We wish to discuss this matter very quickly
Microsoft and Its Vicious Attack Dogs (Attacking Women or Wives in Particular)
Sad, pathetic, destructive people
Upcoming Series About the Campaign to 'Disappear' the Father of GNU/Linux
Today we have Julian Assange's fate to focus on
A Month From Now Gemini Protocol Turns 5
June 20
Colombia: From Less Than 0.5% to Nearly 4% for GNU/Linux
it's not limited to this one country
Rumour: Well Overdue Red Hat Layoffs to be Announced in About 3 Days
we know they've planned the layoffs for a while
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, May 19, 2024
IRC logs for Sunday, May 19, 2024
Gemini Links 20/05/2024: Updated Noto Fontpacks and gemfeed2atom
Links for the day