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

In Central African Republic Windows Has Pretty Much Fallen to Zero
We need to focus on Software Freedom
Microsoft Windows Down to 8.5% in South Africa
South Africa and Egypt are strategic in Africa
New Series: A Deep Dive Into the Severe Corruption of the Open Source Initiative (OSI), Nowadays a Front Group and Lobbyist of Microsoft
There's a lot to show
Doing Free Software for a Living in an Era or a Time of Abundance of Code (and Fast Internet to Pass It Around Freely) or Writing When the Web is Attacked by LLM Slop
Tailoring code to needs is the key
The UEFI hype and Microsoft's lies
By Sami Tikkanen
 
Gemini Links 03/03/2025: Copyrights, GrapheneOS, and SpaceBeans
Links for the day
Links 03/03/2025: Europe Rallies Behind Ukraine, Measles Flourishes in US Again
Links for the day
After Fund-raising Campaign the Free Software Foundation Still Raises About $13,000 Per Week (Without Campaigning for New Donors/Members)
Richard Stallman in the Board is not a liability
Links 03/03/2025: 'Monetisation' Myth' and Microsoft's LLMs Helping Criminals
Links for the day
The New Series About the Open Source Initiative (OSI) and the Microsoft Entryism in OSI is Closely Related to the SLAPP Against Techrights
Also based on the leading publication that they want removed
Links 03/03/2025: Mass Layoffs in IBM China, Intel Still in Trouble
Links for the day
3 Out of 4 in Cuba Use Linux to Access the Web
Maybe change does come about...
Links 02/03/2025: Day Off, POWER9, Console Challenge
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 02, 2025
IRC logs for Sunday, March 02, 2025
Microsoft Windows Falls to All-Time Low in Thailand
We're seeing many all-time records like these so far in 2025
Gemini Links 02/03/2025: Snowdrop Flower and Hostile Leaders
Links for the day
Links 02/03/2025: Microsoft Outlook Goes Offline, Foreign-Owned Social Control Media Interfering With Fair Elections
Links for the day
According to statCounter, Windows Falls Off a Cliff in Maharlika, GNU/Linux Surges to 5%
But mobile is king
New Video Clip of Richard Stallman's Latest Visit to and Talks in Italy
Richard Stallman or RMS giving his latest talk last week
Windows Used by Only One in Six Asians to Access the Web, According to statCounter
maybe more governments in Asia should move away from Microsoft
GNU/Linux Reaches 5% in Brazil, an All-Time High According to statCounter
There are hundreds of millions of people in that country
Google Already Dominates the Global South (via Android/Linux)
If one puts aside Russia and east Europe, not many countries exist that still connect to the Web from Windows more than from Android
GNU/Linux Widespread in Finland, Sweden, and Norway
Sweden has many Chromebooks in schools3 nations
Germany's Incoming Leader Said He'd Seek More Independence from the US, GNU/Linux Soars to 6%
Last month it was 5%
For the First Time GNU/Linux is Measured at Over 4% in Europe (Not Counting ChromeOS/Chromebooks)
Europe, on average, is now estimated to have GNU/Linux on 1 in 25 Web-connected laptops/desktops
Over 2 Years of LLM Hype and Nothing to Show for It
People still use search, not chatbots
Apple's iOS Almost Bigger Than Windows Now (Internationally), Windows Falls to 22% According to statCounter
Without Windows domination, there's not much left going for Microsoft
Putin's Loyal DOGE
We hereby crown Arvind Krishna "Putin's DOGE"
The Media Barely Reported This (Late Friday): IBM Lays Off About 2,000 More Workers, Effective Hours Ago
Maybe some diversity programs can help IBM recruit slaves or grossly-underpaid staff
Microsoft Money Being Spent to Bully Techrights Only Legitimises Techrights
The longer it goes on for, the greater the Streisand Effect
Suing One's Way Out of Real Trouble Won't Work (It Merely Increases the Trouble)
"Guns for hire" in London can only issue "legal" threats
Microsoft Writing Articles About Microsoft, Using Microsoft LLMs
Right now there are many articles about Microsoft Outlook being down completely
Gemini Links 02/03/2025: OFFLFIRSOCH 2025 and Programming
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, March 01, 2025
IRC logs for Saturday, March 01, 2025
Another Day and Another LLM Slopfest From Madame Day at the Slopfarm LinuxSecurity.com
Can't take a break, can she?
Sucking Up to Fascists (Like IBM's Watson Sucked Up to Adolf Hitler in the 1930s) Did Not Help IBM
IBM could stick to better principles, but instead it treats the Free software community and even its own staff like trash
Links 01/03/2025: GB News Loses Over 100 Million Pounds, Zelensky Wins World's Sympathy
Links for the day
Getting Serial Sloppers to Knock the Habit of Plagiarism by LLM Slop
All in all, the fewer the slop objects, the better
As Prices Soar and Services Shut Down (Even YouTube Starts Demanding Money for the Original or a Tolerable Experience) It's Time to Explore the Real Alternatives
https://inv.nadeko.net is the most viable instance of Invidious these days
Gemini Links 01/03/2025: Amends and GNU/Linux
Links for the day
Links 01/03/2025: Scam Altman's Latest Excuse, Google Price Hikes
Links for the day
Justice Will Find Its Way at the End
We deserve an award, not SLAPP, for what we've done
March Already, Rumours of IBM Layoffs in Brazil
Red Hat might be impacted too
Links 01/03/2025: Squashing Software Patents, USPTO Facing Additional Cuts
Links for the day
Links 01/03/2025: UNM Gopher and Getting One's Pages on gemini://
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, February 28, 2025
IRC logs for Friday, February 28, 2025