07.24.09

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SCO Scandals Finally in the News

Posted in GNU/Linux, IBM, Kernel, SCO at 3:27 am by Dr. Roy Schestowitz

Summary: Darl McBride and Steven Norris allegedly in the midst of a scandal

IN THE following previous posts, we remarked on the fact that almost no-one but Groklaw was prepared to cover very major developments.

For those who are not following the case very closely, Heise now offers some concise coverage of what SCO is claimed to have been up to.

An objection from IBM lodged with the bankruptcy court has opened up a surprise new front in the SCO Group liquidation hearing. According to IBM lawyers, in 2008 SCO boss Darl McBride made personal payments to Steven Norris via an intermediary, for searching for further investors willing to invest in SCO. Money was also paid by SCO’s German subsidiary SCO Deutschland, with which Norris is reported to have signed a consulting contract. The role played by Norris, who recently promised to rescue SCO through an investment group by the name of Gulf Capital, is therefore set to become a key point in this interminable saga.

From Groklaw

IBM’s Smoking Objection to SCO’s Motion to Sell Outside the Ordinary Course of Business

[...]

Worse, for SCO, is that IBM is not yet done with discovery. Remember when we were trying to figure out SCO’s finances, comparing the MORs with the SEC filings, and we couldn’t get the subsidiaries’ money to add up? Read on and light bulbs will go on in your head.

Here’s an explanation of bankruptcy fraud, and here’s the DOJ’s page of resources on the topic. Here’s the page that explains what kinds of things the law categorizes as fraud. Because I know that is the next thing you will be asking me to explain.

The big hearing is just a couple of days away, so there will be a lot more press coverage very soon. █

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