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Former software execs charged with wire fraud
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| Two former top executives from Seattle software provider Entellium were
| arrested on Tuesday night after allegedly inflating their company's revenues
| to attract investments.
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http://news.cnet.com/8301-13578_3-10062570-38.html?part=rss&subj=news&tag=2547-1_3-0-20
"inflating their company's revenues to attract investments"? Sounds like
another company from that area.
Related:
Microsoft Fraud Facts
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| Sadly, many of these brilliant people have been blinded by the stock
| price and unable to see that Microsoft is also the key architect of
| the greatest financial pyramid scheme this century.
|
| It is not uncommon for participants in pyramid schemes to lose their
| emotional bearings. My close friends who work at Microsoft are
| particularly upset over my work and it is possible that even Bill
| Gates and Steve Ballmer do not realize the implications of their
| financial practices.
`----
http://www.billparish.com/msftfraudfacts.html
The Billparish.com Report: Understanding Microsoft’s Circles of Influence,
Enron's Collapse and a Brilliant Financial Pyramid Scheme
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| Microsoft has clearly entered a phase of self destructive behavior
| that began with the "tissue paper campaign" in 1995. This report will
| document this campaign for the first time.
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http://web.archive.org/web/20030418133622/http://www.reactor-core.org/microsoft-pyramid.html
Microfraud?
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| THE ALLEGATIONS WERE shocking: For years, Microsoft has systematically
| distorted its profit figures in an effort to consistently beat Wall Street
| expectations and keep its stock price steadily rising. The false reports
| would violate SEC regulations, and amount to outright fraud.
|
| More shocking was the source of the allegations: Microsoft's chief of
| internal audits, Charlie Pancerzewski, who reported directly to the company's
| chief financial officer.
|
| Most shocking of all was what happened to Pancerzewski when he reported the
| suspicious bookkeeping to his supervisors, Microsoft CFO Mike Brown and chief
| operating officer Bob Herbold, in the spring of 1995. Soon afterward,
| Pancerzewski—who for nearly five years had received stellar performance
| evaluations—received his first-ever unsatisfactory one, and was eventually
| forced to resign.
|
| Two months ago, Microsoft quietly settled a lawsuit containing these
| allegations, filed in 1997 by Pancerzewski under the Whistleblowers
| Protection Act. The auditor claimed he was wrongfully terminated after
| telling his supervisors that Microsoft might be breaking securities and tax
| laws. The lawsuit made its tortuous way through several rounds of pretrial
| motions until last fall, when US District Judge Carolyn Dimmick denied
| Microsoft's final plea for summary judgment, finding credible evidence that
| Microsoft may have violated SEC rules, as Pancerzewski alleged. Shortly
| thereafter, Microsoft and Pancerzewski settled out of court. Terms of the
| agreement were sealed, but one source who claims familiarity with the case
| says that Microsoft paid Pancerzewski $4 million.
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http://web.archive.org/web/20070308032343rn_2/www.seattleweekly.com/1999-01-06/news/microfraud.php
Microsoft's Accounting Under Scrutiny
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| The company has still not made enough information public to provide analysts
| with detailed information on the profitability of its MSN Internet business,
| Mr. Galvin said, adding, ''There's still room for them to obfuscate.''
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http://query.nytimes.com/gst/fullpage.html?res=9A03E1DC173DF932A35754C0A96F958260
Microsoft - Undeserving of Libertarian Praise
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| 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). Mr. Pancerzewski claims he was forced to retire,
| for raising the issue of deferred earnings with Microsoft executives, thereby
| making plausible deniability more difficult for said executives. He has since
| sued Microsoft, who responded by settling out of court, but also sealing the
| records to prevent public disclosure (Fink).
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http://www.kuro5hin.org/story/2002/8/20/11034/3908
Microsoft Agrees To Refrain From Accounting Violations in SEC Settlement
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| Microsoft has agreed to refrain from accounting violations to settle federal
| regulators' allegations that it misrepresented its financial performance, the
| government announced Monday.
|
| Under a settlement with the Securities and Exchange Commission, the software
| giant neither admitted to nor denied wrongdoing. No fine was imposed.
|
| The SEC alleged that Microsoft's accounting practices from July 1994 through
| June 1998 caused its income to be substantially misstated.
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http://www.crn.com/it-channel/18819490
"Microsoft Tax," MSN Enters the Black Hole, New Names for NT
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| The lawsuit, filed last year by Mukilteo City Councilman Charles
| Pancerzewski, alleges that he was forced to resign as Microsoft's general
| auditor in January 1996 after working for the company's internal auditing
| department for more than four years. The suit claims that a "significantly
| younger man" with little auditing experience was picked to replace
| Pancerzewski, who was finally forced out because he discovered Microsoft
| might have been violating government regulations. Once Pancerzewski left the
| company he was replaced by the younger man, who his attorneys believe
| was "less prone to raise issues of possible legal improprieties which could
| threaten or embarrass Microsoft or its management.
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http://www.msboycott.com/news/98_06_22.shtml
SEC Investigating Microsoft Practices -- Earnings Manipulated, Former Employee
Contends
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| "The CFO to whom Charlie was reporting his concerns about illegality was the
| biggest advocate for the very illegality that was going on," Vial argued in
| court a year ago.
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http://community.seattletimes.nwsource.com/archive/?date=19990701&slug=2969514
Recent (2008):
Ex-Microsoft boss sentenced
http://seattlepi.nwsource.com/business/371393_msftcourt19.html
Former Microsoft Manager Gets 2 Years In Jail
http://news.portalit.net/fullnews_former-microsoft-manager-gets-2-years-in-jail_1427.html
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