Home Messages Index
[Date Prev][Date Next][Thread Prev][Thread Next]
Author IndexDate IndexThread Index

[News] Fraud Alleged in BlackBerry (Linux Competitor)

Hash: SHA1

RIM execs settle with SEC over backdated options

,----[ Quote ]
| The Securities and Exchange Commission is charging four executives at 
| Research In Motion - the firm behind the BlackBerry - with offences related 
| to the backdating of share options.  
| The SEC alleges RIM's CFO Dennis Kavelman, former VP of Finance Angelo 
| Loberto, and Co-Chief Executive Officers James Balsillie and Mike Lazaridis 
| illegally backdated share options between 1998 and 2006.  


Share shenanigans cost RIM $1.4 million

,----[ Quote ]
| BLACKBERRY MAKER RIM has been ordered to cough up $1.4 million after the 
| Security and Exchange Commission (SEC) had a look through its books and found 
| some dodgy dealings relating to stock issuws.  


They should pay close attention to Microsoft too.



,----[ Quote ]
| 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.

Version: GnuPG v1.4.9 (GNU/Linux)


[Date Prev][Date Next][Thread Prev][Thread Next]
Author IndexDate IndexThread Index