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[News] [Rival] Microsoft Employee Blows the Whistle on Microsoft Misconduct/Crime, Microsoft Fires Him and Sends Workforce to India

  • Subject: [News] [Rival] Microsoft Employee Blows the Whistle on Microsoft Misconduct/Crime, Microsoft Fires Him and Sends Workforce to India
  • From: Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx>
  • Date: Sun, 21 Feb 2010 10:03:02 +0000
  • Followup-to: comp.os.linux.advocacy
  • Newsgroups: comp.os.linux.advocacy
  • User-agent: KNode/4.3.1
Hash: SHA1

Fired Worker Calls Microsoft 'a Lawless Place'

,----[ Quote ]
| Calling Microsoft "a lawless place," a 
| longtime worker claims in a class action that 
| he was fired in retaliation for reporting 
| supervisors' misconduct. He claims the company 
| "routinely produces and/or condones deficient 
| investigations, covers up alleged misconduct, 
| mischaracterizes evidence, refuses to preserve 
| or provide pertinent facts and data, protects 
| the perpetrators and retaliates against 
| victims."
| Craig Bartholomew worked for Microsoft for 21 
| years, he says in his complaint in King County 
| Court. He says he was fired after complaining 
| that his supervisors had created a 
| "dysfunctional environment that was harming 
| Microsoft and risking certain of its programs 
| and objectives."
| "Microsoft has twice tried to cover up what 
| really happened, first wrongly claiming his 
| termination was a layoff or RIF. Neither was 
| or is true," according to the complaint.
| According to his complaint: "Microsoft can be 
| a lawless place. Courts have found that its 
| key executives have violated the law and/or 
| sought to circumvent court rulings. Powerful 
| employees, because of their perceived value to 
| the company, has (sic) been protected. 
| Employees who have reported misconduct by 
| senior management have been punished or fired 
| based on trumped-up charges.


Microsoft Outsources Legal Work to India With CPA Global Deal

,----[ Quote ]
| Microsoft Corp. has entered into an agreement 
| with legal outsourcing provider CPA Global to 
| offshore legal work to lawyers in India.
| The technology giant began a pilot scheme with 
| CPA in October and formally rolled it out at 
| the end of 2009. A team of between three and 
| five qualified lawyers at CPA are handling 
| multi-jurisdictional legal support work, 
| including legal research, for Microsoft. The 
| lawyers are based in CPA's offices in Gurgaon, 
| near New Delhi.
| Microsoft has been outsourcing basic 
| intellectual property and patent renewal work 
| to CPA for five years, using a team of around 
| 70 CPA staff. However, the new arrangement for 
| general legal work operates separately.


Microsoft to outsource general legal work to India

,----[ Quote ]
| Software giant Microsoft will begin 
| outsourcing general legal work to India after 
| signing a deal with legal process outsourcing 
| (LPO) company CPA Global. The news comes as 
| CPA outlined plans to expand its Indian 
| workforce from 600 to 1,000 by the end of 
| 2011, and hinted at opening another 
| outsourcing centre.


"Government attorneys accuse Microsoft of using its monopoly 
position to bully, bribe and attempt to collude with others in the
 industry, while illegally expanding and protecting its Windows franchise."

	--The antitrust case: a timeline


EIM: We refused Microsoft's orgies and paid for it

,----[ Quote ]
| Relations between EIM Computerized
| Technologies Ltd. and Microsoft Corporation
| (Nasdaq: MSFT) have always been sensitive,
| but EIM's statement of defense in a lawsuit
| against the software giant sets a new
| standard.
| EIM, was one of Microsoft's largest
| distributors in Israel until mid-2005, when
| their contract expired. In the statement of
| defense filed with the Tel Aviv District
| Court, EIM claims that its relations with
| Microsoft broke down because EIM's
| employees refused to participate in sex and
| drug orgies on a cruise organized by
| Microsoft in May 2005 for its Israeli and
| Turkish distributors.
| EIM alleges, "For the pleasure cruise,
| Microsoft, or people on its behalf, invited
| women who provided sexual services for
| money. During this cruise, the Microsoft
| representative encouraged the participants
| in the cruise to party with these women,
| including receiving said services. They
| were also offered banned substances."


Microsoft 'offered sex and drugs to distributors'

,----[ Quote ]
| As sales incentives go it's pretty extreme:
| one of Microsoft's Israeli distributors is
| claiming Microsoft offered resellers women
| for sex on a cruise ship.
| The distributor, EIM Computerized
| Technologies, made the revelations about
| the alleged activities in papers filed with
| the Tel Aviv District Court.


SEC charges tech firm with $20 million fraud

,----[ Quote ]
| U.S. securities regulators charged virtual reality company 3001 AD
| on Tuesday with bilking $20 million from investors by fabricating
| plans for an initial public offering and falsely claiming support
| from tech giants Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O).



Ex-Microsoft boss sentenced


Former Microsoft Manager Gets 2 Years In Jail


SEC bans short-selling of 799 financial stocks

,----[ Quote ]
| Short selling involves borrowing a company's shares, selling them, and
| pocketing the difference when the stock falls. It is a legitimate method of
| trading -- it can make markets more efficient and bring in more capital --
| but the government argues that it has widened the scope of the recent
| financial crisis and contributed to the collapsing values of investment and
| commercial bank stocks in particular.


SEC Foresees Rise in Fraud Cases

,----[ Quote ]
| Laying out his priorities, the new enforcement chief for the Securities and
| Exchange Commission in San Francisco said Thursday he expects an upswing in
| fraud cases against public companies.


Microsoft's Accounting Under Scrutiny

,----[ Quote ]
| 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.''


Microsoft - Undeserving of Libertarian Praise

,----[ Quote ]
| 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).


Microsoft Agrees To Refrain From Accounting Violations in SEC Settlement

,----[ Quote ]
| 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.


"Microsoft Tax," MSN Enters the Black Hole, New Names for NT

,----[ Quote ]
| 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.


SEC Investigating Microsoft Practices -- Earnings Manipulated, Former Employee

,----[  Quote]
| "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.



,----[ 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,
| Pancerzewskiâwho for nearly five years had received stellar performance
| evaluationsâreceived 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.


Ecuador Tax Agency Closes Microsoft Branch Offices For 7 Days

,----[ Quote ]
| "We have twice requested balances, payment reports and complete tax
| information, but the company hasn't given it to us, so in accordance with our
| laws we have proceeded with the closure," the SRI official in charge of the
| proceeding said.


Microsoft Office raid in Hungary

,----[ Quote ]
| "Such behavior could lead to the exclusion of competitive products from
| the market and violate European Union rules, according to the authority
| known as the GVH."


Microsoft exec dumped stock prior to Red Ring announcement

,----[ Quote ]
| To make matters more murky, the sales were not registered with the Securities
| and Exchange Commission within the mandatory two days of the transaction, a
| result of an alleged "administrative error." Microsoft has since remedied the
| issue by following the "procedures required of late-filers."


Microsoft's Bach sold more stock before Xbox news

,----[ Quote ]
| Microsoft Corp. executive Robbie Bach sold $3 million more in company stock
| during the period leading up to an announcement about a costly flaw in its
| Xbox video game console than previously reported, according to a filing
| Monday with the Securities and Exchange Commission.


Insider Trading Hasn't Affect Microsoft Stock - Yet

,----[ Quote ]
| MarketWatch.com reports that Robbie Bach, president of Microsoft's
| Entertainment and Devices division, sold $6.2 million of Microsoft
| stock just prior to announcing that Microsoft was going to have to
| extend XBox 360 warranties to three years because of extensive
| failures. The filings note that this was not part of any
| scheduled diversification or selling program; this was a
| conscious, unscheduled sale by the guy in charge of releasing
| news that could affect the value of Microsoft stock.
| [...]
| Insider trading is a very serious violation of the law; just
| ask Martha Stewart, who served five months in prison for
| avoiding losses of $43,000 through trades that just had suspicious
| timing (no insider trading was actually proven). This is $6.3
| million that went straight into Robbie Bach's pocket.


[Mandriva CEO:] An open letter to Steve Ballmer

,----[ Quote ]
| Wow! Iâm impressed, Steve! What have you done for these guys to change their
| mind like this? Itâs pretty clear to me, and it will be clear to everyone.
| How do you call what you just did Steve, in the place where you live? In my
| place, they give it various names, Iâm sure you know them.
| Hey Steve, how do you feel looking at yourself in the mirror in the morning?
| Of course, I will keep fighting this one and the next one, and the next one.
| You have the money, the power, and maybe we have a different sense of ethics
| you and I, but I believe that hard work, good technology and ethics can win
| too.

Version: GnuPG v1.4.9 (GNU/Linux)


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