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Sent by the SEC round the time Microsoft's CFO quit and was paid millions
to keep his mouth shut:
http://sec.gov/Archives/edgar/data/789019/000000000009070527/filename1.pdf
Malpractice? Here is Microsoft's response:
http://sec.gov/Archives/edgar/data/789019/000119312510032435/filename1.htm
Microsoft committed financial fraud before and got caught.
SEC and M$
,----[ Quote ]
| Then, in the last quarterly report, M$
| combined that other OS and âliveâ segments. I
| guess they thought a zigzag in the curve
| would hide something like the inflection in
| the client OS stuff. Further, internally,
| they use a different set of books, omitting
| some important details. So, investors should
| be comforted knowing that internal decisions
| are made on false assumptions. We have known
| for years that including the browser in the
| OS was done not for good business reasons but
| to exclude competition from the market. I
| guess that other search engine is more of the
| same.
`----
http://pogson.6k.ca/2010/04/17/sec-and-m/
Nation's soaring deficit calls for painful choices
,----[ Quote ]
| Bowles has been in touch with Microsoft's
| Steve Ballmer about creating a deficit-
| reduction video game that would enable anyone
| with a computer to take a stab at balancing
| the budget, much like the 1994 commission
| did.
|
| Updated for 2010, Kerrey says, such a game
| could "go viral."
`----
http://www.usatoday.com/news/washington/2010-04-12-deficit_N.htm
Steve Ballmer Tasked With Fixing The Deficit -- With A Video Game
,----[ Quote ]
| According to Bowles, the commission has
| contacted Microsoft's Steve Ballmer about
| Microsoft creating "a deficit-reduction video
| game" that would allow the average American
| to attempt balancing the budget. Details are
| scarce, but it would appear that the likely
| browser-based game would act to "virally"
| educate the public on how reducing the
| deficit isn't easy. In other words, it's a PR
| move designed to seemingly justify why we
| continue to fail -- instead of solving the
| problem. And here we were busily waiting for
| a Tea Party MMORPG, or Halo 4: Die Deficit
| Die.
`----
http://techdirt.com/articles/20100414/1228039013.shtml
Financial news, with special focus on Goldman Sachs (whose crimes are only coming to light more recently):
Text of SEC's complaint against Goldman Sachs
http://www.marketwatch.com/story/text-of-secs-complaint-against-goldman-sachs-2010-04-16
SEC Sues Goldman Sachs
http://www.ritholtz.com/blog/2010/04/sec-sues-goldman-sachs/
SEC Charges Goldman Sachs With Fraud On Subprime Mortgages
,----[ Quote ]
| The SEC has filed civil charges against
| Goldman Sachs and its banker Fabrice Tourre
| for its role in structuring subprime
| mortgages, which it structured at the behest
| of hedge funders like John Paulson.
`----
http://www.businessinsider.com/sec-charges-goldman-sachs-with-fraud-on-subprime-mortgages-2010-4
Burns Discusses SEC Fraud Lawsuit Against Goldman Sachs: Video
http://www.bullfax.com/?q=node-burns-discusses-sec-fraud-lawsuit-against-goldman-sachs
SEC Sues Goldman Sachs; US âShocked, Shocked,â to Find Wall Street Fraud
http://seminal.firedoglake.com/diary/41463
Goldman Sachs Fraud
,----[ Quote ]
| Finally the chickens are coming home to roost
| on the greatest short scam of the last
| decade.
`----
http://tpmcafe.talkingpointsmemo.com/2010/04/16/goldman_sachs_fraud/
Goldman Sachs case shows need for reform - Lincoln
,----[ Quote ]
| Fraud charges filed against Goldman Sachs
| Group Inc (GS.N) further illustrate the need
| for strong financial reform, Chairman Blanche
| Lincoln said on Friday.
`----
http://www.reuters.com/article/idUSWNA854220100416
Goldman Sachs Executives Should Resign, Bove Says
,----[ Quote ]
| Goldman Sachs Group Inc. Chief Executive
| Officer Lloyd Blankfein and finance chief
| David Viniar should resign over fraud
| allegations, according to Dick Bove, an
| analyst at Rochdale Securities.
`----
http://www.businessweek.com/news/2010-04-16/goldman-sachs-chiefs-should-fall-on-their-swords-bove-says.html
Goldman Sachsâs âFabulous Fabâ Loses âSurvivorâ Bet
http://www.businessweek.com/news/2010-04-16/goldman-sachs-s-fabulous-fab-loses-bet-he-s-sole-survivor-.html
Goldman Sachs CDOs a âConcernâ for Crisis Panel, Angelides Says
http://www.businessweek.com/news/2010-04-16/goldman-sachs-cdos-a-concern-for-crisis-panel-angelides-says.html
Gold Drops Most in Two Months as SEC Sues Goldman, Dollar Gains
http://www.businessweek.com/news/2010-04-16/goldman-falls-the-most-in-a-year-pushing-banks-lower-update1-.html
Gasoline Declines Most in Seven Weeks After U.S. Sues Goldman
http://www.businessweek.com/news/2010-04-16/gasoline-loses-more-than-3-as-goldman-sued-by-sec-stocks-fall.html
Copper Prices Tumble as SEC Sues Goldman Sachs, Dollar Climbs
http://www.businessweek.com/news/2010-04-16/copper-prices-tumble-as-sec-sues-goldman-sachs-dollar-climbs.html
Cotton, Orange-Juice Drop as Stocks Fall After SEC Sues Goldman
http://www.businessweek.com/news/2010-04-16/cotton-orange-juice-drop-as-stocks-fall-after-sec-sues-goldman.html
Raw Sugar Tumbles 5.3% as Commodities Drop on SEC-Goldman Case
http://www.businessweek.com/news/2010-04-16/raw-sugar-drops-to-one-week-low-as-goldman-suit-may-curb-trade.html
Stocks, Oil Drop as Dollar Gains After SEC Sues Goldman Sachs
http://www.bloomberg.com/apps/news?pid=20601087&sid=aO99tKmudkDI&pos=2
Gold, Commodities Fall on Goldman Sachs Fraud Case
http://www.businessweek.com/news/2010-04-16/commodities-head-for-biggest-drop-in-seven-weeks-on-goldman-case.html
Financial Shares Tumble After Goldman Sachs Charged With Fraud
http://www.businessweek.com/news/2010-04-16/financial-shares-tumble-after-goldman-sachs-charged-with-fraud.html
Stocks in U.S. Retreat After Goldman Sachs Fraud Lawsuit, Google Earnings
http://industry-news.org/2010/04/16/stocks-in-u-s-retreat-after-goldman-sachs-fraud-lawsuit-google-earnings/
European Stocks Sink, Erasing Weekly Gain, as SEC Sues Goldman
http://www.businessweek.com/news/2010-04-16/european-u-s-stock-index-futures-fall-asian-shares-decline.html
Deutsche Bank Drops in Frankfurt After SEC Sues Goldman Sachs
http://www.businessweek.com/news/2010-04-16/deutsche-bank-drops-in-frankfurt-after-sec-sues-goldman-sachs.html
DAX Index Drops After SEC Charges Goldman Sachs; Banks Retreat
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/04/15/bloomberg1376-L0Z6F60YHQ0X-1.DTL
Swiss Stocks Slide as SEC Charges Goldman Sachs; Banks Decline
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/04/15/bloomberg1376-L0Z98N1A74E9-1.DTL
Argentina's Stock Market Continues Slide On Goldman Fallout
http://online.wsj.com/article/BT-CO-20100416-710363.html?mod=WSJ_latestheadlines
Brazil Stocks Fall Most in Two Months on China Concern, Goldman
http://www.businessweek.com/news/2010-04-16/brazil-stocks-fall-most-in-two-months-on-china-concern-goldman.html
Mexico peso down as Goldman news hits risky assets
http://www.reuters.com/article/idUSN1613205220100416
Yen Rises as U.S. Stocks Drop on Goldman Sachs Fraud Charge
http://www.businessweek.com/news/2010-04-16/yen-dollar-rise-as-china-acts-to-cool-growth-deterring-risk.html
Goldman Sachs Credit Swaps Jump Most Since 2008 After SEC Suit
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/04/15/bloomberg1376-L0ZEMB1A1I4H-1.DTL
Goldman Sachs SEC Suit âScandalous Story,â Economist Stein Says
,----[ Quote ]
| âIf the facts are as the SEC allege, they
| were selling an extremely dangerous product
| to innocent buyers who trusted the good name
| of Goldman Sachs,â Stein said in the
| interview.
`----
http://www.businessweek.com/news/2010-04-16/goldman-sachs-sec-suit-scandalous-story-economist-stein-says.html
Abacus Allowed Goldman to Shuffle Mortgage Risk Like Beads
,----[ Quote ]
| From July 2004 through April 2007, as credit
| markets boomed, Goldman Sachs Group Inc.
| created 23 financial transactions called
| Abacus, the word for a relatively crude
| counting tool involving the shuffling of
| beads.
`----
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/04/16/bloomberg1376-L0ZTPC0UQVI9-1.DTL
Buffettâs Goldman Sachs Warrants Drop by $1 Billion (Update2)
,----[ Quote ]
| The value of Warren Buffettâs options to buy
| Goldman Sachs Group Inc. shares dropped by
| $1.02 billion after regulators sued the bank
| for misleading clients on the sale of
| securities tied to the subprime mortgage
| market.
`----
http://www.bloombrg.com/apps/news?pid=20601087&sid=asEkRC.Lt5G4&pos=4
Goldman Sachs case likely to increase calls for Wall Street reform
,----[ Quote ]
| Reporting from Washington and New York
| Goldman Sachs Group Inc. was once a darling
| in Washington, handing out millions of
| dollars in campaign contributions and
| supplying so many executives for key federal
| positions -- including two recent Treasury
| secretaries -- that some people called the
| firm "Government Sachs."
`----
http://www.latimes.com/business/la-fi-goldman-politics17-2010apr17,0,4264607.story
Goldman Sachs' Revolving Door
,----[ Quote ]
| A CBS News analysis of the revolving door
| between Goldman and government reveals at
| least four dozen former employees, lobbyists
| or advisers at the highest reaches of power
| both in Washington and around the world.
`----
http://www.cbsnews.com/8301-31727_162-20001981-10391695.html
Goldman Sachs: No apologies
,----[ Quote ]
| The letter, co-signed by CEO Lloyd Blankfein
| and President Gary Cohn, also mentioned that
| Goldman repaid its $10 billion debt to the
| government in June 2009, as a U.S. Treasury
| recipient of the Troubled Asset Relief
| Program.
`----
http://ac360.blogs.cnn.com/2010/04/16/goldman-sachs-no-apologies/
Recent:
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).
`----
http://www.reuters.com/article/smallBusinessNews/idUSTRE58S5U820090929
Related:
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
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.
`----
http://www.businessweek.com/ap/financialnews/D939RL7O0.htm
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.
`----
http://www.law.com/jsp/article.jsp?id=1202424479239
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.''
`----
http://query.nytimes.com/gst/fullpage.html?res=9A03E1DC173DF932A35754C0A96F958260
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).
`----
http://www.kuro5hin.org/story/2002/8/20/11034/3908
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.
`----
http://www.crn.com/it-channel/18819490
"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.
`----
http://www.msboycott.com/news/98_06_22.shtml
SEC Investigating Microsoft Practices -- Earnings Manipulated, Former Employee
Contends
,----[ 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.
`----
http://community.seattletimes.nwsource.com/archive/?date=19990701&slug=2969514
Microfraud?
,----[ 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.
`----
http://web.archive.org/web/20070308032343rn_2/www.seattleweekly.com/1999-01-06/news/microfraud.php
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.
`----
http://money.cnn.com/news/newsfeeds/articles/djf500/200710041610DOWJONESDJONLINE000810_FORTUNE5.htm
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."
`----
http://www.forbes.com/feeds/ap/2007/07/26/ap3957835.html
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."
`----
http://arstechnica.com/journals/thumbs.ars/2007/08/14/microsoft-exec-dumped-stocks-prior-to-red-ring-addresment
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.
`----
http://www.marketwatch.com/news/story/microsofts-bach-sold-additional-stock/story.aspx?guid=%7BBECA3A50-EF33-4161-A111-A43BDC8B0462%7D&siteid=yhoof
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.
`----
http://biz.yahoo.com/seekingalpha/070713/40947_id.html?.v=1
[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.
`----
http://blog.mandriva.com/2007/10/31/an-open-letter-to-steve-ballmer/
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