Microsoft to drop back on spending growth

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Probes of Backdating

The statute of limitations on Microsoft misdated options may be expiring.

http://news.zdnet.com/2100-3513_22-1024694.html and today's (feb 16 2007 WSJ - page A13) explain how Microsoft management (IE Ballmer and Gates) might have restated earnings as a mechanism of starting a clock which if run long enough gets them personally off the hook.

It's five years for securities fraud and wire fraud. There is some flexibility based on the notion that misdated options might affect earnings in later years. Depending on the dates in the URL, one might pick 2002 as a date and hence a statute of limitations on securities and wire fraud involving Microsoft of 2007.

Unlike other backdating cases, the government has no problem in arguing that executives at Microsoft knew they were engaged in wrongful conduct. IMO, their accounting firm has so documented this and if we have learned from the Broadcom case there likly are emails and the jealous who did not get the options. It maters not if Ballmer or Gates or other officers benefit. All officers are responsible for the climate of fraud which was so easy to pull off given the gyrating stock prices in our industry between 1998 and 2003.

Frank L. Mighetto CCP

so many who followed Microsoft with backdating because that was needed to keep talent in an industry corrupted by the Microsoft/Abramoff way are going down. Will the criminal innovators (Gates and Ballmer) be allowed to escape justice?

Posted by: mighetto   Posted on: 02/16/07 You are currently: a Guest | Members login | Terms of Use

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