Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

Business / Technology


Our network sites seattletimes.com | Advanced

Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times reporter Sharon Chan.

E-mail Sharon| RSS feeds Subscribe | Blog Home| Brier Dudley's Blog

May 29, 2008 3:10 PM

Microsoft acquisition Fast Search is subject of criminal probe in Norway

Posted by Benjamin J. Romano

Portfolio.com is reporting today on an escalating probe into account irregularities at Fast Search & Transfer, which Microsoft acquired for $1.2 billion.

Update, 4:55 p.m.: Microsoft is taking the matter seriously. See a statement added after the jump.

"Norway's financial supervisory authority, Kredittilsynet, said its review of Fast Search's previously disclosed accounting problems not only appeared to have violated accounting standards, they may have broken the law too," reports Portfolio.

The story continued:

"It referred Fast Search to investigators at Okokrim, the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime.


"Okokrim last week concurred that the nature of the irregularities and the amount by which Fast Search apparently inflated its accounts were serious matters warranting prosecution. But the agency said it was too busy to open a criminal investigation.


"Rather than let the matter rest, the market supervisor turned it over to the Oslo police for investigation. Aftenposten, a Norwegian newspaper, characterized Kredittilsynet's decision to involve the police as an unprecedented step in that country."

For more detail on what Microsoft hoped to gain by acquiring Fast Search & Transfer, a player in the enterprise search space, check out this story.

Microsoft's statement, added 4:55 p.m.:

Microsoft takes any matter of this nature very seriously, and we are fully committed to taking all appropriate actions to ensure consistency with the company's core values. Through publicly available information, we were aware of the review of FAST's historical accounting practices and their efforts to implement improved financial controls. Since completing our tender offer, we have taken several steps to align these efforts to Microsoft's high standards for financial reporting and controls. We remain absolutely confident in our decision to acquire FAST for its talent, technology and valued customer relationships.


Digg Digg | Newsvine Newsvine

Submit a comment

*Required Field



Type the characters you see in the picture above.

Posted by John Smith

7:05 AM, May 30, 2008

I would also suspect that Microsoft takes the whistleblower requirements under Sarbanes-Oxley very seriously. So I have to assume Microsoft is reporting any fraud they observed in their diligence to both the Norwegian authorities and the US authorities since the individuals are now Microsoft employees.

Posted by John Smith

7:08 AM, May 30, 2008

I would also suspect that Microsoft takes the whistleblower requirements under Sarbanes-Oxley very seriously. So I have to assume Microsoft is reporting any fraud they observed in their diligence to both the Norwegian authorities and the US authorities since the individuals are now Microsoft employees.

Recent entries

Jul 1, 08 - 11:45 AM
Microsoft buying natural-language search company Powerset

Jun 30, 08 - 05:16 PM
Report: Microsoft to cut Xbox 360 price ahead of big industry event

Jun 27, 08 - 03:52 PM
Gates send-off: Gates has had Ballmer's back from the beginning

Jun 27, 08 - 01:09 PM
Gates send-off: Photos

Jun 27, 08 - 11:48 AM
Gates send-off: Two guys and 90,000 employees

Advertising

Marketplace

Advertising

Advertising

Categories
Calendar

July

Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31    
Browse the archives

July 2008

June 2008

May 2008

April 2008

March 2008

February 2008

Bill Gates: His Legacy, His Future

Bill Gates

Bill Gates, who last week ended his full-time involvement with Microsoft, was often right. He made a career, a company and an industry by looking over the horizon.

From the tech blogosphere

More on Microsoft from the Seattle Times

Advertising

Buy a link here