Beta

Slashdot: News for Nerds

×

Welcome to the Slashdot Beta site -- learn more here. Use the link in the footer or click here to return to the Classic version of Slashdot.

Thank you!

Before you choose to head back to the Classic look of the site, we'd appreciate it if you share your thoughts on the Beta; your feedback is what drives our ongoing development.

Beta is different and we value you taking the time to try it out. Please take a look at the changes we've made in Beta and  learn more about it. Thanks for reading, and for making the site better!

Judge Approves $100 Million Dell Settlement

samzenpus posted more than 3 years ago | from the pay-up dept.

Government 72

crimeandpunishment writes "It's official. Dell will pay the US government $100 million to settle fraud charges. CEO Michael Dell will personally pay a $4 million fine. A federal judge approved the settlement after Michael Dell assured him the company will deliver on the reforms it promised. Dell was accused of pumping up its profits over five years by improperly using payments from Intel, in order to meet Wall Street targets."

cancel ×

72 comments

Oh Dell (1)

Pojut (1027544) | more than 3 years ago | (#33891932)

There was a time when your name was synonymous with inexpensive but decent computers. However, the last truly decent computers you released were the Dell Mini 9/10v...you're just not the Dell I used to know. Your monitors still kick quite a lot of ass, but your computers are more or less worthless at this point.

"Dude, you're getting a Dell." "Crap."

Re:Oh Dell (1)

foniksonik (573572) | more than 3 years ago | (#33891954)

That's what happens when you race to the bottom while maintaining appearances with off the books income. It's also very hard to compete with a company subsidized to the extent Dell was.

Re:Oh Dell (0)

Anonymous Coward | more than 3 years ago | (#33905084)


During years, up to 68% of DELL's revenues came from Intel:

- that's $40 billion PER YEAR!

And the DoJ settles for $100 million.

Call this "Justice" if you want... but any of you involved in a $400,000 fraud would have had to pay a MULTIPLE of that amount -not $1,000 (400 times less, like DELL).

Re:Oh Dell (1, Insightful)

Anonymous Coward | more than 3 years ago | (#33891974)

Many PC assemblers/distributors don't have much of a choice these days. Unless you're buying very, very high-end hardware, it's damn near impossible to get any decent-quality computer hardware that's manufactured in the US or Europe.

Most consumer-grade computer hardware comes from Asia these days, and even then it's not from the more capable nations like Japan, South Korea or Taiwan.

Even the largest assemblers/distributors are stuck buying what's essentially "dollar store" electronics. Of course, this ends up becoming very obviously when systems often don't even work out-of-the-box, or develop serious flaws soon afterwards, even when under minimal use.

Re:Oh Dell (0)

Anonymous Coward | more than 3 years ago | (#33891996)

Serious flaws? One motherboard in the time of the bad capacitors was codenamed Vesuvius for a reason ;-) Don't forget retro mode [zdnet.com] that enabled you to relive your past of 100Mhz on Windows XP.

Still plagued by bad capacitors (2, Informative)

suso (153703) | more than 3 years ago | (#33892052)

I wouldn't say the time of bad capacitors is over. I've still run into and heard about recent cases.

I think more people should know about the whole story and you can read it at http://www.badcaps.net [badcaps.net]

Re:Oh Dell (1)

fuzzyfuzzyfungus (1223518) | more than 3 years ago | (#33892076)

Just to note: The model mentioned in the above article, the Latitude E6400, has a reputation for legendary suckage even in otherwise pretty satisfied dell shops. It is also on its 27th publicly released BIOS revision(released in the last week or so). Given that it is pretty much straight Intel silicon(unless you went with the Nvidia graphics option), I have no idea what could have gone so badly wrong with the design. The chassis is actually pretty nice; but the board Just Ain't Right, as they say.

Re:Oh Dell (1)

CajunArson (465943) | more than 3 years ago | (#33892178)

I have a long history of Dell hatred, but I will say that my 2707WFP monitor works extremely well and has a build quality that beats most things I've seen from Apple recently. Dell, like many large companies, is a sort of Jekyll and Hyde beast where some parts are evil/crappy/incompetent, while other parts are actually pretty good. The problem is that the negatives usually outweigh the positives in the public opinion. Case in point: Here at the office we just ordered a bunch of HP's to replace the 7+ year old Dells. What is ironic is that the Dells we have are actually quite reliable even though they are all ancient, but HP got the nod for the new machines nonetheless based on Dell's reputation.

Re:Oh Dell (1)

Pojut (1027544) | more than 3 years ago | (#33892216)

Agreed about the monitor thing (which I included in my OP.) Their monitors have long been a standard in the consumer space...it's difficult to beat their quality vs. price.

Re:Oh Dell (1)

jhoegl (638955) | more than 3 years ago | (#33893154)

You mean their Rebranded monitors, correct?

Fact is, the only thing that is good about Dell is not put together by them.

Re:Oh Dell (2, Interesting)

compro01 (777531) | more than 3 years ago | (#33896674)

The reason why Dell's monitors are good is because they aren't made by Dell. Your monitor was actually made by Samsung. They also rebrand BenQ and LG monitors.

Re:Oh Dell (1)

drsmithy (35869) | more than 3 years ago | (#33900170)

I have a long history of Dell hatred, but I will say that my 2707WFP monitor works extremely well and has a build quality that beats most things I've seen from Apple recently. Dell, like many large companies, is a sort of Jekyll and Hyde beast where some parts are evil/crappy/incompetent, while other parts are actually pretty good.

As with most things, it's usually a simple matter of getting what you pay for.

Buy some bottom-end, crap machine like an Inspiron ? Likely it's going to give you trouble. Spend more on a Latitude latop, Precision desktop, or Ultrasharp-series LCD ? Chances are high it'll be rock solid.

Re:Oh Dell (1)

chrb (1083577) | more than 3 years ago | (#33892486)

There was a time when your name was synonymous with inexpensive but decent computers.

Do you have any evidence that this isn't still the case, personal experiences aside? I've worked in several large enterprises, with thousands of desktops, that standardised on Dell hardware. Dell was cheaper than the competition and the problems were no greater than their competitor brands (HP, Acer, Lenovo, Toshiba). Plus Dell is so ubiquitous that hardware and driver problems are usually already solved by someone, somewhere in the world. I doubt that Dell has any huge QA problem when compared to HP/Acer/Lenovo/Toshiba, or is significantly more expensive, but let's see the evidence?

DellHP (1)

Anonymous Coward | more than 3 years ago | (#33891956)

Dell>>>>>HP
Period

Re:DellHP (1)

jhoegl (638955) | more than 3 years ago | (#33893256)

THe internet laughs at you.

At all of the companies I have worked for, i came into a Dell shop and converted them. How do you ask?
TCO... The total cost of ownership of one downed system costs ~$300/each, and when Dell has a trackrecord of failing systems it quickly adds up.
TCO includes IT time in swap/repair and lost productivity (20 minutes adds up when the user is a hard worker).
So enjoy your Dell, you will be working hard to keep them up and running.

Re:DellHP (1)

Swanktastic (109747) | more than 3 years ago | (#33897016)

http://www.electronista.com/articles/09/11/17/reliability.study.has.apple.4th.place/ [electronista.com]

This study put 3 year failure rates of HP at 26%, and Dell at 18%...

While I agree with the TCO point in general, what data did you use to show that Dells are less reliable than HP?

Re:DellHP (1)

jhoegl (638955) | more than 3 years ago | (#33901324)

What is actually happening at each site. There is a series of Dells we purchased that have had a high failure rate within a year of purchasing. Most of them HD related.

Re:DellHP (1)

Swanktastic (109747) | more than 3 years ago | (#33901758)

Sounds reasonable- I was more asking out of curiousity to make better decisions in the future.

Why the government? (4, Insightful)

Pikoro (844299) | more than 3 years ago | (#33891964)

What I want to know is why is the government the one that always gets these settlements? Why not refund it back to the consumers or use it to subsidize the next year of computers that they ship out?

I know it's a fine, but still, in the end, it's always the consumers that lose.

Re:Why the government? (5, Informative)

Anonymous Coward | more than 3 years ago | (#33892034)

They were charged with fraud for improperly making their company look like it was in better health than it really was. The people "harmed" were the investors. If you want to give it to the people impacted almost all of it will go to large institutional investors who held on to their stocks thinking that the company was hitting its targets. Very few consumers would see a nickel of that money. Besides this is a slap on the wrist for Dell. Their bigger impact has been on their "reputation," but this little episode will be completely forgotten the next time the hit their targets and greed takes over. Business as usual....

Re:Why the government? (1)

Frequency Domain (601421) | more than 3 years ago | (#33892142)

Because Dell had huge supplier contracts with the government.

Re:Why the government? (0)

Anonymous Coward | more than 3 years ago | (#33894538)

No, the real reason is explained by looking at Kevin Rollins' resume. You'll notice all of the big time Republican organizations he belongs to. He was the cause of the problem and will skate through this.

Payments from Intel? (3, Interesting)

rbarreira (836272) | more than 3 years ago | (#33891990)

Might those "payments from Intel" be related to Intel's attempts to keep AMD CPUs out of the market place as much as possible?

Re:Payments from Intel? (1)

Magada (741361) | more than 3 years ago | (#33892016)

They might. Of course, the anti-trust inquiry won't happen.

Re:Payments from Intel? (0)

Anonymous Coward | more than 3 years ago | (#33892028)

May there be any doubt about the intentions of the evilest of the technology firms? I don't think even Microsoft ever went to those heights.

Re:Payments from Intel? (2, Informative)

fuzzyfuzzyfungus (1223518) | more than 3 years ago | (#33892126)

I'm fairly sure that MS has actually indulged in functionally identical practices, at least back when BeOS was regarded as a potential player.

With Intel, the deal was "Use our chips, and ours only, and there will be large 'marketing assistance' in it for you".

With Microsoft, the deal was "Use our OS, and ours only, and your per-unit OEM price will be competitive. Otherwise, you might find that your competitors are paying less for our product, or even end up buying licences at retail..."

The structuring was a bit different; but the net effect is pretty much identical. In both cases, though, my understanding is that these deals were tempered by a certain degree of realism. Back when Intel was joking around with P4s, and AMD was rocking the Opterons, you could get an Opteron server from Dell(particularly in 4 sockets and above, FSB vs. hypertransport was just a joke), just not a desktop or laptop. Similarly, while they would certainly hold your hand toward Windows Server whatever, you could get your servers bare or with Redhat licences. Even in the present day, though, the desktop/laptop linux offerings are pretty perfunctory.

Re:Payments from Intel? (1)

guruevi (827432) | more than 3 years ago | (#33894284)

I remember the days when companies practically begged Dell to get Opteron offerings. Initially they didn't have any but a lot of large companies (especially government and health care) had standardized on Dell systems. They conceded by giving a few offerings with Opteron processors which were for a while more popular than even their cheaper Intel counterparts.

I also remember the days when companies practically begged Dell to get any Linux offerings (server or otherwise) and they once again had to concede to the customer with Red Hat Linux on the server side. That's one of the reasons imho Red Hat Server became so popular even though other distro's were more capable and easier to use (like the original SuSE back in the day before MS Novell bought them).

Re:Payments from Intel? (1)

AHuxley (892839) | more than 3 years ago | (#33892794)

Re "Microsoft ever went to those heights."
http://en.wikipedia.org/wiki/TRON_Project [wikipedia.org]
"...mayor of Tokyo, Shintaro Ishihara mentioned "TRON was once killed by the former Minister of International Trade and Industry, Hashimoto, because he was at that time under the pressure of United States." This story is supported by the following article on the tron project website, citing Microsoft's lobbying against it."

Re:Payments from Intel? (0)

Anonymous Coward | more than 3 years ago | (#33900748)

Re "Microsoft ever went to those heights."

http://en.wikipedia.org/wiki/TRON_Project [wikipedia.org]

"...mayor of Tokyo, Shintaro Ishihara mentioned "TRON was once killed by the former Minister of International Trade and Industry, Hashimoto, because he was at that time under the pressure of United States." This story is supported by the following article on the tron project website, citing Microsoft's lobbying against it."

Huh? What Sark and the MCP failed to do [wikipedia.org] was accomplished by a Japanese trade minister??

Re:Payments from Intel? (1)

Idbar (1034346) | more than 3 years ago | (#33894028)

Maybe, maybe not [slashdot.org] . As people say, correlation is not causation.

A slap on the wrist. (1, Insightful)

Anonymous Coward | more than 3 years ago | (#33892010)

That is all? Man, it's good to be rich in the US. A regular person caught cooking the books would probably go to jail. Michael Dell gets to pay $4 mil and walk. No penalties whatsoever for his accomplices, either.

Re:A slap on the wrist. (1)

fuzzyfuzzyfungus (1223518) | more than 3 years ago | (#33892086)

It's just like they told you when you were a kid: "[blue collar] crime does not pay".

Re:A slap on the wrist. (1)

bdenton42 (1313735) | more than 3 years ago | (#33896050)

No, his CFO took the fall, suspended for five years.

Dell's former CEO, Kevin Rollins, and James Schneider, the company's former chief financial officer, agreed to pay fines of $4 million and $3 million, respectively. Schneider was suspended from appearing or practicing before the SEC as an accountant for five years. The SEC, as urged by the company in its settlement proposal, spared Michael Dell similar punishment.

http://www.bloomberg.com/news/2010-10-13/dell-s-settlement-of-sec-accounting-fraud-claims-approved-by-u-s-judge.html [bloomberg.com]

There'll be champagne at Dell tonight. (2, Insightful)

Anonymous Coward | more than 3 years ago | (#33892044)

I can only imagine that this would still be cheap for Dell at twice the price.

Why civil? Fraud is a crime (5, Insightful)

schwit1 (797399) | more than 3 years ago | (#33892060)

Why no jail time? It was a multi-million dollar fraud to bilk consumers and stockholders out of millions. How is this any different than blatant theft.

Re:Why civil? Fraud is a crime (2, Insightful)

Anonymous Coward | more than 3 years ago | (#33892116)

Why no jail time? It was a multi-million dollar fraud to bilk consumers and stockholders out of millions. How is this any different than blatant theft.

Jail is for pot smokers, not corporate executives.

Re:Why civil? Fraud is a crime (0)

Anonymous Coward | more than 3 years ago | (#33892118)

Because when important/rich people commit crimes, a whole new set of rules apply? They have powerful friends you know...

Re:Why civil? Fraud is a crime (1)

houghi (78078) | more than 3 years ago | (#33892164)

They have powerful friends you know...

They are called lawyers. Get a good one and you are free. Get a pro-deo one and you get shafted.

Re:Why civil? Fraud is a crime (1)

pinkwarhol (1913356) | more than 3 years ago | (#33892134)

When I "steal" digital music (and get caught) I too must pay a hefty fine... with no jail time. Why should Dell be treated differently?

Re:Why civil? Fraud is a crime (1)

spiffmastercow (1001386) | more than 3 years ago | (#33892248)

Maybe because there's a difference between stealing a 99 cent song that you wouldn't have bought anyway vs. defrauding millions of people out of billions of dollars?

Re:Why civil? Fraud is a crime (0)

Anonymous Coward | more than 3 years ago | (#33892450)

Let's not forget that "stealing" a song is actually copyright infringement, which is (at least for now) a civilly actionable offense. Fraud is a criminal act, a felony in fact. One gets you sued, while the other gets you arrested.

Re:Why civil? Fraud is a crime (1)

pinkwarhol (1913356) | more than 3 years ago | (#33896408)

Fraud IS a felony... and *that's* why it's different than 'blatant theft'. I'm wondering the same thing OP.

Re:Why civil? Fraud is a crime (0)

Anonymous Coward | more than 3 years ago | (#33892136)

Hmmm... maybe otherwise there would be no settlement? Kinda like buying a "Get out of jail free" card.

Re:Why civil? Fraud is a crime (5, Insightful)

hodet (620484) | more than 3 years ago | (#33892196)

Because it was only fraud, you make it sound like he downloaded a album off piratebay.

Re:Why civil? Fraud is a crime (1)

flappinbooger (574405) | more than 3 years ago | (#33892444)

Because it was only fraud, you make it sound like he downloaded a album off piratebay.

Post ... Of ... The ... Week

Re:Why civil? Fraud is a crime (1)

sootman (158191) | more than 3 years ago | (#33903294)

According to Forbes he's worth 14.5 billion--number 37 on their list of the world's billionaires [forbes.com] and the 15th richest person in the United States. [forbes.com] (Think about that for a second: there are only FOURTEEEN PEOPLE IN THE UNITED STATES RIGHT NOW WITH MORE MONEY THAN MICHAEL DELL.)

Let's do some math, shall we? He has $14,500,000,000 and he has to pay a $4,000,000 fine. Let's knock six zeroes off each of those. He has to pay $4 for for every $14,500 he has. That's 4/14500 or 1/3625 of his net wealth. Let's just pretend I'm worth a million dollars (because I don't know how to calculate net worth when your house is upside down and you are carrying lots of other debt.) That would be the equivalent of me paying a $275 fine.

THE GOVERNMENT JUST GAVE MICHAEL DELL THE EQUIVALENT OF A SPEEDING TICKET. Now, that might sound low, but take heart, we're not talking about just any speeding ticket here--we're talking about a bad one, like those "fines doubled when workers present" kinds. Or maybe a school zone. ($310, I think.) Running a red light in my neigborhood costs $202.50, according to the signs they just put up next to the cameras. And that's if I was a millionaire. Compared to my actual net worth, this is probably in the "Taco Bell Combo Meal" zone.

Re:Why civil? Fraud is a crime (1)

confused one (671304) | more than 3 years ago | (#33894632)

Standards of proof are higher in criminal cases. If the government thought they could present a strong criminal case, they would have.

And how much did they profit? (0)

Anonymous Coward | more than 3 years ago | (#33892128)

100m fine but it doesn't say how much they did profit from this fraud. So this could very easily (and probably) be a win-win situation for them

Just from intel? (1, Interesting)

Anonymous Coward | more than 3 years ago | (#33892160)

Maybe the judge cares about the middle class and when he saw that in order to save up this possibility, Dell had frozen all raises and bonuses that people had been promised?

Oh, I have to redact that - i'm lower class... work for them... and make around 40k a year, and have probably talked to a couple of you.

Re:Just from intel? (2, Insightful)

GameboyRMH (1153867) | more than 3 years ago | (#33898458)

You make 40k a year and you're "lower class?" OK I see five possibilities here:

1. You're talking rupees while I'm thinking US dollars
2. You're working towards being a mascot for the Republicans in the next presidential election a la Joe the Plumber, so once you're making over $250k a year you'll be "middle class"
3. You have way too many kids and a stay-at-home wife
4. You do more cocaine than Dr. Rockso
5. You're so bad at managing money you make MC Hammer look good - maybe you own a boat or small aircraft.

Re:Just from intel? (1)

sootman (158191) | more than 3 years ago | (#33903260)

How about "married, one child, living in anything that could be called 'a city' anywhere in California"?

That still does not make him poor. (1)

jotaeleemeese (303437) | more than 3 years ago | (#33908090)

He is just choosing to spend his money unwisely.

Shows how much bad thinking is left in Wall Street (5, Insightful)

kuleiana (629890) | more than 3 years ago | (#33892192)

Shows how much bad thinking is left in Wall Street... when one of history’s most successful computer retailers thinks it’s better to artificially “pump up” its stock prices, rather than increasing its true overall value through better products and better customer service. And as Pikoro noted above, the settlement funds should go towards programs which provide or promote technology for the public good (i.e. pumping up Kno/iPad tablet availability for schools to replace textbooks, or funding a practical, decent, open school admin database), and not going directly into mysterious government coffers where people like defense contractors can get at it, which is doing nothing but *harming* the public good.

Re:Shows how much bad thinking is left in Wall Str (2, Insightful)

Ihmhi (1206036) | more than 3 years ago | (#33892566)

This bad thinking is endemic in our short-term society.

For example, let's say you ran a business printing t-shirts. For an expense you can get a brand new shirt printer that will make your shirts look better than the competitions as well as cost less to print. The downside is that they are pricey enough where you would show a loss this quarter. Would you take this deal? You'd give up short-term profits on the books, but ultimately you'd get greater profits in the long run.

There's this culture of growth growth growth. If you're not growing (and by growing, I mean making profit), you're failing - even if it's for a good reason. I honestly don't think it's a sustainable way to do business in the long term.

Re:Shows how much bad thinking is left in Wall Str (0)

Anonymous Coward | more than 3 years ago | (#33894590)

It's not just making a profit. It's not just making more profit than last time. It's making as much profit as totally unconnected 3rd parties say you should make. Even if you make a profit, more profit than the company has ever made before, because you didn't meet analyst expectations, you as CEO (and your job) are now on the hook for the drop in stock price (supposedly a representation of the value of the company) that will happen when people here "they didn't make their targets!" There are reasons a corporation is considered a sociopath by any measure...

Re:Shows how much bad thinking is left in Wall Str (4, Insightful)

jefe7777 (411081) | more than 3 years ago | (#33895462)

The culture of growth used to be also a culture of contraction, due to a natural cycle. There was balance. Periods of expansion and contraction. People were responsible, bought only what they needed, saved like a squirrel during the good times, in preparation for the lean times.

Now this country is built on living the lifestyle you want NOW, by financing it on your future labor & productivity. And very few squirrel away during the good times, in preparation for the lean times.

People can adjust to contractions. But not if they're loaded up with bills and debt. If you're renting a big apartment, you move to a small apartment. If your paid-for-car costs too much to drive, you take public transportation, ride a bike, walk, or buy a used scooter. If you're commute is 100 miles, you get a different job, you move closer to your existing job. If you lose your job, you use your rainy day fund.

In the last several decades, contractions are increasingly viewed as absolutely negative, and at the first sign of a small contraction, central planners manipulate people so that the small contraction is prevented. This is done over and over, till the strategy fails, and nature gets her way eventually, and we see a huge contraction, that would test even the most responsible people, and for those who are severely leveraged out (just look at debt to income ratio), they have zero chance of adjusting. This is analogous to putting out every small fire in forests. Then one day, the whole thing goes up in a jaw dropping inferno. The natural cycle of expansion/contraction clears out bad businesses, bad debts, reminds people to be responsible on a regular basis with minimal blood on the street, and prevents expansion for expansion's sake. The side effects of a debt based society that embraces central planning, and the idea that we can expand forever, till the music stops, and people scramble for a chair ...it is unsustainable. We're watching it in action, right here right now. This ain't a Republican thing, this ain't a Democrat thing. It's an "us" thing. The leadership of both parties have grandiose plans that are not sustainable. And the sheeple follow along as if it's only one party or the other that is insane... when the reality is, both parties are insane, and they are perfect mirror of their constituents... ...sorry for my long post with the slide into politics ..it's a bad habit. But money, economics, politics, etc are all inseparable....

Re:Shows how much bad thinking is left in Wall Str (1)

Ihmhi (1206036) | more than 3 years ago | (#33903050)

That was an excellent post that described my thoughts better than I did! Thanks for articulating my general point so wonderfully.

Personally? (3, Insightful)

hibernia (35746) | more than 3 years ago | (#33892286)

CEO Michael Dell will personally pay a $4 million fine

So, does personally, really mean personally, or is he going to get reimbursed the $4 million as a "business expense"?

Re:Personally? (3, Insightful)

Chowderbags (847952) | more than 3 years ago | (#33893050)

Michael Dell's net worth is 14 billion dollars. Fining him 4 million dollars isn't even a slap on the wrist, it's a joke. Fine him a few billion dollars and he might get a message.

Re:Personally? (1)

alexo (9335) | more than 3 years ago | (#33938312)

CEO Michael Dell will personally pay a $4 million fine

So, does personally, really mean personally, or is he going to get reimbursed the $4 million as a "business expense"?

Does it matter? A $4M fine for him is something like a $100 fine for me.

Dell (1)

circletimessquare (444983) | more than 3 years ago | (#33892864)

the new Gateway 2000

http://en.wikipedia.org/wiki/Gateway,_Inc [wikipedia.org] .

when you ruin your name, everything else goes down the toilet. electronics is such a cutthroat competitive environment, you can't ever play the game of ruining what people associate your brand name with

because there's also this:

http://arstechnica.com/business/news/2010/06/suit-alleges-that-dell-shipped-12-million-faulty-computers.ars [arstechnica.com]

bye bye dell

Big fine! (0)

Anonymous Coward | more than 3 years ago | (#33893528)

Wow, with a net worth of $13.5 billion, that's like a $20 fine to most of us.

Alternate Timeline (0)

Anonymous Coward | more than 3 years ago | (#33894116)

"What would I do?" Mr. Jobs said to an audience of several thousand information technology managers. "I'd shut it down and give the money back to the shareholders."

Fines? (1)

darth dickinson (169021) | more than 3 years ago | (#33894198)

CEO Michael Dell will personally pay a $4 million fine.

I think his first question was, "Do you take a personal check, or do I have to use my AmEx?"

Seriously, a 4 million fine for someone like Michael Dell is nothing.

Re:Fines? (1)

SydShamino (547793) | more than 3 years ago | (#33895242)

Assuming he keeps all $12 billion of his money in a 1% interest-bearing checking account, $4 million amounts to about two weeks of interest.

And I assume he earns quite a bit more than 1% on his wealth.

Re:Fines? (1)

bdenton42 (1313735) | more than 3 years ago | (#33895884)

According to SEC filings, Michael Dell owns 226,383,088 shares of Dell (worth about $3.6B). Dell is up 14 cents so far today (probably a result of the settlement news), which means that even after the fine he is up $27 million today.

Kill the company. (0)

Anonymous Coward | more than 3 years ago | (#33894526)

We don't want them fined.

We want them closed down.

If the market was allowed by Dell to operate properly, they'd be closed down.

That's the only acceptable result. Government seizure of all IP, with liquidation of the physical assets
and disbursement to everyone who held a share of Dell, prior to the suit.

Anything less is trivial, frivolous, and meaningless.

What about SOX??? (2, Interesting)

danwiz (538108) | more than 3 years ago | (#33896928)

Wasn't SOX (also know as the 'Corporate and Auditing Accountability and Responsibility Act') supposed to prevent such financial accounting fraud?

Sarbanes–Oxley Section 802: Criminal penalties for violation of SOX [wikipedia.org]

Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any case filed under title 11, or in relation to or contemplation of any such matter or case, shall be fined under this title, imprisoned not more than 20 years, or both.

Re:What about SOX??? (0)

Anonymous Coward | more than 3 years ago | (#33898386)

Well there was a pittance of a fine. It's fine, jail or both.

And (1)

mahadiga (1346169) | more than 3 years ago | (#33905016)

Earn billions illegally or immorally.
Pay 30% as Tax to Govt.
Pay 20% as Party Fund to Republicans or Democrats.
Govt will bail you for your shady activities.

Check for New Comments
Slashdot Account

Need an Account?

Forgot your password?

Don't worry, we never post anything without your permission.

Submission Text Formatting Tips

We support a small subset of HTML, namely these tags:

  • b
  • i
  • p
  • br
  • a
  • ol
  • ul
  • li
  • dl
  • dt
  • dd
  • em
  • strong
  • tt
  • blockquote
  • div
  • quote
  • ecode

"ecode" can be used for code snippets, for example:

<ecode>    while(1) { do_something(); } </ecode>
Create a Slashdot Account

Loading...