Oh Lee Kun-hee -- if you keep this up, you're going to make the Enron CEOs look like choir boys. The latest episode in the unending shame-game that is Samsung's corporate improprieties comes in the form of a an actual indictment against the electronic-maker's top man... for fraud. According to a report out of Australia, prosecutors in Korea have formally charged Kun-hee (who has admitted guilt anyhow), but say they won't arrest him because it would cause "enormous disruption" in the company's operations. Authorities said instead they plan to send him to a week-long, all-expenses-paid trip to a luxurious spa, and hope that a deep tissue rub will rid him of his lawbreaking ways.

[Thanks, Hussain]

Not a lot of people in the US know the name Lee Kun-hee, but he's the chairman and son of the founder of the world's largest gadget company: Samsung. And he's also at the epicenter of one of the craziest corruption scandals the industry has seen in years. Kun-hee and his cronies have already been subject to government probes, and the disgraced chairman has already basically admitted his guilt and responsibility for Samsung's bribery wrongdoings, but now he's made the next ever so gingerly step towards the exit by stating, "I will deeply think about reshuffling the corporate management structure and the management lineup, including myself." Sure, think it over, take all the time you need -- just don't let the door hit you in the ass on the way out, man.

It's embarrassing enough to be embroiled in scandal after scandal, particularly if you're Samsung, whose identity is indelibly linked with that of the proud, South Korean nation (and responsible for 20% of its exports). Now this, photographic evidence of an alleged bribe from Lee Kyung-hoon, a former in-house lawyer for Samsung Electronics, as proof of Samsung's nefarious efforts to coerce government officials into glossing over past, corporate indiscretions. The 5 million won (about $5,450) bribe disguised as a book was supposedly given to Lee Young-chul, the former Secretary to the South Korean president, Roh Moo-hyun, for Legal Affairs, on January 26, 2004. He gave it back, one month later. The evidence was presented today by the "People's Action" civil group in the hopes that the government would open an independent counsel to probe the activities of Samsung and its chairman, Lee Kun-hee.

[Via Chosun, thanks Soc Gi]

It's no secret that Samsung and scandal have gone hand-in-hand in the past, but apparently, the latest one has been of particular significance in the firm's homeland. The most recent incident involves Kim Yong-chul, a former top Samsung lawyer, who went public this month with claims that Chairman Lee Kun-hee and other officials "masterminded a campaign to raise slush funds to pay prosecutors, judges and lawmakers and influence a high-profile court case." In response, independent prosecutors were called in to investigate the allegations of "bribery and policy manipulation," and not surprisingly, Samsung has reportedly fired back calling the proclamations "groundless and false." It should be noted that no "substantiating evidence" has been provided thus far, but analysts are already suggesting that these assertions, if proven legitimate, could even play a role in the nation's upcoming presidential election.

[Via BusinessWeek, image courtesy of Forbes]

Earlier this year, Inventec Appliances (spun off from Inventec Electronics) was raided as prosecutors began looking for evidence to support charges of alleged insider trading, and now it looks like nine of the firm's employees could be headed to the slammer. Taiwan's Banciao District Prosecutors Office "alleged that nine executives and one lower level employee failed to publicly reveal a steep drop in iPod orders until after they had sold off nearly $22.4 million worth of stock," and although the employees knew of the order cuts as early as January 19th, nothing was publicly revealed until mid-March. Purportedly, prosecutors "are seeking the stiffest penalties against the two top executives," and if the evidence sticks, we have all ideas that Inventec will be huntin' a new Chairman (and President, too) in the not-too-distant future.

[Via TUAW]

While you may assume that three's company, it looks like Fujitsu Kansai Systems has little choice but to join the dubious trio in yet another round of bookkeeping scandals. Aside from questioning the quality of accounting curriculums in Japan, parent company Fujitsu is being faced with news that one of its subsidiaries allegedly "booked fictitious sales," and while we're sure it wishes the slight dip in stock prices were the only consequence, we're also hearing that "other companies may be involved with the bogus accounting at the software-consulting and sales unit." Of course, spokespersons for the company simply reiterate that investigations are ongoing, but at least one instance of circular sales involving NAJ has reportedly been divulged. So, who's next? [Warning: Read link requires subscription]

So apparently BenQ and Siemens aren't the only companies whose employees don't like to play by the rules, as tax investigators looking into NEC's shady financials have found that select personnel were involved in schemes that racked up 2.2 billion yen ($18 million) in fake orders and earned them 500 million yen ($4.1 million) in kickbacks. The charges come on top of already shady reporting by the Japanese company, which had to restate its fiscal 2006 earnings three times already and still risks being delisted from NASDAQ save for intervention from the exchange's Hearings Review Council. For its part, NEC offered the typical spiel about regretful actions and possible criminal charges -- which actually seems to have done some good, as the company's domestic shares rose slightly following the news.

For those dwelling in England who enjoy a touch of privacy in their day to day lives, help could be on the way. Amidst the smattering of new surveillance methods being installed and implemented within the nation's border comes a second inquiry into the "constitutional implications" of such invasive measures. If you'll recall, the Commons' Home Affairs committee has already planned its own review, and now the UK's Constitution Committee will be "conducting an inquiry on the consequences of the collection and use of surveillance and personal data by the State." Basically, the group is trying to visualize just how damaging all these CCTV installations, car trackers, and behavior monitors are on the "relationship between individuals and institutions." Another aspect will be to scrutinize whether UK citizens need additional protection under the law from such voyeuristic tactics, and judging solely by the sheer multitude of surveying going on over there, we couldn't complain with a little extra shielding. [Warning: Word Document read link]

[Via El Reg]

In a remarkably candid and defensive statement issued today by key members of Apple's board of directors (including Eric Schmidt and Al Gore -- heard of 'em?), apparently, "We are not going to enter into a public debate with Fred Anderson or his lawyer." It goes on to say:

"Steve Jobs cooperated fully with Apple's independent investigation and with the government's investigation of stock option grants at Apple. The SEC investigated the matter thoroughly and its complaint speaks for itself, in terms of what it says, what it does not say, who it charges, and who it does not charge. We have complete confidence in the conclusions of Apple's independent investigation, and in Steve's integrity and his ability to lead Apple."

Kind of sounds like Steve just wrote it on his iPhone and sent it on over, right? Anywho, no real updates from the SEC since yesterday's allegations that Steve was behind the whole backdating scandal, but it looks like Cupertino Co. are getting off without sanctions and Jobs still lies in legal limbo for the time being, despite Apple's wholehearted support of their Jobs-in-Chief.

Ouch, El Jobso is not pleased. The tech exec superstar who's largely gotten off clean despite Apple's lingering backdated stock options scandal is now being publicly blamed for wrongdoings by former Apple CFO Fred Anderson, who was dismissed by the company in 2004. According to a statement issued by Mr. Anderson's lawyer via the SEC:

"Fred cautioned Mr. Jobs that the Executive Team grant would have to be priced based on the date of the actual Board agreement or there could be an accounting charge. He further advised Mr. Jobs that the Board would have to confirm its prior approval in a legally satisfactory method. He was told by Mr. Jobs that the Board had given its prior approval and the Board would verify it. Fred relied on these statements by Mr. Jobs and from them concluded the grant was being properly handled. ... It now appears the Board may not have given the necessary prior approval to the grants, contrary to what Mr. Anderson understood from Mr. Jobs"

This statement was issued after Anderson was ordered by the SEC to return $3.5 million dollars in stock options and also fork over a $150,000 fine for his part in the whole mess. On the flipside, former Apple general counsel Nancy Heinen seems intent on going down with guns blazing: from what we can tell, she has no plans on settling so easily. The SEC charged her for her participating in a scheme that caused Apple to under-report its expenses by almost $40 million, and it looks like she's going to court like the high-powered attorney she is. Things are not looking good Cupertino way -- could this mark the beginning of the end of the Jobs-led Apple corporate structure as we know it? Only time will tell, but we'll keep you updated. [Warning: link requires subscription]

Screw getting a dollar a year salary or changing the world, the hip cool chairperson / CEO thing to do these days is resign. Perhaps for obvious reasons, or perhaps for the daunting task of getting your company back on track after major setbacks, the big wigs are falling in droves. This time around it's Siemens chairman Heinrich Pierer who's bailing, because despite the fact that he's not involved in the current embezzlement investigations, he says his duty lies with the firm and its 400k employees. He said that his (soon to be former) company is in a "difficult situation due to the in part apparent and in part alleged misconduct of a number of managers and employees," and that "The sole reason for my decision today is to serve the best interests of Siemens." He also added, just in case we weren't clear on the fact that he isn't in trouble with the popo, that this was "A personal responsibility in view of the current investigations was not the basis for my decisions." Don't worry Heinrich, we don't blame you one bit.

[Image courtesy German Press Agency]

Seems we can't have a month go by without another industry-wide price fixing scandal. Today's cartel was bent on fixing the prices of professional-grade video tapes used in television. An infamous list of swindles which includes DRAM, LCDs, and online-music just to name a few. While the EU regulators citied "several companies," only Sony would confirm that they were charged with the crime. Fingers are also wagging in the direction of Panasonic, Fujifilm, Hitachi Maxell and TDK but all declined to comment on the matter. So innocent until proven guilty, mkay. The EU's charges are based on raids it made in 2002 as well as information received since, under a leniency program. Companies now have two months to respond. If guilty, companies could be fined as much as 10% of their annual global sales. Oh my.

While Apple's surely enjoying the perks of having a monumental amount of iPods unwrapped just days ago, everything's not exactly kosher in Cupertino. Aside from the mysterious mouse the firm just patented, the company is facing another bevy of off-the-wall lawsuits, all while trying to fish its CEO out of potentially hot water. After the Securities and Exchange Commission found that ole Steve was granted 7.5 million stock options without the proper authorization of Apple's board of directors in 2001, there was widespread speculation that Mr. One More Thing may suffer the same fate as Apple's former CFO Fred Anderson, who resigned after a similar debacle in 2004. It seems, however, that things just might work out okay after all, as Apple finally filed its required forms with SEC, recognizing a "total additional non-cash, stock-based compensation expense of $84 million after tax, including $4 million and $7 million in fiscal years 2006 and 2005, respectively." Aside from taking the lofty charge, the company also stated that while Jobs was "aware of the favorable grant date recommendations, he did not financially benefit from these grants or appreciate the accounting implications." So all those out there holding your breath to see if Macworld would ever be the same if this went south, it looks like we'll be seeing jeans and a black shirt all over again in just a few weeks.

We've just received word that HP chairwoman Patricia Dunn has resigned, effective immediately, in the wake of the corporate spying scandal that has plagued the company for weeks -- keep in mind that this is the same woman who previously said she would not step down until 2007. Earlier this month, it was revealed that while undergoing a leak investigation, HP had hired private investigators who accessed private phone records of company boardmembers and nine journalists without their permission. The investigators are said to have used pretexting -- the sleazy (not to mention illegal) act of impersonating someone else to gain access to their confidential records -- in order to acquire this information. The now-departed chairwoman, who took over from Carly Fiorina only 18 months ago, had authorized the leak investigation earlier this year to learn who among the company's board had revealed corporate information to CNET News in 2005. Dunn, other company higher-ups, and the private investigators will likely face criminal charges; Bill Lockyer, California's attorney general, said earlier this week on "The NewsHour with Jim Lehrer" that "We currently have sufficient evidence to indict people both within Hewlett-Packard, as well as contractors on the outside." Dunn, who also recently won the Bay Area Council's Hall of Fame Leadership award (she really did), isn't quite out of the woods just yet -- she will almost certainly get completely throttled when she has to answer questions before a Congressional committee next week.