scandal
Latest
Guildwatch: "Makes it sound like Teapot Dome up in here"
Menzoberranzan on Tichondrious-H decided recently that after a spat of drama, they were going to go on hiatus until Wrath, so their GL cooked up this video to show off some of the highlights of the guild. Most of it is just a slideshow of screenshots (so we're using it as the header shot this week), but jump up to 7:19, because there's some funny kids dancing.Lots (and I mean lots) of drama in the GW this week (including the "corrupt loot council" that spawned that gem of a title), so make sure to click the link below to read it all. And don't forget to send your own tips in -- wowguildwatch@gmail.com is the email address. We want your downed, drama, and recruiting news, so send it all.
Samsung CEO charged with fraud, won't be arrested
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]
Samsung's Lee Kun-hee carefully considering his options: prompt or prolonged resignation
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.
Losing influence with SOE: EQ2 Flames admin "LFG" tells all
var digg_url = 'http://digg.com/pc_games/SOE_and_EQ2_players_fallout'; He is an EverQuest 2 player that rose to power leading one of the largest fansite communities. He earned the esteemed "Community Influencer" rank that opened the gates to game designers and allowed him to forge ties with prominent SOE staff. With his connections it wasn't long before the site he administrates, EQ2 Flames, served as a clandestine outlet for EQ2 developers to post on. Behind the scenes "LFG" played a role working with inside sources to leak information that resulted in the EQ2 Test Server scandal. The forum also resulted in leak of the news (almost a month before it actually happened) that former Senior Producer, Scott Hartsman, was to part ways with Sony Online Entertainment. His actions wouldn't come without serious ramifications. Last week SOE terminated his "Influencer" membership, citing a lack of participation and misconduct as the reasoning behind their decision. In the destructive wake that followed an ugly entanglement by both SOE developers and EQ2 players has surfaced. Allegations of cheating, developer corruption, and other scuttlebutt permeate forum posts. This is a drama that pits community against community, developers against players, and more than likely developers against developers. It is a story that has shaken up a very large community and that has once placed SOE in a questionable spotlight. I contacted "LFG", the EQ2 Flames administrator, to help bring some clarity to it all.In the interview below several allegations involving SOE employees are levied. These along with other accusations on EQ2 Flames also raise other questions regarding SOE's internal policies. At the time of this posting SOE's community team had not yet responded with an official comment. When SOE does respond we will post it in full.
SOE caught red-handed: EQ2 Player / Dev relationship breached ethical boundaries
Several days ago Massively reported that EQ2 Flames administrator broke the story on a scandal that regards numerous members from Unhallowed Triad, a guild on EQ2's Test server that was transferred to Unrest, a Live server through an inside connection at SOE. Character transfers from the Test server to a Live one is not allowed and against current SOE transfer policy; albeit, the EULA has a clause that SOE may change this policy at any time. However, the case is made that a Player / Dev affiliation has led to corruption, leaving many infuriated players with lots of unanswered questions as seen in these two threadnaughts. To recap for those not following this closely or wanting to sift through 100+ pages on the forums: SOE employee(s) abused their power breaking various codes of ethics (confirmed & guilty) Numerous Test players accuse Unhallowed Triad with a history of exploitation and getting away with it in due part to their SOE connection (rumors) Someone at SOE made the call to transfer Test characters to a Live server breaking policy (confirmed & guilty) Not only were characters transferred to Unrest, but items as well. Unhallowed Triad's Guild level was also inflated to 60. (confirmed & guilty) Many Unhallowed Triad guild members admitted to transferring off test in Assassin's chat (confirmed) Several Unhallowed Triad guild members were transferred unknowingly (more than likely) Legitimately leveled characters belonging to several Unhallowed Triad members were transferred over from other servers or already leveled on the Unrest server (confirmed) Unhallowed Triad guild tag no longer exists but there other guild tag Unholy Trinity exists and their Guild level stands at 30 (confirmed) All players on the Test server have not been given the same opportunity to transfer to a Live server The evidence found via EQ2 Players alone is overwhelming. So much so that it's impossible to sweep all the allegations under-the-rug. Initially, SOE was quick to react as both Alan "Brenlo" Crosby, Director of Global Community Relations and Bruce "Froech" Ferguson, EQ2's new Senior Producer admitted to SOE's involvement. Well, rather that someone at SOE made the call to override the policy, but in a good natured manner to reward certain players for their hard work on the Test server. Not a smart choice of words or tone given EQ2 players warranted concerns. In any case, Ferguson claims the transferred characters will be removed. Since their initial statements and response there has been no further word from a SOE representative on this matter.
Rumor: Entire guild Unhallowed Triad moved from EQ2 Test Server to live
A thread on popular forums EQ2Flames is asserting that a guild from the EverQuest II Test Server, Unhallowed Triad, has been moved over to the live server Unrest. This is something that SOE had said would never happen, due to the doubled experience gain on Test making it unfair on live players. The poster also claims that there was a GM account in the guild that assisted them in killing things that they could not take down on their own, in order to obtain some of the best gear in the game.
Rumor: GameSpot Editorial Director fired for Kane & Lynch review
It seems as we slept last night, big things were happening over at GameSpot. Rumors are flying (flying we say) that GameSpot's Editorial Director Jeff Gerstmann was fired thanks to a negative text review and a very negative video review of Kane & Lynch: Dead Men. As you can see from the above image, Eidos is obviously sending a lot of advertising money GameSpot's way, leading many to think that publisher pressure had something to do with the firing. Adding fuel to the fire, the Kane & Lynch skin at GameSpot seen above has since been removed, within hours of the story breaking. It's all still hearsay at this point -- the only confirmation is currently coming from anonymous sources -- but if it's true, it's likely to rock the game industry. The news is already exploding on GameSpot's forums, while the resulting posts on the Eidos forums have apparently been purged. There's a lot to go over with more likely to break. Hit the links below to read Joystiq's coverage from early this morning. Check out Gerstmann's video review of Kane & Lynch after the break.Read - Rumor: GameSpot Editorial Director fired over Kane & Lynch reviewRead - Eidos and GameSpot forums exploding over Gerstmann incident
The New York Times finds EVE Online intriguing
The New York Times published an article on EVE Online this morning. NYT writer Seth Schiesel focused on EVE's growth and emphasis on player freedom.Hilmar Petursson (CCP's CEO) told Schiesel in a phone interview that there are "basically two schools of thought for operating an online community. There is the theme-park approach and the sandbox approach. Most games are like Disneyland, for instance, which is a carefully constructed experience where you stand in line to be entertained." He said that CCP takes the sandbox approach, creating a world where players are free to define their own experiences.The article also describes the current political climate in EVE Online's worth, including the Band of Brothers blueprints scandal and other things. If you're already an EVE player, you won't find anything new in the article, but if you're not, it's bound to be an eyebrow-raising read.
A Samsung bribe is worth a thousand votes
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]
Latest Samsung scandal gets hot-button treatment
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]
Inventec Appliances execs fail to disclose iPod order cuts, could face prison
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]
GamePolitics 10 biggest gaming scandals of all time
Where were you when Night Trap hit the senate floors? Our favorite watchdogs over at GamePolitics have compiled a list of what they believe to be the 10 biggest gaming scandals of all time. What's at the top of the list? Well, you decide that part via a nifty poll on their front page.Their list covers all your favorites from the Hot Coffee debacle to a more recent headline darling, Sony versus Parliament. They even managed to track down some stories that you may have have forgotten about such as 25 to Life's cop (and robber) killing and SimCopter's spit swapping dudes.Many folks have already pointed out the glaring omission of Mortal Kombat from their list. While we would have appreciated a choice that better reflected the creation of the ESRB, it's fair to say that Night Trap did most of the talking in that situation.
Fujitsu subsidiary dinged for booking fictitious sales
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]
NEC employees caught up in kickback, fake order scandal
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.
UK Constitution Committee to investigate surveillance overload
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]
Apple "not going to enter a public debate with Fred Anderson"
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.
Fred Andersen pays fine, says he didn't do it
We've already mentioned that Fred Andersen has agree to pay $3.5 million in fines to SEC in regards to the Apple backdating scandal. However, he is not going quietly into that good night. Mr. Andersen has released a statement (requires a WSJ subscription) which emphasizes that he admits no wrong doing. He goes on to claim that he warned Steve Jobs that if this compensation business wasn't handled correctly there could be some fallout. Jobs assured Fred that it was all on the up and up.I don't think this story will be going away any time soon.
Former Apple CFO publicly blames Jobs for stock options scandal
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]
Siemens chairman resigns amidst widespread corruption scandal
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]
Sony, others named in video tape price-fixing scheme
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.
