Feeds

NEC accuses hungry, thirsty worker of stealing $300m

A man has to eat

Reducing security risks from open source software

NEC this week warned that it will need to restate past financial results after a worker allegedly booked some $310m in faked transactions over three years. The reason for such abuse? NEC claims the worker wanted the money for "drinking and eating".

You can't make this stuff up.

In a lengthy statement, NEC accuses an unnamed male employee in its semiconductor design group of creating a string of "fictitious transactions." The worker would allegedly create a fake purchase order, push it through NEC's accounting system and then weirdest of all actually receive payments for the products from customers.

"The false transactions relate to certain sales of products, which were actually not delivered, and were fabricated by creating fictitious 'round-trip' transactions among NEC Engineering and its vendors and purchasers," NEC said. "The fictitious transactions were first recorded in March 2002 and recorded repeatedly until December 2005."

Oddly, NEC never explains why a customer would pay for made up product. The customers, however, appeared impressed with the fake gear with all of them paying for the equipment on time, according to NEC.

NEC management caught wind of the sketchy transactions and kicked off an internal investigation into the matter. The company hired independent lawyers and accountants to sort through the mess.

"Based on these findings, NEC Engineering will take any necessary actions, including filing criminal actions, against the employee," NEC said.

NEC plans to restate its financial results once auditors have finished looking into the matter, and the company vowed to institute tighter financial controls.

According to Japanese media, NEC claimed that the employee said he needed the extra money for "drinking and eating." A diet of caviar stuffed panda lips and champagne soaked aye-aye testicles can be very expensive. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.