Feeds

NEC accuses hungry, thirsty worker of stealing $300m

A man has to eat

Bridging the IT gap between rising business demands and ageing tools

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. ®

Application security programs and practises

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 fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
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
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
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.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.