SEC OPENS FORMAL INVESTIGATION INTO DIEBOLD’S ELECTION DIVISION

Allegations of 2005 Mistatements of Revenue Concerning Voting Machines, Long-term Service Contracts by Truth-Challenged, Anti-American Company...

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Blogged by Brad from the road…

Apologies in that normally this would have been a siren-worthy item on the day it broke (last Thursday) here at BRAD BLOG had I not been on the road and looking the other way for the most part (as I still am). Particularly since we’ve been following Diebold’s financial malfeasance closely for some time, including breaking the original report of both the Securities Fraud Class Action suit against the company last December, and the SEC’s original “informal” (now formal!) investigation of Diebold in May.

Hat-tip to Warren Stewart of VoteTrustUSA.org for picking up news of the now-formal investigation late last week (and to John Gideon who, naturally, noticed in last Thursday’s ‘Daily Voting News’)…

Reuters is reporting that the U.S. Securities and Exchange Commission has begun a formal investigation into how Diebold recognizes revenue. In a public filing in May, Diebold has acknowledged that SEC staff had begun an informal inquiry but the company’s latest filing on July 27 reported that the investigation had been converted into a formal nonpublic investigation.

SEC investigations typically begin as informal inquiries. A formal inquiry is one in which the commission authorizes the staff to look at whether laws have been broken and carries the power to subpoena witnesses and documents.

Though both Diebold spokesman Mike Jacobsen and SEC spokesman John Nester declined to comment on the investigation, it was clear that the focus of the inquiry relates to Diebold’s election division, Diebold Election Systems, Inc.

More at VoteTrustUSA…

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Reader Comments on

SEC OPENS FORMAL INVESTIGATION INTO DIEBOLD’S ELECTION DIVISION

7 Comments

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7 Responses

  1. 1)
    JonHunsicker said on 8/13/2006 @ 2:18pm PT: [Permalink]

    Would this affect Pap and RFK Jr. Qui Tam suit against the voting machine companies at all? (probably a dumb question…)

  2. 3)
    oldturk said on 8/13/2006 @ 8:13pm PT: [Permalink]

    GINNY – Comment # 2

    Nice job, THX for putting this together and the share.

    Most of us had not yet seen this.

  3. 4)
    Dredd said on 8/14/2006 @ 5:27am PT: [Permalink]

    The phrase “DIEBOLD’S ELECTION DIVISION” is not a term of art.

    “Diebold Election Systems, Inc.” is a seperate and distinct corporation.

    If a lawyer sued Diebold, Inc. for what Diebold Election Systems, Inc. has done, without competent evidence to pierce the corporate veil, it would be malpractice.

  4. 5)
    Dredd said on 8/14/2006 @ 6:12am PT: [Permalink]

    The class action lawsuit (link here, PDF), names Diebold, Inc., and executives etc. from that corporation (“DBD” is its stock exchange id). It is an Ohio corporation.

    Diebold Election Systems, Inc. (DES) is a Delaware corporation.

    Confusing the two is an error that can have serious legal consequences to the unaware.

  5. 6)
    Dredd said on 8/14/2006 @ 6:32am PT: [Permalink]

    The Diebold realm has purchased a company that deals with Homeland Security:

    “Diebold is committed to growing its presence in the government market, and we will continue to make the investments that bring our customers access to the solutions that are vital to their operations in the government space,” said Dennis M. Moriarty, senior vice president of Diebold Global Security. “Actcom has vast experience in physical security systems, as well as in many of the integrated systems currently in use by the federal government. Bringing our companies together will set new standards of excellence in security for the government market.”

    (link here, bold added). Knowing how much “security” EVM’s have, and knowing how much “security” selling US military factories and US port management to troubled mid-eastern countries provides, this putting Diebold into national security makes sense. If insecurity is really the objective.

    One prong into the military industrial complex is rooted in those who approve Diebold Election Systems, Inc. EVM’s (link here, and here; [read whole thread]).

    So now they have two tenacles into the government, or is it the other way around?

  6. 7)
    Larry Bergan said on 8/14/2006 @ 7:40pm PT: [Permalink]

    Thanks for that Ginny, I had to wait overnight to see it, but well worth it. I hope the DNC hung their head in shame.

    Great speech Brad!

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