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Bill Gates Fined $800,000 Over Stock Purchases

Posted by ryuzaki0 on from the drop-in-the-ocean dept.

Bronz writes "CNN Money is reporting that Bill Gates has been fined $800,000 for violating antitrust waiting period for stock purchases. The department alleged that Gates bought more than $50 million worth of stock in ICOS Corp. through his personal investment trust and failed to notify antitrust officials about the purchase, as required." It's also clarified: "The technical incident has nothing to do with the government's massive antitrust battles with Microsoft."

12 of 449 comments (clear)

  1. Re:So what? by DebianRcksLindowsLie · · Score: 4, Interesting

    It's important to note that the violations CONTINUE. And let's face it - this money doesn't go to feed or clothe poor people - it goes....where DOES it go?

    Speaking of abusing the system - check my sig.

    --
    Lindows Steals Copyrighted Art and Promotes Porn
  2. What's another 800K? by erick99 · · Score: 5, Interesting
    The fact that he has done this before (probably not him so much as whomever gets delegated these tasks) shows that he either doesn't care or he considers the fines a reasonable cost of doing business. When you get your ownership up to 10% of a company you have to report it - that's not exactly an obscure requirement. But, Bill and Company got slapped for that as well a few years back according to the article:

    The Federal Trade Commission said it had warned Gates about a similar reporting infraction when his personal investment trust bought shares of Republic Services Corp. (RSG: Research, Estimates) in November 2001. The acquisition brought his stake to more than 10 percent of the outstanding shares of the waste-hauling company.

    Antitrust rules require that entities must file with the government when their holdings exceed 10 percent of a company's stock.

    . Anyway, when you are worth $40 billion you can afford these "luxuries."

    Happy Trails!

    Erick

    --
    http://www.busyweather.com/
  3. GatesTrade.com - Only a 1.6% commission! by strictnein · · Score: 5, Interesting

    It cost Mr. Gates $800,000 to buy $50,000,000 worth of stock. So, I guess that's 1.6% commission for the SEC?

    --
    Casual Games/Downloads
  4. Re:Who cares? by errxn · · Score: 5, Interesting

    Please *mod parent up*! I was going to say the same thing. Then again, maybe the editors of /. enjoy having this website being perceived as a bunch of petty anti-MS zealots with an axe to grind, credibility be damned.

    Memo to editors: You do no favors for the popularity of [insert favorite OS here] by posting sophomoric, vindictive, and largely irrelevant stories about Bill Gates. On the contrary, it makes you (and what you advocate, by association) look immature.

    Just stop it.

    --
    In Soviet Russia, Chuck Norris will still kick your ass.
  5. Re:MS, Martha and Drugs... by kfg · · Score: 5, Interesting

    Ah, but there's a difference. Martha didn't violate any SEC law, so far as anyone can tell and has never been charged with such.

    What she did was lie about her guilt, and that's what she is facing jail time over.

    No, wait, that's not right. She didn't lie about her guilt, because she was innocent. Ok, so, what she's facing jailtime over is lying about her innocence.

    No, that can't be right either, because she was innocent.

    Ok, so maybe your wife has a point.

    KFG

  6. Re:So what? by gfxguy · · Score: 3, Interesting

    The fine... someone gets fined $800k or a million dollars... where does that money go?

    I imagine it goes to supporting the entity that discovered and prosecuted the problem, but I could be wrong. Afterall, taxes on cigarettes are supposed to go for healthcare, right? And taxes on gasoline go to transportation infrastructure, right? Right?

    It just gets sucked into the big government void.

    --
    Stupid sexy Flanders.
  7. Re:MS, Martha and Drugs... by sumdumass · · Score: 3, Interesting

    This sounds alot like the "it was just a blowjob" argument around clinton and his scandles. You will probally end up beating you head into the wall before convinceing certain people of the facts.

    It is funny with Microsoft, bill gates, martha stewart, bill clinton or any one else is in trouble, their popularity always seems to get in the way of the facts. Bill broke a minor law and didn't cover it up or lie about it (in this case any ways) the others seemed to do stuff even more shady by covering thier tracts and that doesn't seem to mean anything.

    I guess it is like someone was speeding and got a ticket, the other person was fleeing and eluding the police tryign to give them the ticket and in turn got another penalty because they didn't stop.

  8. Why is he buying this stock? by Tenebrious1 · · Score: 3, Interesting

    Hmm... the stock price has been dropping, has a PE of -15.96! Wonder if Bill knows something?

    --
    -- If god wanted me to have a sig, he'd have given me a sense of humor.
  9. Re:So what? by klui · · Score: 5, Interesting

    Let's see. According to CNN, on May 2002, when Gates acquired the $50M shares, stock was worth around $25. Now it's around $32. If he hadn't sold any, that stock would be worth around $64M today. Earn $14M illegally and pay $800K. If I were Gates, I would continue doing this. The important thing is the fine is not an incentive to make Gates from doing something similar in the future.

  10. Re:So what? by 4of12 · · Score: 4, Interesting

    but their names now live on in their philanthropic works.

    Only because philanthropy is a way to avoid the government taking half of the estate upon your death.

    Give it away to the charity of your choice or let the government take half upon your death.

    It's not like you get to take it with you when you go:)

    All the hand-wringing about "death taxes" is such bullshit.

    Bill Gates Sr., one of many, thinks that the ideas floating around to eliminate the current high inheritance taxes are a bad idea and would be devastating to charities.

    Low inheritance taxes preserves an effective nobility and leisure class that will use an accident of birth to make a living as a shareholder. Arguably the builders of wealth should obtain such benefits - not their progeny. Descendents should be provided equal opportunity to compete based on their own merits and talents.

    --
    "Provided by the management for your protection."
  11. Caring for Poor People by SEWilco · · Score: 5, Interesting
    Pronoun trouble: Which "This Money" do you refer to?
    • All of Gates' money?
      • Some goes to taxes. Discussing what happens then is a separate matter.
      • Gates spends some money for his own needs, which goes to stores and companies who spend some on employee payroll and supplies.
      • Some of his money is simply in banks, who earn the money the banks need by lending and investing it.
      • Some of his money is invested, such as in stocks. A fraction goes to investment advisors and stock brokers. This is gambling money, as the value varies.
      • A lot of his money is still in Microsoft, as it is in the form of Microsoft stock. Microsoft is using the money until the company chooses to buy it back. The value to Gates varies with the price in the stock market, but he can't give it to others until he gets cash. Well, "he" is giving indirectly to others -- the workers which the company pays.
      • Gates is giving some of his money away to what he thinks is a good purpose, whether that agrees with your "poor people" purpose or not.
      • He gives some to foundations and organizations, and I'm sure he gives other money away directly and in tips.
      • Gates has given some of his money to at least one foundation, which gives some away. Some foundations are given enough money to invest it, and can then give away those profits forever.
      • When Gates dies, some money will go to taxes and some to foundations and people. People with the money will do similar things. Eventually, some descendants will choose to become philanthropists and mostly give money away, feeding it to organizations and individuals.
      • Some goes to the activism industry, and is out of his control.
    • The money Gates spent on these stock purchases?
      • The money Gates spent went to whoever he bought the stock from. This might be the company, which is spending it to maintain its business. This might be private individuals, who will spend it in various ways.
    • The money given to the government to pay the fine?
      • Ask the government what is done with it.
  12. Percentage Fines by localman · · Score: 3, Interesting

    I was thinking the other day that when it comes to the law, fines should always be calculated as a percentage of your income. Being rich comes with all sorts of great advantages, but being able to ignore criminal penalties because the fee is so small shouldn't really be one of them.

    I thought of this mainly in the fact that when I was poor, a speeding ticket could ruin my budget for months, whereas now I am pretty well off and couldn't give a damn about a $100 ticket. I'm not much of a speeder anyways, but it just doesn't make sense that the penalty is less meaningful to me just because I make more money.

    I know there are punative damages in civil cases (which are great, but shouldn't go to the plaintiff as they do now). Is there any similar system in criminal cases? Certainly not in most fines that I see -- they're flat.

    Just a wondering...