Allegations of 2005 Mistatements of Revenue Concerning Voting Machines, Long-term Service Contracts by Truth-Challenged, Anti-American Company...
By Brad Friedman on 8/13/2006, 12:21pm PT  

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...