Corruption

Federal prosecutors have charged a prominent hedge-fund manager and five others with securities fraud resulting from insider trading involving some of the tech industry's best-known companies, including Intel, Google, and IBM.

Raj Rajaratnam of Galleon Group was arrested Friday in New York according to various reports and charged with 13 counts of securities fraud and conspiracy following a FBI investigation into Galleon Group's trading patterns. Also charged in the complaint, filed in U.S. District Court for the Southern District of New York, were co-conspirators Rajiv Goel of Intel and Anil Kumar of McKinsey, which provided consulting services … Read more

Mike Volpi's battle with his former employer Joost is now headed to court.

Joost announced on Friday that it has filed a lawsuit against Volpi, alleging that the former CEO used trade secrets and other confidential information in a bid to acquire a majority share in Skype from eBay.

The lawsuit comes just days after Joost relieved Volpi of his duties as chairman and a member of the board, saying that it was investigating his actions while he was chairman.

The fracas has its roots in the complicated relationship between online video provider Joost and VoIP provider Skype.

Joost … Read more

One California state senator is trying to crack down on inmates using cell phones while serving time.

Prison inmates in California aren't really permitted to have cell phones. They have to forfeit their devices before being locked up. But that hasn't stopped thousands of phones from being smuggled into prisons each year. In fact, officials say that the number of cell phones confiscated in California prisons has doubled in the last year from 1,400 devices in 2007 to about 2,800 in 2008. And the problem appears to be getting worse this year.

Currently, being in possession … Read more

The recently appointed federal chief information officer returned to work Tuesday, after temporarily stepping down in response to the arrest of one of his former employees on bribery charges.

Vivek Kundra took a leave of absence from his position as federal CIO last week after an FBI raid of the District of Columbia's office of the chief technology officer. The FBI raid coincided with the arrest of two individuals charged with conspiracy to commit bribery, including one man who worked in the government office while Kundra served as D.C. chief technology officer.

The defendant Yusuf Acar allegedly attempted … Read more

WASHINGTON--President Obama's economic stimulus plan has already spurred activity in at least one online industry, though not one the administration was hoping to encourage.

Deceptive Web sites, advertisements, and e-mail campaigns have cropped up across the Web in recent weeks, luring consumers into scams by promising them federal grant money from the stimulus package, the Federal Trade Commission said Wednesday.

The FTC is investigating these scams and is reaching out to the private sector for help. Google on Wednesday morning committed to investigating stimulus-related ads that violate its anti-scam policy, and Facebook has pulled ads for stimulus funds from … Read more

With less than a week left before the Obama administration moves in, the Bush White House was ordered Wednesday to turn over any devices that may contain e-mails from March 2003 to October 2005, a period from which millions of the executive office's e-mails appear to be missing.

In an emergency court order, Judge Henry Kennedy of the U.S. District Court for the District of Columbia directed the Executive Office of the President to search staff workstations and personal storage table files, and to preserve any e-mails from the period in question.

The court order also directed the … Read more

Federal Communications Commission Chairman Kevin Martin ignored his responsibilities as head of the regulatory body and abused his power, according to a congressional report released Tuesday.

Over the course of his tenure, Martin manipulated and withheld information from the other FCC commissioners and from Congress, neglected his statutory responsibilities to produce certain information to Congress, and ignored evidence that certain national communications programs were being grossly mismanaged, according to the report issued by the House Committee on Energy and Commerce, titled "Deception and Distrust: The Federal Communications Commission Under Chairman Kevin J. Martin." (PDF)

The committee launched a … Read more

WASHINGTON--A federal judge decided on Thursday not to impose a prison sentence on the senior directors of E-Gold, an Internet-based digital currency firm, who had previously pleaded guilty to violations of money laundering and running an unlicensed money transmitting business.

The three directors of E-Gold, in addition to its Gold & Silver Reserve parent company, were indicted in April 2007 after federal prosecutors accused the online payment site of being a haven for criminal activity like processing investment scams and payments for child pornography. They said its loose verification standards for users' identity attracted criminals.

The three men and the … Read more

Until Monday, Sen. Ted Stevens was best known in technology circles for his "series of tubes" analogy. Now he'll be known for his jury conviction on corruption charges.

A federal jury in Washington, D.C., convicted the Alaska Republican of all seven charges of accepting gifts and home renovations from a wealthy oil contractor and then lying about them on official documents.

Stevens is running for re-election next week. Because it's too late for the Republican Party to remove his name from the ballot and because it's not terribly likely that Alaskans will vote for … Read more