I know this is tin-foil hat fodder, but at least one judicial opinion (http://www.politechbot.com/docs/fbi.ardito.roving.bug.opinion.120106.txt) referenced a bug that could track/listen in on the subject "whether the phone was powered on or off," although that may have been a judge misinterpreting the technobabble spouted at him, or an FBI agent overhyping their tech to the judge.
It seems like with smartphones all the rage now, it would be possible, e.g. to create a root kit that would simply mimic the phone entering a powered down state while still transmitting, although this would have an obvious effect on battery life unless it actually powered down most of the time and just woke up to transmit basic location information in a heartbeat configuration. Is there anything similar out there in use by either "good guys" or "bad guys" that you know of?
