The bug appears to me like this:

Even with UTC=no, Ubuntu stores the time as UTC at shutdown. But since
UTC=no, it expects the time as local, thus applies no timezone
correction, and the time is 4 hours fast for those in EDT country.

Took me the longest time to suss it out, since having automatic time
synch enabled fixed the time before a clock was ever displayed - for me,
the problem only showed up when I dual-booted over to Windows, or turned
off the auto-sync.

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Touch seeded packages, which is subscribed to sysvinit in Ubuntu.
https://bugs.launchpad.net/bugs/1377698

Title:
  /etc/default/rcS: UTC=no is being ignored

Status in “sysvinit” package in Ubuntu:
  Confirmed

Bug description:
  This causes the greeter time to display utc & sets system time to utc
  Affects users who are in a different timezone
  Also affects users who dual boot with windows, their time will be off by 
amount different from utc to their time zone

  ProblemType: Bug
  DistroRelease: Ubuntu 14.10
  Package: initscripts 2.88dsf-41ubuntu18
  ProcVersionSignature: Ubuntu 3.16.0-20.27-generic 3.16.3
  Uname: Linux 3.16.0-20-generic x86_64
  ApportVersion: 2.14.7-0ubuntu3
  Architecture: amd64
  CurrentDesktop: Unity
  Date: Sun Oct  5 14:16:48 2014
  InstallationDate: Installed on 2014-10-05 (0 days ago)
  InstallationMedia: Ubuntu 14.10 "Utopic Unicorn" - Alpha amd64 (20140923)
  SourcePackage: sysvinit
  UpgradeStatus: No upgrade log present (probably fresh install)
  mtime.conffile..etc.default.rcS: 2014-10-05T10:58:21.042693

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