New Report Suggests VMWare, EMC Corp Hiding SEC Probe

Probes Reporter, an independent investment research firm focused on public company interactions with the SEC, released a report on Thursday stating that EMC Corporation and VMWare are "hiding an array of undisclosed SEC probes."

Probes Reporter continued that there exists "at least one" undisclosed SEC probe involving EMC, which has been confirmed as "on-going," while undisclosed SEC probes at VMWare were found "dating back to November 2013."

In April 2014 and May 14, 2015, the SEC confirmed EMC's involvement in on-going enforcement proceedings that were undisclosed at the time. In addition, the SEC confirmed EMC's involvement in on-going enforcement proceedings on August 3, 2015.

Meanwhile, In May 2014, and again in March 2015, the SEC confirmed VMWare's involvement in on-going enforcement proceedings that were undisclosed.

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'Joint Shenanigans?'

Confirmed Investigation Status

"A confirmed investigation is the highest standard we can achieve regarding undisclosed SEC activity at a public company," the Probes Reporter letter stated.

The probes allegedly surround EMC's executive use of private aircraft and private air travel, specifically EMC's Chairman and CEO Joseph Tucci. The report did however note that "for reasons unknown," the executive's use of the plane triggered an SEC investigation.

Another undisclosed and now-closed SEC probe of EMC dated sometime in 2012–2013 existed, but the company "did make an extra effort to hide it" from the investment community.

"The SEC probe into Mr. Tucci's jet perk cost his company – and shareholders – untold expenses to make it go away," the report noted. "As Chairman/CEO, Mr. Tucci clearly had a vested interest in making sure investors never learned about it. Worse, the only way investors know about the SEC investigation into the jet perk is because of this report."