The SEC, Microsoft and SCO

Monday, March 08 2004 @ 01:36 PM EST

Contributed by: PJ

Newsforge has broken a story that the SEC may be looking into a MS-SCO connection and may have been looking into it since complaints began arriving last August. They tell Newsforge that they have had many such complaints and that they take the complaints seriously.

"Whether or not Microsoft is secretly bankrolling the SCO Group for more than $100 million to attack Linux and the general open source community through questionable intellectual property lawsuits, NewsForge has learned that U.S. federal regulators may have begun investigating the relationship between the two companies -- and may also be looking closely at a number of other people and companies connected to them through stock or other business transactions.

"Although the Securities and Exchange Commission (SEC) never officially makes public when it investigates an organization, an SEC staff member told NewsForge that complaints and tips about suspected under-the-table funding, stock-kiting, illegal insider trading, and money-laundering involving Microsoft or Microsoft-connected individuals to the financially struggling SCO Group have been coming into the agency with regularity since last August. The SEC 'does not take such complaints lightly,' the source said."

They have a link to Onecle, where you can find a collection of SCO contracts. Onecle is a website that provides sample contracts and other resources for California attorneys, likely by finding them at court or on SEC filings or by donations from the companies themselves. The contract between SCO and S2 is available here and the entire SCO collection is also available, including Ransom Love's severance agreement and the Canopy-Caldera 1998 Security Agreement.

Newsforge writes that they are not sure if the contract is the actual one, but this S2 agreement is attached to SCO's January 10K, and we have linked to it since January 29. I say this for two reasons: it's legitimate, and two, don't forget the SCO Archives, which is a chronological list of all articles on Groklaw, and our Search function when you are doing research. Newsforge did try to reach me, but I didn't get to their email under my daily blizzard in time. I'll be setting up a media email account. I guess it's time.

If any volunteers would like to help out, I think it would be helpful to go through the archives and list what is covered on each page so we can make the Archives more useful. The titles don't always indicate all the information contained in the article. Once we have it described that way, it will help journalists find what they need even if they don't reach me personally in time. If anyone is willing, please contact me. There is a little envelope icon to the left. Just click on it to email me.