Websphere News Desk
DOJ Suspects EMC of Hanky-Panky
The Justice Department is investigating storage biggie EMC
Mar. 4, 2009 11:45 AM
The Justice Department is investigating storage biggie EMC, the parent company of virtualization leader VMware, for kickbacks and overcharging on government contracts.
According to the Wall Street Journal, NetApp, an EMC rival, is expected to pay $128 million for overbilling the government by $131 million.
EMC is supposed to have paid off companies such as Accenture to get its products used in government contracts.
Both EMC and Accenture deny the charges.
The DOJ also says it has joined a private whistleblower suit lodged in federal court in Arkansas accusing EMC of violating the False Claims Act and bilking the government for the last 10 years.
The agency charged EMC with failing to disclose its commercial prices to the General Services Administration during contract negotiations and paying kickbacks to integrators.
About Maureen O'GaraMaureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara