The U.S. Securities and Exchange Commission provoked controversy by releasing a list of companies it says have ties to Cuba, Iran, North Korea, Sudan or Syria - countries dubbed “state sponsors of terrorism.” Along with a number of multinational businesses including BP, HSBC, Nokia and Siemens, the SEC fingered small-capitalization companies.
Public relations software maker Vocus, Inc. (Nasdaq: VOCS) wasn’t even aware of its inclusion in the so-called “name-and-shame” list. Being aware was difficult since the Lanham, Md.-based company has no assets, no operations, no payroll and receives no revenue from the country the SEC accuses it of dealing with – Sudan.
“It was pretty traumatic for us. We were quite surprised,” Vocus CFO Steve Vintz said.
After learning of Vocus’ presence on the terror list, Vintz said a concerned investor contacted the company. The investor told Vintz he would sell all his Vocus shares in two weeks unless the company had a good explanation. Vintz explained that his company was included on the list because the company’s software aggregates news from all over the world including Sudan, site of the Darfur crisis.
“It’s the equivalent of a mapping company being attacked because it maps these countries,” Vintz said. “You’d think the SEC would have reached out and asked these companies for a response.”
Vintz said Vocus’ annual report filed a couple years ago mentioned Sudan, because it is one of the many places from which the company’s public relations workflow software aggregates content. The concerned Vocus investor kept all of his shares after Vintz provided an explanation. The company has complained to the SEC by sending a letter and is “waiting patiently” for a reply.
“No investor should ever have to wonder whether his or her investments or retirement savings are indirectly subsidizing a terrorist haven or genocidal state," SEC Chairman Christopher Cox said in a release.
