Story updated with statement from former Dell executive Nicholas Dunning. ROUND ROCK, Texas ( TheStreet) -- Dell ( DELL) has reached a settlement with the SEC over the long-running fraud investigation into the PC maker's relationship with Intel ( INTC ). Dell agreed to pay a penalty of $100 million. Dell CEO Michael Dell also agreed to pay a $4 million penalty to settle an SEC disclosure charge against him. The company's shares dipped 10 cents, or 0.75%, to $13.30 in extended trading.
In a statement released on Thursday, the SEC confirmed that it had charged the company with disclosure and accounting fraud. Officials alleged that the firm did not disclose information to its investors about large exclusivity payments it received from Intel to not use central processing units (CPUs) manufactured by an Intel rival. Officials allege that, without the payments, Dell would have missed Wall Street's EPS estimates in every quarter from fiscal 2002 to fiscal 2006. "It was these payments, rather than the company's management and operations, that allowed Dell to meet its earnings targets," explained the SEC. "After Intel cut these payments, Dell again misled investors by not disclosing the true reason behind the company's decreased profitability." The SEC also charged CEO Dell, former CEO Kevin Rollins and former CFO James Schneider for their alleged roles in the disclosure violations. SEC officials also charged Schneider, former regional vice president of finance Nicholas Dunning, and former assistant controller Leslie Jackson for their alleged part in the improper accounting. Michael Dell and Rollins have each agreed to pay a $4 million penalty, and Schneider agreed to pay $3 million to settle the SEC's charges against them. Dunning and Jackson also agreed to settle the SEC's charges, according to officials. Dell recently updated investors on the five-year SEC fraud investigation, revising its first-quarter results to account for a possible $100 million settlement. In a statement released on Thursday, the tech giant explained that Dell and its CEO had entered into the settlements "without admitting or denying" the allegations in the SEC's complaint. "We are pleased to have resolved this matter," explained Michael Dell, in the statement. "Mr. Dunning is pleased to have finally resolved this matter with the SEC, more than three years after he resigned from Dell's European operations," added a lawyer for Nicholas Dunning, in a statement emailed to TheStreet. "The complaint does not allege that Mr. Dunning engaged in any form of fraud whatsoever or that he acted with any fraudulent intent. Mr. Dunning looks forward to putting this matter behind him." -- Reported by James Rogers in New York Follow James Rogers on Twitter.