HP Admits To Bribery And Money Laundering, Pays $108M To Settle

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News Posted: Thu, Apr 10 2014 12:37 PM
If you picture an HP executive as a straight-laced person in a conservative suit, it’s time to shake up that image, because three HP subsidiaries--in Russia, Poland, and Mexico--have spent years bribing government officials in those respective countries to snag lucrative contracts.

"Hewlett-Packard subsidiaries created a slush fund for bribe payments...employed two sets of books to track bribe recipients, and used anonymous email accounts and prepaid mobile telephones to arrange covert meetings to hand over bags of cash," said Deputy Assistant Attorney General Bruce Swartz in a statement.

Securities and Exchange Commission
Securities and Exchange Commission (Credit: Wikipedia/AgnosticPreachersKid

In Russia, the HP subsidiary bribed the Russian federal prosecutor’s office with millions of dollars and swanky gifts that included expensive watches and “swimming pool technology” (whatever that means), according to Reuters. The aforementioned slush fund was created in Russia by way of the HP subsidiary buying back its own products at jacked-up prices.

HP paid at least one official at Poland’s national police agency some $600,000 over the course of several years to land tech contracts worth a reported $39.71 million, and the Mexico HP subsidiary greased the skids towards a deal with Mexico’s state-owned Pemex petroleum company with a $1.4 million bribe.

The SEC and the U.S. Justice Department have reached a settlement with HP for $108 million. To HP’s credit, "The misconduct described in the settlement was limited to a small number of people who are no longer employed by the company," stated HP executive VP and general counsel John Schultz.

Reportedly, the U.S. DoJ acknowledged that HP as a whole has cooperated fully and has taken strong actions to prevent such corruption from happening again at the company.
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Jaybk26 replied on Thu, Apr 10 2014 2:35 PM

Wow, this is terrible, but for some reason, I can't stop laughing. :D

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StaticFX replied on Thu, Apr 10 2014 4:43 PM

this sounds like the normal practice that goes on here in the states... lol

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yeah, why would you want to have a crappy HP machine, the budget ones at that as a workstation, you need something reliable.

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AND NO ONE GOES TO JAIL! get caught smoking a little weed, can turn into life imprisonment. Our justice system is a tad SCREWED UP. Banks, Farmers, Oil...they take and take and take, Stealing, fraud, cheating, bribing and those on the take never have to worry about laws or justice. AMERICA YOU BUILT THAT!

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Connor replied on Fri, Apr 11 2014 9:41 PM

My parents worked for HP for decades, and they just laughed and said, "It took them that long to get caught?"

So yeah, I'm guessing that was just basic business practice.

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I can't honestly understand why USDOJ is involved in prosecuting a company for crimes committed in other countries.

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lol HP.

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