Hewlett-Packard subsidiaries in Russia, Poland, and Mexico have agreed to guilty pleas for a variety of felonious financial behaviors that include bribery, money laundering, slush funds, and secret off-shore accounts.
According to an April 9 press release from the U.S. Department of Justice and the FBI, HP Russia will plead guilty to “felony violations of the Foreign Corrupt Practices Act and admit its role in bribing Russian government officials to secure a large technology contract” with a division of the Russian government. Certain employees at HP Poland and HP Mexico engaged in similarly criminal behaviors.
According to Deputy Assistant Attorney General Bruce Swartz, “Hewlett-Packard subsidiaries created a slush fund for bribe payments, set up an intricate web of shell companies and bank accounts to launder money, employed two sets of books to track bribe recipients, and used anonymous e-mail accounts and prepaid mobile telephones to arrange covert meetings to hand over bags of cash.”
The penalties agreed to by HP Co. and its subsidiaries total $108 million. According to the Justice Department, the investigation had a large international scope and extensive coordination of investigative efforts. The court filings also note that HP Co. provided extensive cooperation in the investigation into these events at the named subsidiaries and undertook “extensive anti-corruption remedial efforts” including “disciplinary action against culpable employees and enhancing HP Co.’s internal accounting, reporting, and compliance functions.”
