Feeds

SEC slaps HP with $108 MEEELION fine over bribe scandal

Company accused of bribing officials for contracts

New hybrid storage solutions

HP has agreed to a $108m settlement with the US Securities and Exchange Commission (SEC) to settle charges that company representatives paid off government officials in order to obtain contract deals.

The SEC said that the settlement would end a case it had filed with the company alleging violations of the Foreign Corrupt Practices Act (FCPA) by HP subsidiaries in Russia, Poland and Mexico.

According to the SEC, HP subsidiaries in those three countries funneled millions of dollars to government officials in order to secure lucrative service deals and contracts. The company was said to have paid off a $2m package in Russia, a $1m payout in Mexico and $600,000 in Poland in order to secure government deals. The incidents are believed to have taken place between 2000 and 2010.

"Hewlett-Packard lacked the internal controls to stop a pattern of illegal payments to win business in Mexico and Eastern Europe. The company’s books and records reflected the payments as legitimate commissions and expenses," SEC chief of FCPA enforcement Kara Brockmeyer said.

"Companies have a fundamental obligation to ensure that their internal controls are both reasonably designed and appropriately implemented across their entire business operations, and they should take a hard look at the agents conducting business on their behalf."

Under the terms of its settlement, the SEC plans to collect a $74.2m fine from HP, along with an additional $5m in interest and $29m in disgorgement and forfeitures from the deals.

HP said that it has since cut ties with the offenders in its subsidiary operations and would be implementing additional compliance and reporting requirements.

"The misconduct described in the settlement was limited to a small number of people who are no longer employed by the company," executive vice president and general counsel John Schultz said in a company statement passed to El Reg.

"HP fully cooperated with both the Department of Justice and the Securities and Exchange Commission in the investigation of these matters and will continue to provide customers around the world with top quality products and services without interruption." ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.