Menu

Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Foreign Bribery Investigation – Criminal Prosecution

Hewlett-Packard subsidiary ZAO Hewlett-Packard A.O. (HP Russia) pleaded guilty to felony violations of the Foreign Corrupt Practices Act (FCPA) and admitted its role in bribing Russian government officials to secure a contract with the Office of the Prosecutor General of the Russian Federation. The U.S. Department of Justice filed a criminal information charging HP Russia with conspiracy and violations of the anti-bribery and accounting provisions of the FCPA. HP Russia executives and other employees created a secret slush fund totaling several million dollars, at least part of which was intended for bribes to Russian government officials. In addition, Justice entered into criminal resolutions with HP subsidiaries in Poland and Mexico relating to contracts with Poland’s national police agency and Mexico’s state-owned petroleum company. Pursuant to a deferred prosecution agreement, the government charged Hewlett-Packard Polska, Sp. Z o.o. (HP Poland) with violating the accounting provisions of the FCPA. From 2006 through at least 2010, HP Poland falsified HP books and records and circumvented HP internal controls to execute and conceal a scheme to corruptly secure and maintain millions of dollars in contracts with the Polish national police agency. HP Poland made corrupt payments totaling more than $600,000 in the form of cash bribes and gifts to Polish government officials. Hewlett-Packard Mexico, S. de R.L. de C.V. (HP Mexico) entered into a non-prosecution agreement under which it forfeited proceeds and admitted and accepted responsibility for its misconduct. HP Mexico falsified corporate books and records and circumvented HP internal controls in connection with contracts to sell hardware, software, and licenses to Petroleos Mexicanos (Pemex). In total, the three HP entities paid $76.8 million in criminal penalties and forfeiture. See related Hewlett-Packard instance, “Foreign Bribery Investigation – SEC Settlement”.

Misconduct Type
Ethics
Enforcement Agency
Justice
Contracting Party
International
Court Type
Criminal
Disposition
Pleaded Guilty
Date of Plea Announcement
4/9/2014
Contractors Involved Penalty
Total
Hewlett-Packard Company $76,760,224

See also:

Federal Contractor Misconduct Database