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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 – SEC Settlement

The U.S. Securities and Exchange Commission (SEC) charged Hewlett-Packard with violating the Foreign Corrupt Practices Act (FCPA) when its subsidiaries in Russia, Poland, and Mexico made improper payments to government officials to obtain or retain public contracts. From approximately 2000 to 2007, HP Russia paid more than $2 million through agents and shell companies to a Russian government official to retain a multi-million dollar contract with the Office of the Prosecutor General of the Russian Federation. From approximately 2006 to 2010, HP Poland provided gifts and cash bribes worth more than $600,000 to a Polish government official to obtain contracts with the national police agency. HP Mexico paid more than $1 million in inflated commissions to a consultant as part of its bid to win a software sale to Mexico’s state-owned petroleum company, Petroleos Mexicanos (Pemex). At least $125,000 of the commissions was funneled to a government official at Pemex. HP consented to the SEC’s order, which found violations of the Securities Exchange Act of 1934. The company agreed to pay $29 million in disgorgement ($2.5 million of which went toward HP Mexico’s resolution of a parallel U.S. government criminal investigation) and $5 million in prejudgment interest.

Misconduct Type
Ethics
Enforcement Agency
SEC
Contracting Party
International
Court Type
Administrative
Disposition
Settlement
Date of Settlement Announcement
4/9/2014
Contractors Involved Penalty
Total
Hewlett-Packard Company $31,472,250
Further Information Released
Hewlett-Packard Press Release 4/9/2014
SEC Order 4/9/2014
SEC Press Release 4/9/2014

See also:

Federal Contractor Misconduct Database