From CRN: Hewlett-Packard (NYSE:HPQ) said Monday it's in "advanced discussions" with the U.S. Department of Justice and the Securities and Exchange Commission about their investigations of alleged bribery, embezzlement and tax evasion by current and former HP employees working outside the U.S.
One of the investigations centers on a $44.5 million deal between Hewlett-Packard ISE GmbH, a former Germany-based HP subsidiary, and the General Prosecutor's Office of the Russian Federation. The deal, which ran from 2001 to 2006, covered the delivery and installation of an IT network, HP said in its annual 10-K filing.
The German PPO has already indicted one current and two ex-HP employees in the case. The U.S. agencies, which began looking into the deal in 2010, are apparently ready to close their investigation into whether HP employees violated the U.S. Foreign Corrupt Practices Act (FCPA), which restricts bribery of foreign officials.
"HP is cooperating with these investigating agencies. In addition, HP is in advanced discussions with the U.S. enforcement agencies to resolve their investigations," HP said in the 10-K filing.
In a separate case, U.S. enforcement authorities are working with the Polish Central Anti-Corruption Bureau to investigate whether a former HP employee violated the FCPA in closing public sector deals in Poland, according to the filing.
The SEC and DOJ are also looking at "certain other public-sector transactions" in Russia, Poland, Mexico, the Commonwealth of Independent States and other countries, HP said in the 10-K. HP could face fines and civil penalties of up to $725,000 per violation and criminal penalties of up to $25 million per violation, or up to twice the gain from the violation.
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