Summary Hewlett-Packard's Russian subsidiary admitted violating the Foreign Corrupt Practices Act.
SAN FRANCISCO (AP) - Hewlett-Packard Co. pleaded guilty Thursday to felony charges that former employees bribed Russian government officials for a contract, and the company has been fined $58.7 million.
Hewlett-Packard s Russian subsidiary admitted violating the Foreign Corrupt Practices Act in a Northern California court Thursday, the U.S. Department of Justice said in a statement.
The U.S. alleged that the HP division paid $2 million to retain a technology contract with Russian prosecutors.
"In a brazen violation of the FCPA, Hewlett-Packard s Russia subsidiary used millions of dollars in bribes from a secret slush fund to secure a lucrative government contract," said Principal Deputy Assistant Attorney General Marshall L. Miller. "Even more troubling was that the government contract up for sale was with Russia s top prosecutor s office."
The plea and sentence are part of a larger agreement reached in April with the Justice Department and the Securities and Exchange Commission. HP agreed to pay a total of $108 million in criminal and civil penalties for bribing officials in Russia, Mexico and Poland.
Representatives of the Palo Alto, California, company did not immediately reply to after-hours phone and email messages seeking comment.
HP s general counsel, John Schultz, said when the settlement was reached in April that the misconduct was limited to a small number of people who are no longer with the company.
