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Security Newswire

U.S. Widens Probe of HP Bribery Allegations

September 13, 2010

U.S. investigators have widened their probe of alleged kickbacks paid to Russian authorities by employees of a Hewlett-Packard Co. subsidiary in Germany.
 
Authorities in Russia, Germany and the U.S. have been looking into alleged bribes totaling $11 million paid to secure a $44.5 million contract that ran from 2001 until 2006, says an AP report. Now, the U.S. Securities and Exchange Commission is also investigating governmental and "quasi-governmental" transactions in Russia dating to 2000.
 
HP says it is cooperating with the investigation, the report says, which so far has not produced any allegations aimed at the company itself.
 
The Russian kickback probe came up in April when authorities arrested three people in Germany and Switzerland in connection with the allegations, says the report. German prosecutors charged them with offenses including breach of trust, tax evasion and money laundering. Authorities are also investigating six other individuals who did no work for HP but may have aided the bribery scheme, the report says.

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