Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

U.S. investigates HP execs for bribery - report

By David Goldman, staff writer


NEW YORK (CNNMoney.com) -- The Securities and Exchange Commission is investigating whether Hewlett-Packard executives paid nearly $11 million in bribes to secure a contract from a Russian official's office, according to a news report.

The German and Russian governments had already been investigating the alleged incident to determine whether HP had engaged in any illegal activities. The SEC joined those nations' investigations on Thursday, according to The Wall Street Journal.

"HP has been in communication with the SEC and will continue to fully cooperate with the authorities investigating this matter," an HP spokeswoman said in an e-mailed statement.

The SEC could not immediately be reached for comment.

The investigation is looking into allegations that a German subsidiary of HP paid an €8 million ($10.9 million) bribe to win a €35 million ($47.7 million) computer components contract from the Russian prosecutor general's office, according to the report.

Two former HP executives and one current executive were arrested by German authorities in December, though no formal charges were brought upon them, and they have since been released.

Shares of HP (HPQ, Fortune 500) fell 27 cents or 0.5% after hours to $54.25.  To top of page

Index Last Change % Change
Dow 18,334.03 190.58 1.05%
Nasdaq 5,318.21 49.06 0.93%
S&P 500 2,170.89 19.76 0.92%
Treasuries 1.60 0.04 2.83%
Data as of 1:49pm ET
Company Price Change % Change
Procter & Gamble Co 89.57 1.34 1.52%
Bank of America Corp... 15.61 0.45 2.97%
Chesapeake Energy Co... 6.20 0.08 1.39%
Cognizant Technology... 48.65 -6.35 -11.55%
Wells Fargo & Co 44.52 0.15 0.33%
Data as of 1:34pm ET
Sponsors

Sections

Former Wells Fargo hourly workers interviewed by CNNMoney say they were forced to stay late to meet crazy sales goals without being paid overtime required by federal law. More

China is no longer offering Venezuela new loans, according to experts. It spells bad news for Venezuela, which relied heavily on Chinese finance. More

Scientists believe that by using robots to study fecal matter, they can predict the spread of communicable diseases and influence health policy. More

U.S. Labor Secretary Tom Perez writes about why the Labor Department introduced a new rule requiring federal contractors to provide paid sick leave to workers. More