ZAO Hewlett-Packard A.O. ("HP Russia"), was a wholly owned subsidiary of Hewlett-Packard company ("HP Co.") operating and incorporated in the Russian Federation. HP Co. was a technology company headquartered in Palo Alto, California, and incorporated in Delaware. HP Co. was a global provider of personal computing devices, information technology infrastructure, and imaging and printing products and services.
According to the criminal Information, in 1999 the Russian government announced a project to automate the computer and telecommunications infrastructure of its Office of the Prosecutor General of the Russian Federation (GPO). The project itself was worth more than $100 million (the first phase was valued at approximately $35 million), but HP Russia viewed it as the “golden key” that could unlock the door to another $100 to $150 million dollars in business with Russian government agencies. To secure a contract for the first phase of the project, HP Russia executives created a secret slush, which by 2003 totaled approximately €8 million (about $10 million in U.S. dollars at then-prevailing exchange rates), at least part of which was intended for bribes, kickbacks, and other improper payments.
On April 9, 2014, the DOJ filed an information against HP Russia, charging the company with conspiracy to violate the anti-bribery, books and records and internal controls provisions, and substantive violations of the anti-bribery, internal controls, and books and records provisions of the FCPA. At the same time, HP Russia entered into a plea agreement with the DOJ, agreeing to pay a $58,772,250 fine.
In a related action, HP Co. consented to the entry of an administrative cease and desist order. HP Co. shall cease and desist from violating the internal controls and books and records provisions of the FCPA. HP Co. agreed to pay disgorgement of $29,000,000 and prejudgment interest of $5,000,000. $2,527,750 of HP Co.'s disgorgement obligation will be satisfied by HP Co.'s payment of $2,527,750 in forfeiture as part of HP Mexico’s non-prosecution agreement with the DOJ.
