Several Former Hewlett-Packard (HPQ) Exec's Being Investigated for Bribery
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Price: $25.10 +1.17%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 4.8%
Revenue Growth %: +2.9%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 4.8%
Revenue Growth %: +2.9%
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Several Hewlett-Packard (NYSE: HPQ) executives are being investigated for bribery to win contracts in Russia, according to several sources today.
The allegations are that the HPQ executives paid about €8 million [$10.9 million] to win a €35 million contract for the company to sell computer gear through a German subsidiary to the office of the prosecutor general of the Russian Federation.
Prosecutors in the German city of Dresden asked colleagues in Moscow to search the offices there to find evidence of the €8 bribe.
Suspicions were raised when an audit of Saxony turned up transactions of money that seemed to have produced nothing in return.
Currently, the German prosecutors are awaiting documents that were found in the raid, before deciding how to proceed. The suspects, out on bail, are under suspicion of possible breach of trust, tax evasion and bribery of foreign officials.
Hewlett-Packard has confirmed the investigation, but hasn't provided any details as of yet.
The Wall Street Journal notes that the German officials are looking into whether HPQ executives funneled the suspected bribes through a network of shell companies and accounts in places including Britain, Austria, Switzerland, the British Virgin Islands, Belize, New Zealand, the Baltic nations of Latvia and Lithuania, and the states of Delaware and Wyoming.
The allegations are that the HPQ executives paid about €8 million [$10.9 million] to win a €35 million contract for the company to sell computer gear through a German subsidiary to the office of the prosecutor general of the Russian Federation.
Prosecutors in the German city of Dresden asked colleagues in Moscow to search the offices there to find evidence of the €8 bribe.
Suspicions were raised when an audit of Saxony turned up transactions of money that seemed to have produced nothing in return.
Currently, the German prosecutors are awaiting documents that were found in the raid, before deciding how to proceed. The suspects, out on bail, are under suspicion of possible breach of trust, tax evasion and bribery of foreign officials.
Hewlett-Packard has confirmed the investigation, but hasn't provided any details as of yet.
The Wall Street Journal notes that the German officials are looking into whether HPQ executives funneled the suspected bribes through a network of shell companies and accounts in places including Britain, Austria, Switzerland, the British Virgin Islands, Belize, New Zealand, the Baltic nations of Latvia and Lithuania, and the states of Delaware and Wyoming.
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