US expands HP bribery probe

The U.S. government has widened its probe into possible bribes paid by Hewlett-Packard to help it capture a lucrative contract in Russia.

Officials in the U.S., Germany, and Russia have been investigating allegations that current and former employees of HP engaged in bribery, embezzlement, and tax evasion in connection with a business deal between Hewlett-Packard ISE GmbH, a former HP German subsidiary, and the chief public prosecutor's office in Russia, according to an SEC document filed by HP on Thursday (see Note 16 under Russia GPO and Related Investigations).

According to the allegations, the HP subsidiary paid bribes totaling $10.9 million to win a $44.5 million contract stretching from 2001 to 2006 to set up an IT network for the Russian prosecutor's office. Looking into the transaction, known as the Russia GPO deal, the Justice Department and the Securities and Exchange Commission are trying to determine if HP violated the Foreign Corrupt Practices Act, which specifically covers bribes paid to foreign government officials. But now the feds are reaching beyond their initial investigation back to 2000.

For more on this story, read Government expands HP bribery probe on CNET News.