SEC investigating HP over alleged Russian bribery

15.04.2010
Hewlett-Packard is cooperating with a U.S. Securities and Exchange Commission probe into allegations that the company bribed Russian officials in order to secure a 2003 computer contract.

On Wednesday, the company said that its Moscow offices had been raided, reportedly as part of a multimillion-dollar bribery investigation, spearheaded by German authorities. Thursday afternoon, HP confirmed that US authorities are now involved.

"HP has been in communication with the SEC and will continue to fully cooperate with the authorities investigating this matter," a company spokeswoman said via e-mail.

The investigation centers around the 2003 €35 million (US$47.8 million) sale of computer systems to the office of Russia's prosecutor general, coincidentally, the same office that investigates corruption cases in the country.

According to reports, German and Russian investigators are looking into charges that HP paid €8 million in bribes to secure the contract.

Even if a U.S. company commits bribery on foreign soil it is still illegal. The SEC can investigate bribery charges and bring civil actions against companies under the Foreign Corrupt Practices Act. But HP could be facing criminal charges, too. Those would be prosecuted by the U.S. Department of Justice.