Hewlett-Packard agreed to pay $16.25 million to settle claims that...
Hewlett-Packard agreed to pay $16.25 million to settle claims that the company’s contractors defrauded the federal E-rate program, the FCC said. Whistleblowers told investigators that HP contractors “lavished gifts” on school officials in Dallas and Houston in order to win…
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$17 million in equipment contracts, the agency said. The gifts included yacht trips and tickets to the 2004 Super Bowl, the Justice Department and FCC alleged. Most of the civil settlement will go back into the E-rate fund. HP has also signed a compliance agreement to be overseen by the FCC and Justice, the FCC said. HP blamed rogue contractors for the scandal. The company said in a statement that it has “terminated” the contracts and fired employees involved in the case. HP said it has cooperated fully with investigators.