Recently Hewlett-Packard Co. (HP) agreed to pay $108 million to resolve bribery investigations to help secure a multimillion-dollar contract with government agencies in Russia, Poland, and Mexico. HP pleaded guilty to violating the Foreign Corrupt Practices Act (FCPA). The 108 million paid by HP is among the largest ever paid by a U.S. company for violations of the FCPA.
Yet world wide Siemens AG still holds the record in 2008 when they paid the SEC and Justice department $800 million for violations. Not far behind, Alcoa Inc. this year agreed to a $384 million settlements for bribery.
What exactly is the Foreign Corrupt Practices Act?
The United States Department of Justice website explains that the Foreign Corrupt Practices Act of 1977 (FCPA) is a United States federal law that addrDepartmentesses bribery of foreign officials as well as visible accounting records. It applies to any person or business of the United States who is taking part in foreign corrupt practices that include giving anything of value (money or otherwise) to a foreign government official, candidate, or party.
A Wall Street Journal article titled H-P to Pay $108 Million to Settle Bribery Case by Spencer E. Ante and Don Clark explains what happened and gives example of how HP violated the FCPA.
In Poland, between the years 2006 and 2010, HP was involved in more than $600,000 in bribes, $360,000 of which involved an unnamed HP executive repeatedly delving bags of cash to Polish Police Officials to secure contracts valued at $32 million.
In Mexico, HP made $1.4 million in bribe payments, $125,000 of which were funneled to a government official to secure a $6 million dollar software sale.
And in Russia, between the years of 2000 and 2007, HP created a slush fund filled with several of millions of dollars for Russian officials, and financed lavish expenses. One example was a $150,000 hotel bill for a company owed by a family member of an unnamed senior Russian Government Official.
Along with the $76.8 million paid in penalties and forfeiture and the $31.5 million paid for SEC settlement (totaled $108 million), HP also cooperated largely with the investigation saving a large amount of time and money for both sides. HP cooperated by conducting an extensive internal investigation, voluntarily making U.S. and foreign employees available for interviews, and collecting, analyzing, and organizing evidence and information for the Department, enhancing there protocols, terminating involved employees, and agreed to continue to cooperate with the Department in any ongoing investigation of the conduct of the conduct of the Company and its officers, directors, employees, agents, and consultants relating to violations of the Foreign Corrupt Practices Act of 1977.
Whiskey
Tin Cup American Whiskey
This is a wonderful whiskey and I would recommend it to anyone who like a sweet finish. Created by whiskey entrepreneur Jess Graber (co-founder of Stranahan’s Colorado Whiskey) and Proximo Spirits. Tincup American Whiskey is distilled by MGP Ingredients in their Lawrenceburg, Indiana facility, then sent over and bottled in Colorado. As purely a marketing tactic, they call it a Colorado whiskey and even have Colorado etched into their bottles. Don’t be fooled, it is not a Colorado whiskey.
A Dram for Your Thoughts 
