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HP to pay $16.25M to settle DOJ, FCC investigation

By Cecilia Kang

Hewlett-Packard has agreed to pay $16.25 million in a settlement with the Justice Department after an extensive investigation into allegations the company defrauded a federal program that brings Internet connections and computers to schools and libraries.

Justice and the Federal Communications Commission, which oversees the federal E-Rate program, had conducted the investigation into the computer and print giant in response to tips from whistelblowers, the FCC said in a statement.

The investigation looked into contractors working with HP and other companies, who allegedly lavished gifts on Dallas Independent School District and Houston
Independent School District personnel to get information and win contracts to sell $17 million in HP equipment to those schools.

Those gifts included meals, entertainment, trips on a yacht and tickets to the 2004 Super Bowl.

"Broadband is key to our children's 21st century education," said FCC Chairman Julius Genachowski in a statement. "That's why one of the FCC's top priorities is making sure E-rate works to benefit students and libraries. Today's settlement shows the extensive efforts of the FCC and DOJ to protect the E-rate program from waste, fraud, and abuse, and to deter misconduct in the future."

The settlement funds will mostly go back into the E-Rate program.

By Cecilia Kang  | November 10, 2010; 4:46 PM ET
Categories:  FCC  
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Next: Internet TV battles come to head at FCC


it appears that took place while senatorial candidate carly f was ceo of hp before she became opposed to goverment corruption and waste. i guess her first duty was to her shareholders.

Posted by: george32 | November 10, 2010 5:20 PM | Report abuse

Didn't this happen on the watch of another Republican politician who tells us of their "Christian" family values?

Posted by: areyousaying | November 10, 2010 5:49 PM | Report abuse

What happened to the public officials who were the recipients of these "lavish" gifts?
Texas does have the death penalty for capital crimes, but I guess white collar crime is considered a "cost of doing business" in Texas. Remember Enron?

Posted by: spinebob1 | November 10, 2010 7:38 PM | Report abuse

"The settlement funds will mostly go back into the E-Rate program."

Draw your attention to the word 'mostly'......Then wonder where the rest of the settlement funds will be going. And just how much 'mostly' really is.........

Posted by: momof20yo | November 11, 2010 9:57 AM | Report abuse

"The settlement funds will mostly go back into the E-Rate program."

The other 49.99999999% goes to lawyers!

Posted by: therev1 | November 11, 2010 3:47 PM | Report abuse

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