Callahan & Blaine

California-based Hewlett Packard has settled two separate but related whistle-blower lawsuits. The suits alleged that HP violated competitive bidding rules for federal programs providing internet services to public schools. HP company contractors reportedly bribed Texas school officials with expensive gifts such as Super Bowl tickets and rides on fancy yachts. In exchange, the school officials allegedly granted HP federally funded contracts that pay for Internet connections for schools and libraries.

As part of the tangle of legal actions, the Federal Communications Commission and the U.S. Department of Justice accused HP of fraud related to the government’s E-Rate program in Dallas and Houston public Schools. The federal program provides internet access for rural schools.

HP says they require all employees and contractors to conduct themselves in an ethical and legal manner, and HP no longer works with the questionable contractors. An HP spokesperson also points out the company cooperated fully with the federal investigation.

There were also criminal charges related to the cases: In 2008, Frankie Wong, the former chief executive of Micro Systems and Ruben Bohuchot, the former chief technology officer of the Dallas Independent School District were found guilty of bribery. The U.S. District Court judge sentenced them to more than ten years in prison for their roles in the Dallas School District case.

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