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About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Hewlett-Packard Company

False Claims Involving the E-Rate Program in Texas

Date: 11/10/2010 (Date of Settlement Announcement)

Misconduct Type: Ethics

Enforcement Agency: FCC

Contracting Party: None

Court Type: Civil

Amount: $16,250,000

Disposition: Settlement

Synopsis: Hewlett-Packard agreed to pay the United States over $16 million to settle a civil lawsuit alleging that the company violated the False Claims Act in connection with the Federal Communications Commission’s (FCC) E-Rate program, which uses funds collected from customers to provide Internet service to needy schools and libraries. The FCC alleged that contractors working with HP and other companies lavished gifts (including yacht cruises and Super Bowl tickets) on Dallas and Houston school district personnel between 2002 and 2005 in order to get inside information on and win contracts. Of the settlement amount, $7.4 million is attributable to the Dallas school district allegations, and $8.8 million is attributable to the Houston allegations. In settling, HP did not admit any wrongdoing or liability.