Naughty, naughty.
The indictment was filed August 30 but was not previously disclosed, the Journal notes, pointing out that HP could face fines and other penalties if the court finds the company benefited from the alleged crime. Following a three-year investigation, the German prosecutors assert that three HP VPs approved creation of a fund which was used to route cash to Russia through a network of shell companies.
HP told the Journal that the charges involved events that happened nearly 10 years ago by a former HP unit and that the company was only named as a "side participant" in the proceedings, was not indicted and was cooperating with the prosecutors. But the Journal notes that under German law only people can be charged with bribery, and not companies, although they can still be penalized for their activities as side participants.
The Journal notes that HP had previously disclosed that the Justice Department and the SEC already had been investigating allegations that the company paid bribes to officials in Russian and other countries.
Charged with bribery, tax evasion and embezzlement were Hilmar Lorenz, a German and former H-P marketing executive in Russia; Ken Willett, a Germany-based American H-P manager; and Päivi Tiippana, a Finn and former manager at the company. The Journal notes that prosecutors also indicted Ralf Krippner, a German politician and businessman, as an accessory for helping to relay the funds.
