According to the FCC, HP will pay $16.25 million to settle a case of fraud which landed some jail time for a school district's former CTO and HP computer reseller.
The former CTO at the Dallas Independent School District, Ruben Bohuchot, was sentenced to 11 years in federal prison and the computer reseller, Frankie Logyang Wong, was sentenced to 10 years.
The case, involving bribery and insider knowledge of contracting needs in school districts, involved over $17 million in HP equipment. The case was included the FCC's E-Rate program, which aims put broadband into schools and libraries. The FCC stated that a majority of the settlement from HP will be going back into the E-Rate program.
HP's commented on the settlement, "HP requires that all employees and partners adhere to lawful and ethical business practices. The activities at the center of this investigation occurred more than five years ago, the partner relationships have been terminated and the employees involved are no longer with the company. HP fully cooperated with the authorities and the matter is now resolved."
Austin Schlick, General Counsel of the FCC, stated that, "If HP fails to monitor its E-rate activities closely and abide by E-Rate Program requirements, it will face substantial penalties."