HP to Settle Fraud Case With $16 Million

By Tuan Mai
published

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."

Tuan Mai
Tuan Mai
Tuan Mai is a Los Angeles based writer and marketing manager working within the PC Hardware industry. He has written for Tom's Guide since 2010, with a special interest in the weird and quirky.
7 Comments Comment from the forums
  • darussiaman16
    *sigh* can the author please proof-read this article -- SLOWLY -- and fix all the grammar errors? It's a really short piece, and yet I have counted at least 3 so far. It's really annoying. For instance, "HP's commented on the settlement..."
    Reply
  • eddieroolz
    HP seems to be an one-stop shop for all things unlawful these days.
    Reply
  • dEAne
    That is worth a penalty.
    Reply
  • thechief73
    Poor, HP. They just cannot stay out of the news for very long and more bad press comes out of the woodwork. It really makes you wonder whats going on at HP and what the future holds for them.
    Reply
  • Khimera2000
    Ouch. Thats not helping there cause. I'm thinking HP is going to need alot of charity, and PR work to patch up there image... Then again they could just blame other people for there problems. that is what corperations are doing these days right??? blame other people, and try to copy right the alphabet??
    Reply
  • razor512
    But you gotta admit, HP is good to have around, with out them, I would lose most of my business, fixing laptops since most of my more expensive repairs are done on mainly HP laptops. Their poor quality means lots of business for those of us who fix computers as a side job.
    Reply
  • lvlrdka22
    darussiaman16For instance, "HP's commented on the settlement..."You do know that apostrophe-s can stand for things other than attribution right? In this case it means "has."
    Reply