Tag: Hewlett-Packard

HP to pay $16M for joining corrupt Texas schools consortium

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End product – from the people HP bribed to influence

Hewlett-Packard will pay more than $16 million to settle a lawsuit alleging they violated competitive bidding rules with the Houston and Dallas school districts to win technology contracts, the Department of Justice announced…

The DOJ inquiry that led to the settlement was triggered by a 2007 whistle-blower lawsuit filed in Houston by Dave Richardson and Dave Gillis…

Richardson, who owns an insurance company, became suspicious when his business dealing with HISD dried up. After enlisting the help of former FBI agent Gillis, they discovered what appeared to be sweetheart deals regarding technology purchases, including the lucrative federal program known as E-rate, which funds internet connections for schools and libraries.

“They took their findings to the government and said, ‘You need to do something.’ Not much was done, so they filed the lawsuit,” said their attorney, Travis Crabtree… Did anyone think the Bush administration would come down on the side of honesty in Texas?

The investigation accused Houston businessman Frankie Wong of setting up a group of companies, including Hewlett-Packard, that came to be known as “The Consortium.” They applied for technology contracts with both HISD and the Dallas Independent School District.

Because of their close connection with district officials, thanks to the suspect gratuities, the bid requirements were worded in such a way that only they could satisfy them, officials said.

More lawsuits from other firms screwed by the Consortium proceed. The Obama DOJ will intervene as needed on behalf of the plaintiffs.

Texas school boards will continue, of course, without tempering any of the corrupt ideology guiding their practices.

HP CEO Mark Hurd resigns after sex probe

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Daylife/Reuters Pictures used by permission

Hewlett-Packard Co.’s Mark Hurd resigned as chief executive officer after an investigation found he had a personal relationship with a contractor who received numerous inappropriate payments from the company.

Chief Financial Officer Cathie Lesjak, 51, will take over as interim CEO. While an investigation didn’t find a violation of the company’s sexual-harassment policy, Hurd “demonstrated a profound lack of judgment that seriously undermined his credibility and damaged his effectiveness in leading HP,” General Counsel Michael Holston said.

Shares plunged 9.3 percent in late trading after the announcement.

The departure leaves Hewlett-Packard, the world’s biggest maker of personal computers and printers, in search of a new CEO and chairman after more than five years under Hurd. On his watch, the Palo Alto, California-based company regained leadership in the PC market from Dell Inc. and used acquisitions to expand into new areas, such as computer services. The company’s stock-market value increased $44.6 billion, rising to $108.1 billion, since Hurd took the helm on April 1, 2005…

HP initiated the investigation on June 29 after the contractor made a claim of sexual harassment. The woman, who HP declined to identify, worked on marketing tasks for two years, the company said. The probe found violations of HP’s standards of business conduct, though it didn’t find violations of the harassment policy.

Hurd submitted receipts for expenses ranging from $1,000 to $20,000 over two years, including meals and travel, that should have been labeled as personal and not related to business, said a person familiar with the situation. Hurd, who is married and has two children, intends to pay the company back the entire amount.

Hurd will get a severance payment of $12.2 million, plus other benefits; so, don’t worry too much about whether or not he can afford his country club membership.

Hurd is also on the board of News Corp.

Which will give Ol’ Rupert a chance to moralize. Or not.

High fashion laptops in Vivienne Tam’s spring collection

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High-tech took on a fashionable twist in New York when the designer Vivienne Tam sent models down the runway clutching slim, red Hewlett-Packard laptops instead of evening bags.

“It’s a little laptop, like a fashionable clutch,” Tam said backstage before her show at which she gave a sneak peek at the limited-edition computer. “It’s so light, you could carry it anywhere.”

Her signature red peony print, the motif for her spring 2009 collection, appeared on the cover of the laptop, or “digital clutch,” which will not be available until early next year.

“I wanted to give life and color to a computer,” Tam said. “Even if you’re in the office, you should feel like you’re in a garden.”

Since I’ve telecommuted for years, I actually get to work from the garden whenever I wish to.

I don’t think a peony-covered laptop would make it more enjoyable.