FBI: Hewlett-Packard’s Incredible Scam Claims Under Review

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Did Autonomy truly swindle Hewlett-Packard (NYSE:HPQ) to the tune of a whopping $8.8 billion write down? According to Bloomberg, the FBI is now involved after the SEC asked for assistance in one of the biggest M&A scam accusations to ever rock Silicon Valley.

How Does the Accusation Add Up to an $8.8 Billion Write Down?

“More than $5 billion of the charge relates to accounting missteps, including improperly categorized hardware, Hewlett- Packard said. The rest is linked to Hewlett-Packard’s share value and projections that the deal won’t meet expectations, said the company, which also forecast fiscal first-quarter profit that missed analysts’ estimates,” reports Bloomberg.

CHEAT SHEET Analysis: Does “Honest Accounting Govern Hewlett-Packard’s Books”?

One of the core components of our CHEAT SHEET Investing Framework requires companies to have zero evidence of accounting manipulation. In this case, Hewlett-Packard fails our test.

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